PVH’s revenue declines amid challenging consumer environment

(Source: Tommy Hilfiger/Facebook)

Apparel giant company PVH booked lower revenue due to weaker international segment sales during the fiscal second quarter.

The company’s revenue declined 6 per cent to $2.07 billion amid what it described as a challenging consumer environment in China and Australia and a planned strategic reduction in sales in Europe.

PVH’s direct-to-consumer and wholesale revenue dropped 5 per cent and 9 per cent, respectively.

However, the group’s net income improved 67.7 per cent to $158 million.

By brands, Tommy Hilfiger’s revenue fell 4 per cent while Calvin Klein’s revenue slid 1 per cent.

Heritage Brands’ revenue plunged 60 per cent, due to the sale of its women’s intimate business.

“North America continues to be a strong proof point, in Europe we are on plan with our targeted quality of sales initiatives, and in Asia Pacific, we continue to drive strong brand engagement to win the big consumer moments,” said Stefan Larsson, PVH CEO.

“Looking ahead, as we navigate an increasingly challenging global macroeconomic backdrop, we remain relentlessly focused on delivering brand-accretive, long-term growth.”

PVH forecasts revenue growth of 6 per cent to 7 per cent for the fiscal third quarter and the full year.

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