PVH Corp. on Wednesday revealed it made a loss in second quarter trading following the acquisition of the Warnaco Group in February this year. The Tommy Hilfiger, Calvin Klein and Speedo owner fell into a second-quarter loss of USD 16 million after the Warnaco deal offset a rise in sales.
PVH Corp., owner of the Calvin Klein and Tommy Hilfiger brands, has said it will acquire Warnaco Group in a deal thought to be valued at USD 2.9 billion. According to WWD, the acquisition will see PVH become one of the largest global branded lifestyle apparel companies, with a portfolio that will reunite Calvin Klein’s entire business, as well as the Van Heusen, Bass, Speedo, Olga and Warner’s brands.
The Calvin Klein, Speedo and Chaps owner saw strong sales in Asia and Latin America offset a weaker performance in Europe and the US. Net revenues for the group fell 5 per cent in the second quarter ending 30 June 2012 to USD 563.9 million, as its gross margin fell 130 basis points to 42 per cent of net revenues.
The Calvin Klein, Warner’s and Speedo owner on Thursday lowered its 2012 forecast after reporting first quarter net income dropped 18 per cent, falling to USD 35.9 million, or 86 cents a share, for the period ending 31 March. The results compare with net income of USD 44 million, or 97 cents a share, from a year before.
Warnaco Group Inc reported Monday second quarter net income up 52 per cent, raising its full-year outlook for the second time this year.
The company reported earnings of USD 45.4 million, or USD 1.01 per share for the quarter as its sales and profitability improved. The results were an impressive USD 29.9 million higher than the same quarter last year, improving 65 cents per share.
Strong international sales saw Warnaco revenue rise 14 per cent to USD 591.4 million. The Speedo, Olga and Chaps owner saw increased demand for its Calvin Klein brand across Asia and Latin America.
For the second consecutive quarter Warnaco has been able to raise its expected earnings of USD 4 to USD 4.15 per share for the year, up from prior forecasts of USD 3.95 to USD 4.15.
The Calvin Klein, Speedo and Chaps owner raised its forecast for the fiscal year yesterday, with sportswear sales up 10.8 percent.
For the three months ending 2 April income was USD 44 million, or 97 cents a share, down from USD 48 million, or USD 1.02 a share from last year. The Warnaco Group attributed the decline to a 20 percent rise in expenses for the firm, following its expansion of the CK One business as a lifestyle brand.
Along with sportswear, intimate apparel sales saw positive results with a 13.9 percent increase to USD 221 million, while swimwear sales jumped 15.7 percent to USD 101.7 million.
Warnaco’s biggest areas for growth were Mexico, Central and South America, where revenues rose 37.8 percent to USD 51.7 million. Asia came in second place with revenues up 30.9 percent to USD 126.8 million.
“Calvin Klein revenues increased 13 percent, international revenues were up 19 percent and we increased our direct-to-consumer revenues 36 percent.” Joe Gromek, Warnaco’s president and chief executive told press.
Warnaco raised its guidance for fiscal year 2011, expecting adjusted diluted earnings per share from continuing operations in the range of USD 3.95 to USD 4.15, from an earlier estimate of USD 3.85 to USD 4.15
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