PVH, at double speed: revenue increases 2.5% but net income falls 13.9% in third quarter
The American fashion retailer, owner of Tommy Hilfiger and Calvin Klein, has concluded the third quarter of the year with a turnover of 7.5 billion dollars.
PVH closes the third quarter of the year at double speed. The American fashion retailer concluded this period with net income of 209.2 million dollars, 13.9% less than in the same period last year. The company’s turnover stands at 7.5 billion dollars.
The company explained that the results have shrunk due to the purchases made during this period, which include the acquisition of the joint venture with Gazal, the association with which the group operates in Australia. PVH revenues, on the other hand, have increased 2.5%: for the three months ended 3rd November, revenues went from 2.52 to 2.59 billion dollars.
Alongside, the company explained that it does not dismiss extending its portfolio through various acquisitions, as it announced weeks ago. “The financing market is in good shape right now”, said Emanuel Chirico, chief executive officer of the company, at the presentation of results.
PVH has acquired its business in Australia during this period
Tommy Hilfiger is the brand that has had a better development during this period, with a growth of 10%, reaching 1.2 billion dollars. Meanwhile, the company’s earnings before interest and taxes slipped to 182 million dollars from 183 million dollars due to gross margin pressure in North America.
Calvin Klein saw a more modest growth, with revenues rising by 1% to 969 million dollars, but earnings before interest and taxes jumped to 129 million dollars from 121 million dollars with gross margins improving as the brand focused in on its core offerings.
Chirico stated that they “are satisfied with the results for the third quarter, which have overcome their expectations in spite of the difficult market environment”. The executive explained that the political conflicts have affected the results in this period, especially the Hong Kong protests.
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