American fashion group PVH had a strong third quarter as profits rose 17 % to 196.7 million dollars (143 million euro). Turnover even went up 38 % to 2.25 billion dollars (1.63 billion euro).
Warnaco’s purchase boosted turnover
Warnaco’s purchase, dating back to February, was essential to this turnover growth: Iit brought in 503 million dollars (365 million euro) on its own. However, PVH does expect a rather tough ride this holiday season: “Despite our better than expected third quarter results, we believe the current holiday season will be very competitive and highly promotional,” chairman and CEO Emanuel Chirico stated.
PVH is powered by several large brands, as it is a licence holder for Tommy Hilfiger, Calvin Klein and Speedo. Tommy Hilfiger’s turnover grew 10 % and its like-for-like turnover grew 3 % in North America and even 4 % in Europe. Warnaco’s purchase, licence holder to Calvin Klein underwear and jeans, doubled that brand’s turnover to 800 million dollars (580 million euro).
Next quarter’s expectations for PVH are to create a 1.4 dollar profit per share, while expectations all around were to get 1.53 dollar per share.
(Translated by Gary Peeters)