(Filed Under wholesale Lingerie News). PVH Corp. third quarter income fell to $126.2 million on total revenue of $2.244 billion, compared to income of $221.9 million on total revenue of $2.165 billion in the same quarter last year.
The company blamed the decline in income on “a $77 million non-cash loss related to the deconsolidation of a Mexican subsidiary,” as well as unfavorable currency exchange rates.
“We are very pleased with our strong performance in the third quarter, which exceeded our guidance on a non-GAAP basis despite the volatile macroeconomic environment,” declared Emanuel Chirico, chairman and CEO.
In the conference call to discuss the results with analysts, Chirico listed some recent developments in underwear. “Our full launch in tailored bras was Seductive Comfort with lace where we took our best-selling seductive comforts silhouette and added lace, and have seen a great reception to-date around the globe. We have also expanded our size scale offering in the U.S. to include extended sizes of size 40DDD. These additional size bands of 36 to 40 have the potential to represent 25% to 30% of our total U.S. bra business. This represents a significant market share opportunity for us going forward.”
Turning to Calvin Klein men’s underwear, he added “we introduced our Liquid Stretch product, which provided the utmost comfort in a great new innovative stretch fabric and takes advantage of the active trend that has happening the market.”
Talking about PVH as a whole, the CEO noted, “We continue to over deliver against our 2016 plan, driven in large part by strong momentum across our Calvin Klein and Tommy Hilfiger International businesses. While our North America wholesale businesses have performed well throughout the year, we have not experienced any significant improvement in traffic and consumer spending trends across our Tommy Hilfiger and Calvin Klein U.S. outlet stores located in international tourist locations.”
“Although we are increasing our non-GAAP earnings guidance for the year, we continue to take a prudent approach to planning the holiday season in light of the macroeconomic and geopolitical volatility around the world, as well as the strengthening dollar in the wake of the U.S. Presidential election. We believe that through the power of our designer lifestyle brands, Calvin Klein and Tommy Hilfiger, we can successfully navigate this uncertain environment.”
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