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Q1FY16 EPS on non GAAP basis surges 20% at PVH Corp
02 Jun '15
3 min read
Earnings per share on a non-GAAP basis at apparel marketer PVH Corp which owns brands like Calvin Klein and Tommy Hilfiger surged 20 per cent year over year for the first fiscal quarter ended May 3, 2015.
Earnings per share on a non-GAAP basis for the first quarter of fiscal 2016 was $1.77 or an increase of 20 per cent compared to the prior fiscal’s first quarter earnings per share on a non-GAAP basis of $1.47.
Inclusive of a $0.27 negative impact primarily related to foreign currency exchange rates, earnings per share amounted to $1.50 on a non-GAAP basis.
While, GAAP earnings per share totaled $1.37 for the reporting quarter as against $0.42 for the first fiscal quarter ended May 4, 2015.
Revenue rose much slower at 3 per cent year on year on a constant currency basis to $1.96 billion, but fell 4 per cent on a GAAP basis. .
Calvin Klein business rose 5 per cent on constant currency basis, but dipped 2 per cent on GAAP basis and Tommy Hilfiger grew 1 per cent on constant currency basis, however was down 11 per cent on GAAP basis.
Earnings before interest and taxes on a non-GAAP basis was up 8 per cent over the $203 million the apparel marketer posted in the first quarter of fiscal 2015.
“This was due, principally to strong performance in the Calvin Klein business and an improvement in the Heritage Brands business,” PVH explained in a press release.
Partially offsetting these increases was a 6 per cent decline on a constant currency basis and 20 per cent decrease from foreign currency exchange rate impacts in the Tommy Hilfiger business.
Additionally, PVH bore a $3 million hike in corporate expenses attributable to associate-related benefits, primarily driven by pension expense.
Earnings before interest and taxes on a GAAP basis was $177 million in the first quarter of fiscal 2016 compared to $85 million in the prior fiscal’s first quarter.
“The increase was primarily due to the absence in 2015 of $93 million of debt modification and extinguishment costs and a reduction in Warnaco integration and restructuring cost,” the apparel marketer said.
Net interest expense decreased to $30 million in the quarter under review from $41 million in the same quarter from the earlier fiscal first quarter from lower average debt balances and interest rates.
The effective tax rate came to 25.0 per cent on a non-GAAP basis, which was flat from the corresponding quarter of previous fiscal.
However on a GAAP basis, the effective tax rate increased to 22.4 per cent from 19.7 per cent in the three months to May 4, 2014.
The Company’s board of directors has authorised a $500 million three-year stock repurchase program.
Stock repurchases under this program may be made through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods. (AR)
Earnings per share on a non-GAAP basis for the first quarter of fiscal 2016 was $1.77 or an increase of 20 per cent compared to the prior fiscal’s first quarter earnings per share on a non-GAAP basis of $1.47.
Inclusive of a $0.27 negative impact primarily related to foreign currency exchange rates, earnings per share amounted to $1.50 on a non-GAAP basis.
While, GAAP earnings per share totaled $1.37 for the reporting quarter as against $0.42 for the first fiscal quarter ended May 4, 2015.
Revenue rose much slower at 3 per cent year on year on a constant currency basis to $1.96 billion, but fell 4 per cent on a GAAP basis. .
Calvin Klein business rose 5 per cent on constant currency basis, but dipped 2 per cent on GAAP basis and Tommy Hilfiger grew 1 per cent on constant currency basis, however was down 11 per cent on GAAP basis.
Earnings before interest and taxes on a non-GAAP basis was up 8 per cent over the $203 million the apparel marketer posted in the first quarter of fiscal 2015.
“This was due, principally to strong performance in the Calvin Klein business and an improvement in the Heritage Brands business,” PVH explained in a press release.
Partially offsetting these increases was a 6 per cent decline on a constant currency basis and 20 per cent decrease from foreign currency exchange rate impacts in the Tommy Hilfiger business.
Additionally, PVH bore a $3 million hike in corporate expenses attributable to associate-related benefits, primarily driven by pension expense.
Earnings before interest and taxes on a GAAP basis was $177 million in the first quarter of fiscal 2016 compared to $85 million in the prior fiscal’s first quarter.
“The increase was primarily due to the absence in 2015 of $93 million of debt modification and extinguishment costs and a reduction in Warnaco integration and restructuring cost,” the apparel marketer said.
Net interest expense decreased to $30 million in the quarter under review from $41 million in the same quarter from the earlier fiscal first quarter from lower average debt balances and interest rates.
The effective tax rate came to 25.0 per cent on a non-GAAP basis, which was flat from the corresponding quarter of previous fiscal.
However on a GAAP basis, the effective tax rate increased to 22.4 per cent from 19.7 per cent in the three months to May 4, 2014.
The Company’s board of directors has authorised a $500 million three-year stock repurchase program.
Stock repurchases under this program may be made through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods. (AR)
Fibre2fashion News Desk - India
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