PVH Corp. (NYSE:PVH), better known as the Phillips-Van Heusen Corporation (its former name), announced its third quarter financial results yesterday after market close. The company reported a remarkable profit increase of 47% lead largely by its Tommy Hilfiger and Calvin Klein businesses. According to Chairman and Chief Executive Officer Emanuel Chirico, the global consumer demand for their Tommy Hilfiger and Calvin Klein brands has allowed them to expand their market share and global reach in the face of strong macroeconomic difficulties.
As noted above, third-quarter earnings rose 47% compared to the prior year quarter. For the quarter in progress, the company projects adjusted (non-GAAP) earnings of $1.48 to $1.49 per share and revenue growth of 4% to 5%; in spite of the adverse impact on the business of Hurricane Sandy in early November. Today, PVH shares gapped up almost 1% and have risen higher in early trading.
The company’s current full year earnings (non-GAAP) guidance forecasts a per share profit of $6.37 to $6.38. This would be an 18% to 19% increase over 2011.
In October, PVH agreed to buy Warnaco Group Inc., which also sells Calvin Klein products, for over $2.8 billion. In this earnings release, Mr. Chirico emphasized management’s commitment to closing the deal and said “As we highlighted when we announced the acquisition, this is a unique opportunity to reunite the “House of Calvin Klein” to ensure a single global brand vision. This acquisition also allows us to align our strong operating platforms in North America and Europe with Warnaco’s operations in Asia and Latin America, which will give the combined company strong established operations in every major consumer market worldwide.”