Tommy Hilfiger and Calvin Klein perform well in Q3

PVH Corp. reported a good performance by Tommy Hilfiger

and Calvin Klein in the third quarter 2012 results. Earnings per share were 2.34 dollars on a non-GAAP basis, which exceeded the company’s guidance and represents a 24 percent increase over the prior year period’s non-GAAP earnings per share of 1.89 dollars. GAAP earnings per share were 2.24 dollars and represent a 45 percent increase over the prior year period’s GAAP earnings per share of 1.54 dollars.

Revenue in the Tommy Hilfiger business increased 1 percent to 833.6 million dollars from 826.6 million dollars in the prior year’s third quarter. On a constant currency basis, Tommy Hilfiger revenue increased 6 percent. Within the Tommy Hilfiger North America business, revenue increased 8 percent, principally driven by retail comparable store sales growth of 9 percent. Revenue in the Tommy Hilfiger international business decreased 4 percent, due to a negative impact of 8 percent related to foreign currency translation. On a constant currency basis, revenue for the Tommy Hilfiger international business increased 4 percent.

On a non-GAAP basis, earnings before interest and taxes increased 10 percent to 250.4 million dollars from 227.3 million dollars in the prior year’s third quarter. On a GAAP basis, earnings before interest and taxes increased 21 percent to 237.4 million dollars as compared to 196.8 million dollars in the prior year’s third quarter. Net interest expense decreased 3.3 million dollars to 28.3 million dollars as compared to the prior year’s third quarter, due principally to lower debt levels in the current quarter.

In the nine months consolidated results earnings per share on a non-GAAP basis were 4.90 dollars as compared to 4.20 dollars for the prior year. GAAP earnings per share were 4.70 dollars as compared to 3.25 dollars for the prior year. Revenue increased 1 percent to 4.407 billion dollars. The overall increase in revenue was due to the net impact of a 4 percent, or 90.9 million dollars, increase in the Tommy Hilfiger business. A 6 percent, or 46.2 million dollars, increase in the Calvin Klein business, was driven primarily by a 7 percent increase in comparable store sales within the company’s Calvin Klein outlet retail business and an 8 percent increase in the North American wholesale business.

Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are very pleased with our third quarter and year-to-date performance, which was primarily driven by the Tommy Hilfiger and Calvin Klein businesses continuing to exhibit strong global growth, allowing us to exceed our previous earnings guidance. The Heritage Brands business saw some modest improvement in the quarter. The worldwide consumer appeal for Calvin Klein and Tommy Hilfiger has allowed us to successfully expand our market share penetration and global reach of our designer lifestyle brands, despite the macroeconomic headwinds.”