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PVH profits rise as sales more than double

Calvin Klein owner Phillips-Van Heusen saw first quarter sales and profits double, helped by strong growth in the Calvin Klein brand and the company’s acquisition of designer lifestyle label Tommy Hilfiger.

Phillips-Van Heusen (PVH) sales for the three months to May 1 more than doubled to $1.37bn (£831m) from $619m (£375m) compared to the same period the year before. Earnings before interest and taxes in the first quarter increased to $167.1m (£101.3m) from $81.5m (£49.4m) in the first quarter of 2010.

Calvin Klein sales increased 17% to $245.6 (£148.9m). Profit before interest and tax rose 9% to $55.1m (£33.4m) during the period. Its wholesale and retail businesses posted a 23% increase in revenue compared to the prior year’s first quarter, including retail comparable store sales growth of 14%.

The Tommy Hilfiger business, which PVH bought from UK private equity group Apax in May 2010, achieved sales of $715.4m (£433.9m), due to “significantly better than planned growth” in Europe and North America. There was double digit like for like growth for retail sales in both regions. Profits before interest and tax was $66.7m (£40.5).

Emanuel Chirico, chairman and chief executive officer, said: “We believe that the momentum of the Calvin Klein and Tommy Hilfiger brands around the world will continue to drive our revenue and profitability growth. We remain focused on executing our approach to dealing with the product cost increases impacting our industry during the remainder of the year, through product sourcing and design changes, strategic product pricing and prudent inventory and logistics planning.

“The sound execution of our strategies, investment in our world class brands and consistent focus on a strong balance sheet should continue to drive our future growth.”

Chirico said marketing campaigns for both the CK One label and the ‘Meet the Hilfigers’ campaigns have been well received.

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