Chirico attributed PVH's strong quarterly results to both the Warnaco acquisition as well as improvements in gross margins and tax rates. He said many of PVH's brands, including Heritage, IZOD and Tommy Hilfiger, are performing well, as is Calvin Klein. Chirico even called out the new store designs at JC Penney (JCP) as an area of strength.
Chirico noted that PVH was affected by Hurricane Sandy in the Northeast, that area of the country representing about 35% to 40% of sales this time of year. But even with store closures, Chirico said PVH was able to compensate in other areas.
When asked about the Warnaco acquisition, Chirico once again reiterated the deal will be accretive to PVH's earnings in year one but will really start to deliver for the company in years two and three. He said now is a great time to invest and acquisitions like Warnaco allow PVH to grow its brands into global powerhouses.
When asked about international growth, Chirico was bullish in his outlook for Asia and Latin America as well as in South America. He said that when you have great brands, they drive consumers into your stores no matter what the economy is doing, and that is certainly the case for many of PVH's world-renowned brands.Cramer remains bullish on PVH.