PVH’s Q1 revenues increase by 4 per cent

PVH reported its fiscal first quarterly results with

a 4 per cent increase in revenue amounting to $1.427 billion as compared to last year first quarter results. Earnings per share were reported to be $1.30 on a non-GAAP basis, which exceeded the company’s guidance and represents an increase of 6 per cent over the prior year’s first quarter non-GAAP earnings per share of $1.23.

Total revenue for the Calvin Klein business increased 7 per cent over the prior year’s first quarter to $262.1 million. Similarly, the Tommy Hilfiger continuing its strong momentum in business achieved an 8 per cent increase in revenue to reach $770.4 from last year. On the other hand, total revenue for the Heritage Brands business decreased 3 per cent to $394.9 million versus $408.1 million in the prior year’s first quarter. The Company ended the quarter with a net debt position of $1.743 billion, comprised of $1.982 billion of debt, net of $238.6 million of cash.

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are very pleased with our first quarter results, which were driven by our global Calvin Klein and Tommy Hilfiger businesses. We believe that the impact of the product cost increases that have negatively affected our industry will abate in the second half of 2012, which will have a positive impact on all of our businesses.”

As compared to the 2011 amount of $5.891 billion, company expects to increase its revenue by 1 per cent or 2 per cent for the full year fiscal 2012. Revenue for the Tommy Hilfiger business is expected to increase 2 per cent to 3 per cent and that for Calvin Klein by 6 per cent to 7 per cent. Whereas, revenue for the Heritage Brands business is expected to decrease 4 per cent to 5 per cent as compared to the 2011. On a non-GAAP basis, earnings per share in 2012 are currently projected to be in the range of $6.15 to $6.25, an increase of 14 per cent to 16 per cent over the 2011 amount of $5.38.

As far as second quarter is concerned, revenue in 2012 is currently projected to be relatively flat as compared to the prior year’s second quarter amount of $1.334 billion. The Company currently estimates that the second quarter 2012 effective tax rate will be 26.5 per cent to 27.0 per cent. On a non-GAAP basis, earnings per share for the second quarter are currently projected to be in the range of $1.18 to $1.20, an increase of 10 per cent to 12 per cent over $1.07 in the prior year’s second quarter.

PVH Corp started in1881 has its roots in selling and mending shirts for miners in Pottsville, PA and its 1920's introduction of the Van Heusen soft-folding collar. Its brands include Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW and Bass.