PVH Profit Tops Estimate

(RTTNews) - Apparel maker PVH Corp. (PVH) said Tuesday after the markets closed that it swung to a fourth quarter loss, hurt mainly by a hefty tax expense attributable to an increase to the company's previously-established liability for an uncertain tax position related to European and U.S. transfer pricing arrangements.

However, the company's quarterly earnings per share, excluding items, came in above Wall Street expectations, but its quarterly revenue fell shy of analysts' forecast.

At the same time, the company forecast first quarter and fiscal year 2014 earnings below analysts' current consensus estimates.

Emanuel Chirico, PVH Chairman and Chief Executive Officer, said, "We are pleased with our 2013 fourth quarter results, which exceeded our previous guidance for earnings per share, despite the difficult retail environment. Our pre-acquisition Calvin Klein and Tommy Hilfiger businesses performed well and continued to demonstrate their significant global growth prospects."

PVH shares are currently gaining 0.65% in after hours trading after closing the day's regular trading session at $117.25, down $2.04 or 1.71%. The shares trade in a 52-week range of $102.72 to $138.94.

Fourth quarter revenue from the company's Tommy Hilfiger business, which was acquired in May 2010, rose 1% year-over-year to $902 million, with Tommy Hilfiger North America business relatively flat with last year and Tommy Hilfiger International business up 2%.

Revenue for the company's Calvin Klein business jumped 117% to $688 million in the fourth quarter, driven mainly by the Warnaco acquisition. PVH completed the acquisition of its former licensee Warnaco Group, Inc on February 13, 2013.

Total revenue for the Heritage Brands business increased 8% to $462 million in the fourth quarter, due mainly to the addition of $115 million of revenue related to Warnaco's Speedo swimwear and Warner's and Olga women's intimate apparel businesses.

For the fourth quarter ended February 2, 2014, the New York-based company, which was formerly known as Phillips-Van Heusen Corp. and changed its name to PVH Corp. in June 2011, reported a net loss of $37.5 million or $0.46 per share, compared to net income of $80.7 million or $1.09 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $119.0 million or $1.43 per share, compared to $118.5 million or $1.60 per share in the prior year quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to earn $1.42 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Total revenue for the fourth quarter rose 25% to $2.05 billion from $1.64 billion in the same quarter last year. Sixteen analysts had a consensus revenue estimate of $2.07 billion for the fourth quarter.

Looking forward to the first quarter, the company forecasts revenue of about $2.0 billion and adjusted earnings of $1.45 to $1.50 per share. Analysts currently expect the company to earn $1.70 per share on revenue of $1.99 billion for the first quarter.

For the fiscal year 2014, the company forecasts revenue of about $8.5 billion and adjusted earnings of $7.40 to $7.50 per share. Analysts currently expect the company to earn $7.81 per share on revenue of $8.60 billion for the fiscal year 2014.