© The Financial Times Ltd 2015 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
November 28, 2012 5:56 pm
US clothing giant PVH doubled its profits despite a decline in revenue during its third quarter thanks to the continued success of Calvin Klein, Tommy Hilfiger and other leading brands in the group’s high-fashion portfolio.
For the three months ended October 28, the New York-based apparel group reported net income of $165.4m, or $2.24 per diluted share, 47.4 per cent more than the $112.2m, or $1.54 per share, reported in the third quarter of 2011.
While overall revenue for the company dropped slightly to $1.64bn from $1.65bn a year earlier – a dip for which the company in part blamed superstorm Sandy – revenue from its Tommy Hilfiger business increased 1 per cent and Calvin Klein revenue rose 6 per cent.
These gains also helped offset a 7 per cent decline in revenue from its Heritage brands, largely because of the group’s exit from Izod women’s and Timberland wholesale sportswear businesses, the group said on Tuesday.
Last month, PVH announced that it would reunite all the Calvin Klein brands under one corporate parent by paying about $2.9bn in cash and stock in a takeover of the Warnaco Group.
Warnaco currently holds the licence to manufacture and sell Calvin Klein-branded jeans and underwear. Uniting all of Calvin Klein will allow PVH to better manage the brand, with 40 per cent of the label’s business coming from the Warnaco products.
Emanuel Chirico, chief executive of PVH, said the management teams at PVH and Warnaco are “working diligently” to close the Warnaco acquisition in early 2013.
Copyright The Financial Times Limited 2015. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.