Boston, MA 03/26/2014 (wallstreetpr) – PVH Corp (NYSE:PVH) swung into a net loss of $37.5 million in the fourth quarter of 2013 as a result of costs incurred in the acquisition of Warnaco Group. Net loss for the period ending February 2, 2014 was partially offset by an increase in net sales as result of the new acquisitions.
The company’s chief executive officer was quick to point out that 2013 was a transformational year marked by the acquisition Warnaco and the sale of Basis retail business. These strategic actions are expected to strengthen the company’s long-term position as it strives to deliver impressive financial returns in 2014.
PVH Fourth Quarter Exceeded Expectations
The fourth quarter despite registering a net loss was able to exceed earlier set estimates amidst the harsh retail environment. New acquisitions in the name of Calvin Klein and Hilfiger continued to perform well demonstrating solid growths in net sales.
PVH Business Segments Review
Calvin Klein continued to register increased sale in Asia and Brazil, netting total revenues amounting to $688.4 million up from $317.4 million a year ago. This segment slightly struggled in North America and Europe markets, with the company promising to do all that is necessary in a bid of driving future profitability.
Tommy Hilfiger business on the other hand grew by 1% registering total revenues of $902 million for the quarter, up from $891 million for the same period last year. The relative flat revenue for the year, for this segment was as a reflection of flat retail store sales combined with the one week less of sale in 2013.
Heritage business segment also reported a surge of 8% in total revenue clocking in at highs of $461.9 million compared to $427.7 million reported in 2012 same period. The rise in revenue for this segment was due to the acquisition of Speedo swim products which contributed a huge chunk of sales. Revenue for this segment was also impacted by 7% decline in comps and loss of revenue from the closure of underperforming stores.
PVH 2014 Outlook
PVH Corp (NYSE:PVH) expects the current year to be impacted by incremental investments towards the newly acquired businesses as well as negative foreign currency movements. Full year adjusted earnings are expected to stream in the range of between $7.40 and $7.50, an improvement of 5%-7%.
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