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Apparel firm PVH increases fourth quarter guidance
12 Jan '12
4 min read
PVH Corp announced that, in conjunction with presentations to be given tonight and tomorrow by Company management at the ICR XChange Conference, it is updating its previous earnings per share guidance for the fiscal year ending January 29, 2012 and providing preliminary earnings per share guidance for the fiscal year ending February 3, 2013.
Non-GAAP earnings per share for the full year 2011 is now estimated to be in a range of $5.28 to $5.30, as compared to the previous non-GAAP guidance of $5.23 to $5.25. GAAP earnings per share for the full year 2011 is estimated to be in a range of $4.10 to $4.12, as compared to the previous GAAP guidance of $4.05 to $4.07.
Non-GAAP earnings per share for the fourth quarter of 2011 is now estimated to be in a range of $1.08 to $1.10, as compared to the previous non-GAAP guidance of $1.03 to $1.05. GAAP earnings per share for the fourth quarter of 2011 is estimated to be in a range of $0.85 to $0.87, as compared to the previous GAAP guidance of $0.80 to $0.82.
The Company's updated guidance reflects the continuation of strong performance in the Calvin Klein and Tommy Hilfiger businesses, which was partially offset by softness in the Heritage Brands sportswear businesses.
Fourth quarter of 2011 retail comparable store sales are expected to increase as compared to the prior year's fourth quarter by 15% in the Calvin Klein business, 12% in the Tommy Hilfiger North America business, 12% in the Tommy Hilfiger International business and 4% in the Heritage Brands business.
The full year effective income tax rate for 2011 is expected to be in a range of 28.5% to 29.0% on a non-GAAP basis and 29.5% to 30.0% on a GAAP basis, which represents an improvement of approximately $0.02 per share as compared to the Company's prior guidance of 29.0% to 29.5% on a non-GAAP basis and 30.0% to 30.5% on a GAAP basis.
Earnings per share for 2012 on a non-GAAP basis is preliminarily estimated to be in a range of $5.90 to $6.00. This estimate is negatively impacted by approximately $0.25 per share as compared to 2011 estimates due to projected differences in 2012 foreign currency translation (principally related to an expected weaker Euro to United States dollar exchange rate as compared to 2011).
Pension expense is expected to increase for the full year 2012 as compared to 2011 by approximately $0.15 per share, due in large part to a decrease in discount rates. Advertising spending for the full year 2012 is expected to approximate 2011 levels. Anticipated debt payments of approximately $300 million in 2012, combined with debt payments made during 2011, are expected to result in a decrease to net interest expense of approximately $0.10 per share as compared to 2011.
The effective income tax rate for the full year 2012 is expected to decrease to approximately 25.5%, which would generate an improvement on a non-GAAP basis of approximately $0.25 per share as compared to 2011. The lower tax rate in 2012 is due principally to growth in Tommy Hilfiger's international business, which is generally taxed at lower rates.
Non-GAAP earnings per share for the full year 2011 is now estimated to be in a range of $5.28 to $5.30, as compared to the previous non-GAAP guidance of $5.23 to $5.25. GAAP earnings per share for the full year 2011 is estimated to be in a range of $4.10 to $4.12, as compared to the previous GAAP guidance of $4.05 to $4.07.
Non-GAAP earnings per share for the fourth quarter of 2011 is now estimated to be in a range of $1.08 to $1.10, as compared to the previous non-GAAP guidance of $1.03 to $1.05. GAAP earnings per share for the fourth quarter of 2011 is estimated to be in a range of $0.85 to $0.87, as compared to the previous GAAP guidance of $0.80 to $0.82.
The Company's updated guidance reflects the continuation of strong performance in the Calvin Klein and Tommy Hilfiger businesses, which was partially offset by softness in the Heritage Brands sportswear businesses.
Fourth quarter of 2011 retail comparable store sales are expected to increase as compared to the prior year's fourth quarter by 15% in the Calvin Klein business, 12% in the Tommy Hilfiger North America business, 12% in the Tommy Hilfiger International business and 4% in the Heritage Brands business.
The full year effective income tax rate for 2011 is expected to be in a range of 28.5% to 29.0% on a non-GAAP basis and 29.5% to 30.0% on a GAAP basis, which represents an improvement of approximately $0.02 per share as compared to the Company's prior guidance of 29.0% to 29.5% on a non-GAAP basis and 30.0% to 30.5% on a GAAP basis.
Earnings per share for 2012 on a non-GAAP basis is preliminarily estimated to be in a range of $5.90 to $6.00. This estimate is negatively impacted by approximately $0.25 per share as compared to 2011 estimates due to projected differences in 2012 foreign currency translation (principally related to an expected weaker Euro to United States dollar exchange rate as compared to 2011).
Pension expense is expected to increase for the full year 2012 as compared to 2011 by approximately $0.15 per share, due in large part to a decrease in discount rates. Advertising spending for the full year 2012 is expected to approximate 2011 levels. Anticipated debt payments of approximately $300 million in 2012, combined with debt payments made during 2011, are expected to result in a decrease to net interest expense of approximately $0.10 per share as compared to 2011.
The effective income tax rate for the full year 2012 is expected to decrease to approximately 25.5%, which would generate an improvement on a non-GAAP basis of approximately $0.25 per share as compared to 2011. The lower tax rate in 2012 is due principally to growth in Tommy Hilfiger's international business, which is generally taxed at lower rates.
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