PVH Corp reports flat revenue, forecasts declining fortunes this year

(Source: Calvin Klein)

PVH Corp has posted flat revenue for the fourth quarter amid moderate increases from both the Tommy Hilfiger and Calvin Klein brands.

The company’s revenue was $2.49 billion, which was flat compared to the prior year period and down 1 per cent on a constant currency basis. Its international businesses reported a 4 per cent increase as strong growth in Asia Pacific more than offset a continued challenging macroeconomic environment in Europe.

For the Tommy Hilfiger brand, total revenue edged up 1 per cent, including a 1 per cent drop in international sales and a 4 per cent improvement in North America.

Calvin Klein’s revenue rose 4 per cent, with international revenue up 12 per cent while North American sales were down 8 per cent.

Heritage Brands revenue fell 41 per cent, which included a 30 per cent decrease resulting from the sale of the Heritage Brands women’s intimates business.

On the bottom line, EBIT rose to $357 million from $297 million in the prior year, including a $5 million positive impact due to foreign currency translation.

For the full year, revenue increased 2 per cent to $9.218 billion, while EBIT on a GAAP basis was $929 million compared to $471 million in FY22. 

The company is expecting revenue to drop 6 or 7 per cent in FY24, inclusive of a 2 per cent reduction related to the sale of the Heritage Brands women’s intimates business and a 1 per cent reduction from the 53rd week in 2023.

“Looking ahead to 2024, we will continue to build momentum with our PVH+ Plan, driving brand desirability for both Calvin and Tommy in product, consumer engagement and marketplace execution, powered by our demand-driven underlying operating engine,” said Stefan Larsson, CEO of PVH.

“This will directly translate into growth in Asia and North America, while in Europe where the macro has become more challenged, our focus is on quality of sales to further strengthen our market-leading position.”

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