US based apparel marketer and NYSE listed, PVH Corp said its earnings per share for the third fiscal quarter ended November 2, 2014 rose in double digits from the prior year quarter.
On a non-GAAP basis, PVH which has marquee fashion brands like Calvin Klein and Tommy Hilfiger in its portfolio, said its earnings per share was $2.56, up 11 per cent from $2.30 in the prior year’s third quarter.
Revenue however grew slower by 2 per cent from the year ago quarter to $2.23 billion, excluding $67 million of sales related to the Bass business.
PVH said, third quarter of 2014 sales was negatively impacted by approximately $30 million, or 1 per cent due to foreign currency translation.
It also attributed a 1 per cent decline from the prior year period to Bass brand which was sold off on the first day of the beginning of last year’s fourth quarter.
Third quarter of 2014 revenue in the Calvin Klein business rose 2 per cent to $816 million from $800 million in the year earlier quarter, including a 1 percent negative impact from foreign currency impact.
Sales in the Tommy Hilfiger business increased 1 per cent in the reporting quarter to $930 million from $921 million in the prior year period, inclusive of a 2 per cent negative impact from foreign currency fluctuations.
For the third quarter of 2014, its Heritage brand sales went up by 3 per cent year-on-year to $487 million, excluding $67 million of revenue related to the Bass business.
A 6 per cent increase in the wholesale business was partially offset by a 6 per cent comparable store sales decline in the retail business at Heritage brand.
As a result of recent unfavourable foreign exchange rates, PVH said it is revising its non-GAAP full year earnings per share guidance to $7.25-$7.30, down from previous guidance of $7.30 - $7.40.
PVH has projected full year revenue at approximately $8.3 billion, up 3 per cent from the prior year, excluding revenue of $176 million related to the Bass business and also reflects a negative impact from foreign currency fluctuations.
CEO Emanuel Chirico noted, “We continue to plan the fourth quarter prudently. Given that the US dollar has strengthened significantly against several currencies, we have revised our full year earnings per share guidance.
“Together with the strategic investments made, along with our strong balance sheet and continued debt repayment, will position us to deliver long term global growth and stockholder value,” he added. (AR)
