PVH forecasts weak 2013 profit after Warnaco integration drags
(Reuters) - PVH Corp (PVH.N) forecast 2013 profit well short of Wall Street estimates as the clothing maker now expects its acquisition of Warnaco to drag on earnings this year due to the additional time needed to complete the integration.
PVH shares fell 5 percent in trading after the bell. They closed at $112.79 on the New York Stock Exchange on Wednesday.
The maker of Calvin Klein jeans said it now expects the deal to hurt 2013 adjusted earnings by 25 cents as a result of the delay in realizing some of the projected savings.
The company said in October that the $2.8 billion deal would add 35 cents to its 2013 earnings.
PVH now estimates that annual synergies of about $100 million will be realized over four years, rather than the three originally estimated.
The company forecast 2013 earnings, excluding one-time items, of about $7.00 per share. Analysts on average were expecting earnings of $7.40 per share, according to Thomson Reuters I/B/E/S.
New York-based PVH also reported adjusted earnings of $1.54 per share on revenue of $1.64 billion for the fourth quarter ended February 3. Analysts had expected earnings of $1.50 per share on revenue of $1.60 billion.
(Reporting by Juhi Arora in Bangalore; Editing by Sriraj Kalluvila)