PVH fiscal 3Q profit up, revenue drops

Associated Press

NEW YORK (AP) — Clothing company PVH Corp. said Tuesday that its fiscal third-quarter profit rose 47 percent as sales of its higher-margin Calvin Klein and Tommy Hilfiger brands made up for a drop in revenue in other parts of its business.

PVH, previously known as Phillips-Van Heusen Corp., sells brands like Calvin Klein, Tommy Hilfiger, Izod and Timberland. It announced in October that it was buying rival The Warnaco Group in a deal worth $2.9 billion that cemented its control of the Calvin Klein clothing brand.

The company earned $165.4 million, or $2.24 per share, for the quarter that ended Oct. 28. That is up from $112.2 million, or $1.54 per share, a year ago. After adjusting for restructuring and other special costs, it made $2.34 per share.

Revenue slipped to $1.64 billion from $1.65 billion last year.

Analysts expected the company to earn $2.30 per share on revenue of $1.64 billion, according to FactSet.

Revenue from its Tommy Hilfiger business increased 1 percent and Calvin Klein revenue rose 6 percent. Those brands are the bulk of PVH business. That helped offset a 7 percent decline in revenue from its Heritage brands, largely because of the exit from Izod women's and Timberland wholesale sportswear businesses.

PVH expects to benefit from the Warnaco acquisition, which it thinks will close early next year. It also said Hurricane Sandy hurt its business in the first half of November.

PVH forecast earnings of $1.48 or $1.49 per share in the fourth quarter. Analysts expect $1.52 per share.

The company forecast profit of $6.37 or $6.38 per share for the full year on an adjusted basis, with analysts looking for $6.36 per share.

PVH shares rose $1.18 to $110.47 in after-hours trading. It fell $1.45 to close at $109.29 in the regular session.

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