Home / Knowledge / News / Apparel/Garments / Warnaco acquisition helps PVH Corp boost Q1 revenues
Warnaco acquisition helps PVH Corp boost Q1 revenues
13
Jun '13
PVH Corp. reported 2013 first quarter results.

Highlights:

- First Quarter Non-GAAP EPS of $1.91 Significantly Exceeded Guidance of $1.33; GAAP Loss Per Share Was $(0.25)

- Company Reiterates Full Year 2013 Non-GAAP EPS Guidance of $7.00, Reflecting the Investments Needed to Restore and Drive Long-Term Growth of Acquired Businesses

Overview of First Quarter Results:

Earnings per share was $1.91 on a non-GAAP basis, which significantly exceeded the Company’s guidance, as compared to the prior year’s first quarter non-GAAP earnings per share of $1.33.

GAAP loss per share was $(0.25) as compared to the prior year’s first quarter GAAP earnings per share of $1.30, due to significant costs incurred in connection with the Company’s acquisition during the quarter of its former licensee, The Warnaco Group, Inc. (“Warnaco”), and with the related integration and restructuring, a significant portion of which was non-cash.

Revenue on a non-GAAP basis of $1.940 billion exceeded guidance by $40 million and increased 36% as compared to the prior year’s first quarter (which was in accordance with GAAP).

The increase was principally driven by the addition of approximately $487 million of revenue related to the newly acquired Warnaco businesses, net of a reduction in licensing revenue attributable to Warnaco from the prior year, and an increase of $41 million related to the Tommy Hilfiger business, partially offset by the loss of $28 million attributable to the Izod women’s and Timberland wholesale sportswear businesses, which the Company exited in 2012.

On a GAAP basis, revenue of $1.910 billion was $30 million lower than non-GAAP revenue due to sales returns for certain Warnaco wholesale customers in Asia in connection with an initiative to reduce excess inventory levels.

Segment Presentation

The acquisition of Warnaco has significantly impacted the way the Company manages and analyzes its operating results. Beginning with the first quarter, the Company changed how it discusses its business segments and results.

The Company aggregates its segments into three main businesses: (i) Calvin Klein, which now consists of the Calvin Klein North America and Calvin Klein International segments; (ii) Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments; and (iii) Heritage Brands, which now consists of the Heritage Brands Wholesale and Heritage Brands Retail segments, whose operations are in North America and now include the swimwear and women’s intimate apparel wholesale businesses acquired with Warnaco. Refer to Appendix A later in this release for a further discussion and the adjusted 2012 quarterly and annual revenue and earnings before interest and taxes by segment.

PVH Corp

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search