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EBIT soars 85% at fashion retailer PVH in Q2
05 Sep '14
2 min read
EBIT on a GAAP basis soared just a shade under 85 percent year-on-year in the second quarter of 2014 at fashion retailer PVH Corp, which has iconic brands like Tommy Hilfiger and Calvin Klein in its portfolio.
In the second quarter of 2014, PVH reported a near 85 percent leap in EBIT on a GAAP basis to $159 million as compared to $86 million in the prior year’s second quarter.
PVH attributed the rise primarily to a decline in acquisition, integration and restructuring costs as compared to the second quarter of 2013, partially offset by the investments and gross margin decline.
The massive surge in EBIT also resulted in PVH posting GAAP earnings per share of $1.52 as compared to second quarter of 2013 loss per share of $0.07.
During the quarter under review, revenues amounted to $1.98 billion, up 4% from a year earlier quarter, by excluding $62 million of revenue related to Bass business, which was sold during the fourth quarter of 2013, PVH said.
Sales rose 9% at the Tommy Hilfiger business and 1% in the Calvin Klein division, while they stayed flat from last year’s second quarter at its Heritage Brands business.
Net interest expense fell to $34 million in the second quarter of 2014 from $47 million in the prior year’s second quarter, which PVH said was due to lower average debt balances, combined with effect of restatement of its credit facility during the first quarter.
PVH CEO Emanuel Chirico said, “We believe that the strategic investments made during 2013 and 2014, along with our strong balance sheet and continued debt repayment, will enable us to capitalize on long term global growth opportunities and deliver stockholder value.”
He continued, “We believe we are well-positioned to achieve earnings per share growth on a non-GAAP basis in excess of 15% for the second half of the year”. (AR)
In the second quarter of 2014, PVH reported a near 85 percent leap in EBIT on a GAAP basis to $159 million as compared to $86 million in the prior year’s second quarter.
PVH attributed the rise primarily to a decline in acquisition, integration and restructuring costs as compared to the second quarter of 2013, partially offset by the investments and gross margin decline.
The massive surge in EBIT also resulted in PVH posting GAAP earnings per share of $1.52 as compared to second quarter of 2013 loss per share of $0.07.
During the quarter under review, revenues amounted to $1.98 billion, up 4% from a year earlier quarter, by excluding $62 million of revenue related to Bass business, which was sold during the fourth quarter of 2013, PVH said.
Sales rose 9% at the Tommy Hilfiger business and 1% in the Calvin Klein division, while they stayed flat from last year’s second quarter at its Heritage Brands business.
Net interest expense fell to $34 million in the second quarter of 2014 from $47 million in the prior year’s second quarter, which PVH said was due to lower average debt balances, combined with effect of restatement of its credit facility during the first quarter.
PVH CEO Emanuel Chirico said, “We believe that the strategic investments made during 2013 and 2014, along with our strong balance sheet and continued debt repayment, will enable us to capitalize on long term global growth opportunities and deliver stockholder value.”
He continued, “We believe we are well-positioned to achieve earnings per share growth on a non-GAAP basis in excess of 15% for the second half of the year”. (AR)
Fibre2fashion News Desk - India
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