PVH Corp., the New York-based fashion company, had an outstanding year in 2021, finishing on a high note with strong fourth-quarter revenue and earnings. The company’s annual revenues grew by an impressive 28% compared to the previous year, surpassing their pre-pandemic levels in 2019. PVH Corp., known for its popular brands Calvin Klein and Tommy Hilfiger, reported a total revenue of $9.155 billion for the full year.
In the fourth quarter, PVH Corp. saw a 16% increase in revenue (20% on a constant currency basis) compared to the same period in the previous year. This growth is particularly remarkable considering the ongoing challenges posed by supply chain and logistics disruptions, as well as the global impact of the Covid-19 pandemic. Despite these obstacles, the company’s international businesses, especially in Europe, performed exceptionally well during this period. Additionally, online sales increased by 10%, while direct-to-consumer sales grew by 13%. Wholesale revenues also saw a boost of 20% due to the favorable impact of a shift in the timing of US wholesale shipments.
Under the Tommy Hilfiger brand, revenues increased by 18%, with international sales rising by 20% and North America market sales increasing by 14%. Calvin Klein experienced a surge in quarterly sales, with a 27% gain overall. North America saw a 32% increase in sales for the brand, while international sales rose by 24%. These positive results contributed to a total net income of $390.8 million for the quarter.
Stefan Larsson, the CEO of PVH Corp., expressed his satisfaction with the company’s performance and emphasized their focus on recovery and growth during the pandemic. He highlighted the achievement of operating margins that surpassed pre-pandemic levels from 2019, driven by significant gross margin expansion. PVH Corp. aims to continue capitalizing on consumer trends in the “new normal” and deliver sustainable long-term growth.
Looking ahead to 2022, PVH Corp. projects a revenue growth of 2% to 3%. Despite increased macroeconomic and geopolitical volatility, Larsson remains confident in the strength and momentum of the business. The company plans to drive growth by prioritizing brand and product relevance, enhancing digital capabilities, improving consumer engagement, and driving operational efficiencies.
In conclusion, PVH Corp. had an exceptional year in 2021, with strong revenue growth that surpassed pre-pandemic levels. Their iconic brands, Calvin Klein and Tommy Hilfiger, performed exceptionally well both internationally and in their respective markets. PVH Corp. is well-prepared to navigate the challenges of 2022 by focusing on key growth areas and investing in the success of their brands.
Useful Links:
1. PVH Corp. Official Website
2. Calvin Klein Official Website
