For Q2, PVH reports non-GAAP EPS of 1.25 dollarsTuesday, 28 August 2012
In the second quarter earnings per share were 1.25 dollars on a non-GAAP basis, which exceeded the company’s guidance and represents a 17 percent increase over the prior year period’s non-GAAP earnings per share of $1.07. GAAP earnings per share were 1.19 dollars and represent a 29 percent increase over the prior year period’s GAAP earnings per share of 0.92 dollars.
Revenue of 1.337 billion dollars was relatively flat as compared to the prior year period and was negatively impacted by 56 million dollars, or 4 percent, attributable to foreign currency translation (41 million dollars) and the exit from the Izod women’s and Timberland wholesale sportswear businesses (15 million dollars). On a constant currency basis, and excluding the impact of exited businesses, revenue increased 4 percent.
Revenue in the Tommy Hilfiger business increased 4 percent over the prior year’s second quarter to 721.9 million dollars, including a negative impact of 39 million dollars, or 6 percent, related to foreign currency translation. The Calvin Klein business posted a 5 percent increase in revenue to 251.2 million dollars from 239.9 million dollars in the prior year’s second quarter. Comparable store sales for the company’s North American Calvin Klein outlet retail business grew 5 percent in the quarter.
Second quarter consolidated earnings on a non-GAAP basis, before interest and taxes, increased to 154.2 million dollars from 151.4 million dollars in the prior year’s second quarter, including a negative impact of 6 million dollars related to foreign currency translation and a 5.2 million dollars increase in corporate expenses due principally to an increase in pension expense resulting from a decrease in discount rates. The overall increase in non-GAAP earnings before interest and taxes was driven by an increase of 21.6 million dollars in the Tommy Hilfiger business. This increase was partially offset by earnings decreases of 7.7 million dollars in the Heritage Brands business and 5.8 million dollars in the Calvin Klein business.
Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “Our better than expected second quarter results reflect the continued momentum and ongoing operating efficiencies across our business model. The exceptional performance of Tommy Hilfiger allowed us to exceed our earnings expectations, despite the cost pressures and the economic uncertainty that have impacted the global marketplace. In addition, Calvin Klein continued to post solid revenue increases in the quarter despite the soft performance of the global jeans and underwear businesses.”