PVH Corp. said Jan. 9 that the company will sell its Speedo North America business to Pentland Group plc for $170 million in cash.
Pentland Group owns British swimwear distributor Speedo International Ltd., which licenses the Speedo trademark to a PVH subsidiary for perpetual use in North America and the Caribbean.
Pentland Group also owns the Berghaus, Canterbury, Ellesse and SeaVees brands.
PVH Chairman and CEO Emanuel Chirico noted that the sale of the swimwear brand is in line with the company's plans to optimize and streamline its Heritage Brands business and focus on delivering sustainable profitable growth of its global brands such as Calvin Klein and Tommy Hilfiger.
The transaction is expected to close in the first quarter of PVH's fiscal 2020 and is subject to customary closing conditions, including regulatory approval.
New York-based PVH has also updated its fourth-quarter and full-year 2019 EPS estimates in connection with the sale of the Speedo business.
PVH now projects a loss per share of 20 cents for the fourth quarter on a GAAP basis, compared with the previous guidance range of $1.56 to $1.58. For the full year, PVH now forecasts its GAAP EPS to be approximately $6.32, compared to its previous guidance range of $8.04 to $8.06.
On a non-GAAP basis, the company expects its EPS to be at least $1.79 in the fourth quarter, while EPS for full-year 2019 is estimated to be at least $9.45.