PVH reports losses due to Calvin Klein buyout costs
PVH Corp. the owner of Tommy Hilfiger, Calvin Klein and Speedo delved into a fiscal second-quarter loss as the clothing company’s acquisition costs offset a rise in sales. PVH has reported strong sales at its Tommy Hilfiger and Calvin Klein brands in recent quarters. The company earlier this year completed its $2.9 billion purchase of Warnaco Group Inc., which licenses the Speedo brand and Calvin Klein underwear and jeans.
In the latest period, Tommy Hilfiger revenue rose 11% to $799 million as same-store sales were up 10% in North America and 11% in the international business. Calvin Klein revenue more than doubled to $671 million, mainly due to the Warnaco acquisition.
Overall for the quarter ended Aug. 4, PVH reported a loss of $16 million, compared with a year-earlier profit of $89.9 million. The latest quarter included heavy expenses related to the Warnaco acquisition. Revenue rose 47% to $1.96 billion due to a $507 million contribution from the Warnaco businesses.