(Filed Under Adult News). PVH third quarter sales and earnings rose as most parts of the company performed well, including Calvin Klein underwear and intimates and its Warner’s brand.
Chairman and CEO Emanuel Chirico did, however, complain, about certain Calvin Klein apparel products. In the conference call with analysts to discuss the quarter he noted, “we are disappointed by the lack of return on our investments in our Calvin Klein 205 W39 NYC halo business and believe that some of the Calvin Klein Jeans relaunched product was too elevated and did not sell through as well as we planned.”
Overall the company earned $242.6 million on sales of $2.377 billion in the three months ended November 4, compared to $238.7 million on sales of $2.220 billion in the quarter ended October 29, 2017.
Chirico spent most of the call discussing other parts of the company, but did emphasize, when speaking of Calvin Klein, “the crown jewel of our portfolio is our men’s underwear and women’s intimates business and that business is just off the charts and you can’t help but walk in the store and just recognize that.”
Elsewhere he added, speaking of two Warner’s products, “the new technologies we have added to our core intimates business are also driving solid results as our consumers love key franchises like our Wire-Free Easy Does It bra and our Cloud 9 Collection.”
Overall, Chirico boasted, “we are pleased with the strong earnings performance in the third quarter, which exceeded our expectations, driven by the power of our diversified global business model. We continue to over-deliver against our 2018 plan and are raising our full year earnings outlook based on our third quarter out-performance and our confidence in the opportunities for the fourth quarter, despite recent retailer bankruptcies in the U.S. and U.K. and increasing geopolitical volatility around the world.” The bankruptcies he pointed to were Sears and House of Fraser in the UK.
Looking ahead to the full year, PVH stated “revenue in 2018 is projected to increase approximately 7%” on a constant currency basis, as compared to 2017. It added that “2018 earnings per share on a GAAP basis will be in a range of $9.10 to $9.12 compared to $6.84 in 2017.” —NM
The full conference call transcript can be found here: https://seekingalpha.com/article/4225696-pvh-corp-pvh-ceo-mike-shaffer-q3-2018-results-earnings-call-transcript?page=1
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