Overview of Third Quarter Results:
-Earnings per share was $2.30 on a non-GAAP basis, which exceeded the Company’s guidance of $2.25. The prior year’s third quarter non-GAAP earnings per share was $2.38.
-GAAP earnings per share was $2.37 as compared to the prior year’s third quarter earnings per share of $2.27.
- Revenue increased 38% to $2.259 billion, as compared to the prior year’s third quarter. The increase over the prior year was principally driven by the addition of approximately $503 million of revenue related to the Warnaco businesses acquired early in 2013, net of the reduction in licensing revenue attributable to Warnaco.
Also contributing to the increase was revenue growth of $87 million, or 10%, in the Tommy Hilfiger business and $55 million, or 19%, in the pre-acquisition Calvin Klein businesses. Partially offsetting these increases was a revenue decrease of $29 million, or 6%, in the pre-acquisition Heritage Brands business.
Third Quarter Business Review:
Due to the 53rd week in 2012, third quarter 2013 comparable store sales are more appropriately compared with the thirteen week period ended November 4, 2012. All comparable store sales discussed in this release are presented on this shifted basis.
Revenue in the Calvin Klein business increased $480 million to $800 million from $320 million in the prior year’s third quarter. $425 million of the increase was attributable to the Warnaco businesses acquired, net of the reduction in licensing revenue attributable to Warnaco. Also driving the revenue increase was strong performance in the North America businesses due to a 3% comparable store sales increase, retail square footage expansion and a double-digit increase in the wholesale sportswear business.
The North America underwear business exceeded expectations, while the North America jeans business continued to underperform as the Company works to clear inventory and focus on the redesign and repositioning of its offerings in that product category. Calvin Klein International comparable store sales decreased 1%.
The Calvin Klein businesses in Brazil and Asia continued to perform well and exceed expectations, while the European business continued to underperform. Within Asia, the China business exhibited solid growth and the Korea business, although down compared to the prior year, showed improving trends over previous quarters. The Calvin Klein business in Europe remains under pressure primarily due to the Company’s current initiative to restructure the sales distribution mix in this region and its concentration in Southern Europe.
Click here to read full results
Textiles | On 29th Apr 2017
The net sales of Unifi Inc., one of the world's leading innovators in ...
Apparel/Garments | On 29th Apr 2017
The forecast for operating income growth in the US over the next 12...
‘As a brand, Puma is always looking for new and innovative ways to inspire ...
Dolphin Jingwei Machines
Taxation policies need to be made simpler
ITME is an occasion not only to receive new leads but also to work on...
Bombay Textile Research Association
Bombay Textile Research Association (BTRA) is a leading name in textile...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
"You have to truly understand what your client wants, know her needs, what ...
Golfwear and menswear brand Devereux is set for greener pastures. Robert...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Apparel/Garments | On 28th Apr 2017