56% profit jump for PVH Corp in 4Q

Apparel maker PVH Corp. (PVH) revealed Tuesday after the markets closed that its fourth quarter profit jumped 56% from last year, thanks to strong performance of its Tommy Hilfiger and Calvin Klein businesses."Our Calvin Klein and Tommy

 Hilfiger businesses continued to demonstrate their power and ability to drive double-digit growth both domestically and internationally, and today represent approximately three quarters of our business," Emanuel Chirico, PVH Chairman and Chief Executive Officer, said late Tuesday.
 
Total revenue for the fourth quarter rose 10% to $1.53 billion from $1.40 billion in the same quarter last year, helped by strong growth in Tommy Hilfiger and Calvin Klein businesses, partially offset a decline in the Heritage Brands business. Eleven analysts had a consensus revenue estimate of $1.50 billion for the fourth quarter.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations, reported ’Market Watch’. Nevertheless, the group´s forecast first quarter earnings lower than analysts' expectations, but raised its earnings forecast for the full year 2012.
 
Revenue for the company's Calvin Klein business rose 12% to $278.5 million in the fourth quarter, with retail same-store sales growth of 18%.
 
Meanwhile, fourth quarter revenue from the Tommy Hilfiger business - acquired in May 2010-, surged 16% year-over-year to $815.8 million, with retail same-store store sales growth of 15% in North America and 16% internationally. The European wholesale division also experienced low double-digit growth.
 
The downside was Heritage Brands’ fall in revenue by 1% to $438.5 million in the fourth quarter, driven by a 17% decrease in the wholesale sportswear business due mainly to underperformance in the Izod business, the company reported in a statement.
 
For the fourth quarter ended January 29, 2012, the New York-based company, which was formerly known as Phillips-Van Heusen Corp. and changed its name to PVH Corp. in June 2011, reported net income of $81.2 million or $1.11 per share, compared to $52.2 million or $0.72 per share for the year-ago quarter.
 
Excluding items, adjusted net income for the fourth quarter was $86.1 million or $1.18 per share, compared to $67.5 million or $0.93 per share in the prior year quarter.
 
On average, 15 analysts polled by Thomson Reuters expected the company to earn $1.10 per share for the fourth quarter. Analysts' estimates typically exclude special items.
 
Looking forward, the company expects first quarter revenue to grow 1% to 2% over the prior year's first quarter amount of $1.369 billion, which implies first quarter 2012 revenue of $1.383 billion to $1.396 billion.
 
The company also forecast first quarter earnings of $1.08 to $1.10 per share and adjusted earnings of $1.23 to $1.25 per share. On the other hand, analysts currently expect the company to earn $1.32 per share on revenue of $1.43 billion for the first quarter.
 
2012 FY revenue to be up to 2%
 
For the full year 2012, the company now forecasts earnings of $5.80 to $5.90 per share and adjusted earnings of $6.10 to $6.20 per share. In January, the company issued preliminary full year 2012 estimate for earnings of $5.65 to $5.75 per share and adjusted earnings of $5.90 to $6.00 per share. Last month, the company had projected full year earnings to at least meet the high end of its prior forecast of $5.90 to $6.00 per share. Analysts currently expect the company to earn $6.03 per share for the full year 2012.
 
The company expects the 2012 earnings growth to be heavily weighted toward the second half of the year, as earnings in the first half are expected to be impacted by significantly higher product costs.
 
Revenue in 2012 is currently expected to be relatively flat to up 2% as compared to the 2011 level.
 
"Despite the uncertainty that has been impacting the overall market, we are optimistic that the strength of our brands, driven by Calvin Klein and Tommy Hilfiger, will continue to generate solid revenue and profitability growth in 2012," said Chirico.