As compared to the prior fiscal's fourth quarter, revenue surged 21 per cent in the Calvin Klein business on a constant currency basis and 15 per cent on a GAAP basis in the fourth quarter of fiscal 2016.
“While the Tommy Hilfiger business rose slower at 5 per cent on a constant currency basis, but decreased 2 per cent on a GAAP basis,” the company informed in a press release.
However, sales in the Heritage Brands business dropped 10 per cent year on year on a GAAP basis, driven primarily by the exit from the Izod retail business.
Earnings per share for the reporting quarter was $1.52 on a non-GAAP basis, inclusive of a $0.36 negative impact compared to the prior fiscal primarily related to foreign currency exchange rates.
Earnings per share on a non-GAAP basis excluding such negative impact was $1.88, or an increase of 7 per cent compared to the prior fiscal's fourth quarter earnings per share of $1.76 on a non-GAAP basis.
Earnings per share for the quarter under review were $1.63 on a GAAP basis as against $0.62 for the previous fiscal's fourth quarter.
The company currently expects its first quarter of fiscal 2017 earnings per share results will be negatively impacted compared to the first quarter of fiscal 2016.
“This is expected to be around $0.50 per share attributable to foreign currency exchange rates due to the stronger US dollar against other currencies in which we transacts significant levels of business,” PVH said.
First quarter of fiscal 2017 earnings per share is currently projected to be in a range of $1.40 to $1.45 on a non-GAAP basis, which includes the negative impact related to foreign currency exchange rates.
Excluding this negative impact, earnings per share is expected to increase 27-30 per cent on a non-GAAP basis compared to earnings per share of $1.50 on a non-GAAP basis in the first quarter of fiscal 2016.
PVH projected revenue in the first quarter to increase approximately 3 per cent on a constant currency basis and approximately 1 per cent on a GAAP basis.
The company projected that net interest expense will be in a range of $28 million to $30 million and that the first quarter effective tax rate will be in a range of 23-24 per cent.
The company repurchased approximately 0.6 million shares for $51 million in the fourth quarter of fiscal 2016 under the $500 million three-year stock repurchase program authorised by its board in June 2015.
CEO Emanuel Chirico said, “We are very pleased with our fourth quarter and full fiscal results, which exceeded our expectations despite the difficult macroeconomic environment.”
“Our Calvin Klein business was a highlight, as investments we made over the last few years continued to generate solid results, and we saw strength across all regions where we operate,” he added. (AR)
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