PVH raises outlook after Q2 sales growth exceeds expectations

Tommy Hilfiger campaign image
Tommy Hilfiger recorded a 4 per cent uplift in sales. (Source: Tommy Hilfiger/Facebook)

PVH Corp has upgraded its full-year outlook after recording better-than-expected sales and earnings in the second quarter.

The company’s revenue rose 4 per cent to $2.167 billion during the quarter ended August 3, exceeding guidance of a low single-digit increase. 

Tommy Hilfiger recorded a 4 per cent uplift in sales, while Calvin Klein revenue rose 5 per cent.

By region, sales soared 11 per cent in the Americas, driven by growth in the wholesale business. EMEA revenue increased 3 per cent, with growth in the direct-to-consumer business more than offset by a decline in wholesale.

Apac revenue decreased 1 per cent amid flat DTC sales and lower wholesale sales. Licensing revenue fell 3 per cent.

On the bottom line, earnings before interest and taxes fell from $174 million last year to $133 million, while net income grew 41 per cent to $224 million.

“In the second quarter, through our disciplined execution of our PVH+ Plan, we continued to lean further into Calvin Klein and Tommy Hilfiger’s iconic brand strength,” said CEO Stefan Larsson.

“For both brands, our stepped-up actions during the quarter to strengthen our brand-building flywheel across product, marketing and marketplace execution gained traction.”

For the full year, the company expects revenue to increase slightly to low single-digits, compared to the prior range of flat to slight increase.

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