PVH Corp. (PVH) Sees FY15 EPS at or Above High-End of Guidance

PVH Corp. [NYSE:PVH] announced today that it currently expects its earnings per share on a non-GAAP basis for the full year 2015 to be at or above $7.00, the high end of its guidance range previously announced on December 2, 2015.

*** The Street is at FY15 EPS of $6.97.

Emanuel Chirico, Chairman and Chief Executive Officer, commented, “Our improved outlook for our earnings per share projection reflects the power of our designer lifestyle brands, Calvin Klein and Tommy Hilfiger, which enabled us to successfully navigate through the difficult macroeconomic environment, particularly the continued headwinds across our businesses resulting from the strengthening U.S. dollar.

Mr. Chirico continued, “Specifically, during the fourth quarter, we experienced continued strength in our global Calvin Klein business and Tommy Hilfiger International business. We were able to post stronger results despite a difficult U.S. retail environment, which was negatively impacted by unseasonably warm weather and decreased international tourist traffic and spending, particularly for our Tommy Hilfiger brand.”

Non-GAAP Amounts and Exclusions:

Reconciliations of GAAP to non-GAAP amounts are presented in the tables later in this release and identify and quantify all excluded items.

The discussions in this release that refer to non-GAAP amounts exclude the following:

• Pre-tax costs of approximately $70 million expected to be incurred in 2015 in connection with the integration of Warnaco and the related restructuring.
• Pre-tax costs of approximately $20 million expected to be incurred in 2015 principally related to the discontinuation of several licensed product lines in the Heritage Brands dress furnishings business.
• Pre-tax costs of approximately $10 million expected to be incurred in 2015 related to the operation of and exit from the Izod retail business.
• A pre-tax gain of $2 million recorded in 2015 on the Company’s equity investment in Kingdom Holding 1 B.V., the parent company of the Karl Lagerfeld brand.
• Discrete tax benefits of $22 million recorded in 2015 primarily related to the resolution of uncertain tax positions.
• Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item is taxable or tax deductible, and if so, in what jurisdiction the tax expense or tax deduction would occur. All items above were identified as either primarily taxable or tax deductible, with the tax effect taken at the statutory income tax rate of the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect.

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