* Q3 adj EPS $2.34 VS EST $2.30
* Q3 gross margins up 260 basis points
* Raises FY EPS view to $6.37-$6.38 a share
Nov 27 Clothing maker PVH Corp posted a
bigger quarterly profit on Tuesday despite a slight drop in
sales as its higher margin Calvin Klein and Tommy Hilfiger
businesses grew faster, and its shares gained one percent in
The company, which recently bought The Warnaco Group to
unite the Calvin Klein underwear, jeans and sportswear lines,
also raised its full year profit view.
PVH now expects to make between $6.37-$6.38 a share for the
year. In August, the company said it expected to earn between
New York-based PVH, which shortened its name from
Phillips-Van Heusen Corp last year, also markets or owns brands
like IZOD and Van Heusen.
It bought Tommy Hilfiger from Apax Partners in 2010 in a $3
billion cash-and-stock deal to boost its presence in Europe and
"The worldwide consumer appeal for Calvin Klein and Tommy
Hilfiger has allowed us to successfully expand our market share
penetration and global reach of our designer lifestyle brands,
despite the macroeconomic headwinds," Chief Executive Emanuel
Chirico said in a statement.
For the third quarter ended Oct. 28, the company, earned
$165.41 million, or $2.24 a share, up from $112.24 million, or
$1.54 a share, a year earlier.
Gross margins rose 260 basis points, triggered by the
higher-margin Calvin Klein and Tommy Hilfiger businesses growing
faster, the company said.
That, combined with higher selling prices and falling
manufacturing costs helped bolster margins further.
After adjusting for expenses attached to the integration of
Tommy Hilfiger and related restructuring, the company earned
$2.34 a share.
On that basis, analysts, on average, were expecting the
company to earn $2.30 a share, according to Thomson Reuters
Revenue came in at $1.64 billion, compared with $1.65
billion a year earlier.
Shares of the company closed at $109.29 Tuesday on the New
York Stock Exchange, ahead of the results. In after-hours trade
they climbed to $110.42.