Earnings per share on a non-GAAP basis surged 23 per cent at apparel marketer PVH Corp which has brands like Calvin Klein and Tommy Hilfiger in its portfolio for the fourth quarter ended December 31, 2014.
PVH said its fourth quarter earnings per share on a non-GAAP basis rose 23 per cent to $1.76, including a $0.10 negative impact related to foreign currency exchange rates.
“Earnings per share on a non-GAAP basis were $1.43 in the prior year’s fourth quarter,” the US based apparel marketer said in a press release.
PVH was able to book a turnaround in GAAP earnings per share at $0.62 compared to prior year’s fourth quarter loss per share of $0.46.
However, revenue increased slower at 5 per cent on a constant currency basis over the previous year’s fourth quarter revenue of $2.05 billion.
Revenue changes by business from the prior year period included a 6 per cent year over year hike at Calvin Klein on a constant currency basis and 2 per cent increase on a GAAP basis.
The Tommy Hilfiger business on a constant currency basis grew faster at 9 per cent from a year ago quarter, while on a GAAP basis it ascended by just 2 per cent.
In the fourth quarter of 2014, the Heritage brands business however posted a decline of 3 per cent over the fourth quarter of 2013.
Earnings before interest and taxes on a non-GAAP basis increased 4 per cent on a constant currency basis, but fell 2 per cent when including foreign currency exchange rate impacts.
PVH attributed the same to continued strong performance in Tommy Hilfiger and an earnings increase in Calvin Klein, partially offset by poor performance within the Heritage Brands dress shirt business.
Earnings before interest and taxes on a GAAP basis were $6 million as compared to $160 million in the prior year’s fourth quarter.
The decrease was primarily due to a retirement plan actuarial loss of $139 million incurred in the fourth quarter of 2014 as compared to an actuarial gain of $53 million in the fourth quarter of 2013.
Net interest expense decreased to $32 million from $45 million in the prior year’s fourth quarter due to lower average debt balances and interest rates.
In 2015, PVH expects its full year earnings per share results to be negatively impacted versus 2014 by approximately $1.20 per share from foreign currency exchange rates.
It also said that volatility in the global macroeconomic environment, particularly with respect to its businesses in Russia, would impact earnings.
The Company expects a negative impact of approximately $0.10 per share from its Russia businesses due to political and economic instability in the region.
