London - PVH Corp., has reported better than expected results for its fourth quarter and fiscal year 2017, driven by strong demand for its Tommy Hilfiger and Calvin Klein brands.
Revenue for the fourth quarter of the year increased to 19 percent compared to the same period a year ago, while revenue for the full year increased a record amount - 9 percent to 8.9 billion US dollars. Net income fell 2 percent to 537.8 million US dollars during the full year, while earnings per share on a GAAP basis were 6.84 US dollars.
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"We are very pleased with our fourth quarter and full year 2017 results, which exceeded our expectations," commented Emanuel Chirico, Chairman and Chief Executive Officer at PVH Corp. "These results are ahead of our long-term targets, driven largely by strong momentum in our Tommy Hilfiger and Calvin Klein businesses."
The increase in full-year revenue has been largely attributed to a 10 percent increase in the Calvin Klein business compared to last year, as demand for the brand continues to grow in Europe and China. Revenues for the brand in North America did witness a comparable store sale decrease of 1 percent, as international store sales increased 6 percent.
PVH Corp. also reported an 11 percent increase in its Tommy Hilfiger business compared to the last year, driven by an "outstanding performance" across Europe and Asia. International comparable sales for the brand increased 8 percent, while North America comparable store sales increased 3 percent. Revenues in the company's heritage brand business were flat compared to the prior year.
Revenue significantly grew during its fourth quarter, increasing 19 percent to 2.50 billion US dollars from 2.11 billion US dollars last year. For the Calvin Klein brand, revenue in the fourth quarter increased 23 percent to 977 million US dollars, as international revenue hit 512 million US dollars. Revenue for the Tommy Hilfiger business increased 22 percent to 1.1 billion US dollars during the fourth quarter.
"Our 2017 results demonstrate our strong execution and commitment to our long-term vision," added Chirico. "We believe that the incredible brand power behind Calvin Klein and Tommy Hilfiger positions us well in the marketplace against our competition and will drive continued momentum, as reflected in our 2018 outlook. While we, like many other global consumer companies, will continue to face geopolitical headwinds, the power of our brands, our businesses and, most importantly, our people should drive our company forward."
Photo: PVH website