CALVIN KLEIN GROWTH LEADS STRONG FOURTH QUARTER FOR PVH
PVH Corp, owner of such brands as Calvin Klein and Tommy Hilfiger, has reported consolidated fourth quarter earnings per share of $1.52, or $203 million, a 7 percent increase over last year’s fourth quarter, while fiscal year earnings were $7.05 per share, which was affected negatively by foreign currency exchange rates. In addition, PVH divested itself of its IZOD retail business during the past fiscal year.
Fourth quarter earnings from the company’s Calvin Klein business grew 31 percent on a constant currency basis, and earnings on Heritage Brands grew 11 percent. Conversely, earnings for Tommy Hilfiger, decreased 11 percent, due primarily weak international tourist spending in the company’s U.S. stores.
However, the company is expecting lower earnings in 2016 of $6.30 to $6.50 per share, due to the foreign exchange rates, since PVH’s international businesses purchase inventory in U.S. dollars. In 2016, PVH will also purchase the remaining 55% stake in its Tommy Hilfiger joint venture, and license Tommy Hilfiger’s women’s wear North America business to G-III Apparel Group.
“We are very pleased with our fourth quarter and full year 2015 results, which exceeded our expectations despite the difficult macroecomonic market and the highly promotional market in the U.S.,” said Emmauel Chirico, chairman and CEO of PVH. “2015 was a year of execution for PVH, as we stayed focus on our top strategic priorities and our continued commitment to invest in our brands and our retail platforms. While the global retail landscape continues to be uncertain with major foreign currencies largely weakening against the U.S. dollar and unpredictable and volatile global consumer spending, we believe that we can successfully navigate this environment and have taken a prudent approach to our 2016 plan.”
As of 12:15 pm on Thursday, PVH stock had risen 8.26% to 94.85.
