PVH: Tommy Hilfiger struggled in Europe this fall
PVH, parent company of Calvin Klein and Tommy Hilfiger, saw its net sales for the third quarter, ended on 1st November, of its financial year increase 2% to more than 2.23 billion US dollars for a net income of 225.8 million (+14.8%). A small increase partly due to the development in exchange rates, which cost a percentage point of growth.
But above all, the quarterly report showed complicated international activities for September and October, with very mild weather on the continent. Thus, even though Tommy Hilfiger's global sales increased 1% to 930 million dollars, they went up 3% in North America but went down 1% internationally.
A poor performance notably due to the weak euro but mostly due to the label's 5% decrease on a comparable basis. Store traffic dropped significantly in Europe in the middle of the third quarter, specifically in September, in the midde of Indian Summer, the label pointed out in a press release.
For Calvin Klein, sales went up 2% to 817 million. Internationally, activity went down 1%. In retail, outside of the United States, the decrease was 2% but this time due to the Asian market.
For Heritage Brands (Van Heusen, Izod, Arrow...), sales increased +3% to nearly 492 million and this without taking into account the 66 million that Bass brought in the third quarter of last year and which was conceded to fall 2013.
For the entire financial year, the management is expecting a 3% increase in sales to 8.3 billion dollars. It expects a 5% increase for Tommy Hilfiger and 2% for Calvin Klein.
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