PVH Q3 revenue up 38 percent

REPORT_ PVH third quarter revenue increased 38 percent compared to the prior year’s third 

 quarter. On a non-GAAP basis, earnings before interest and taxes increased 20 percent. On a non-GAAP basis, the effective tax rate was 26.5 percent as compared to 22.2 percent in the prior year’s third quarter. On a GAAP basis, the impact of the Warnaco acquisition on pre-tax income, combined with non-recurring discrete items recorded during the third quarter of 2013 related to the Warnaco integration, resulted in a decrease in the effective tax rate to 3.3 percent as compared to 21.2 percent in the prior year’s third quarter. Total revenue for the Heritage Brands businesses increased 10 percent while revenue for the pre-acquisition Heritage Brands businesses decreased 6 percent.

For the nine month period revenue on a non-GAAP basis increased 40 percent. There was a 9 percent increase in the Tommy Hilfiger business. Revenue in the Tommy Hilfiger North America business increased 11 percent driven by 5 percent comparable store sales growth, retail square footage expansion and double-digit growth in the North America wholesale business. Revenue in the Tommy Hilfiger International business increased 7 percent driven by 5 percent European retail comparable store sales growth, retail square footage expansion and a 9 percent increase in the Europe wholesale business, partially offset by continued underperformance in Japan, where the company continues its efforts to strategically reposition the brand.

The company projects that 2013 fourth quarter tax rate will be approximately 27 percent. The Company projects that non-GAAP 2013 full year tax rate will be approximately 26 percent.

PVH is based in New York. Emanuel Chirico, Chairman and Chief Executive Officer, noted, “Despite the difficult market environment, our third quarter results exceeded our expectations. Despite our better than expected third quarter results, we believe the current holiday season will be very competitive and highly promotional. “