PVH Corp., the New York-based company behind global fashion brands Tommy Hilfiger and Calvin Klein, has ended 2022 on a positive note with better-than-expected sales in the fourth quarter. Despite the challenging global economic environment and ongoing impacts from the Covid-19 pandemic, PVH reported revenues of $2.489 billion for the three-month period, a 2% increase compared to the previous year. This exceeded prior guidance, which had predicted a 4% decrease for the final quarter.
Both the Tommy Hilfiger and Calvin Klein brand businesses experienced growth during this period. Europe and North America, especially the direct-to-consumer segment, saw particularly strong revenue growth. However, PVH also faced negative impacts from the pandemic in China.
For the full year of 2022, Tommy Hilfiger revenues decreased by 1%, partially offset by a 3% increase in Calvin Klein revenues. The company’s heritage brands segment struggled, with a significant 26% decrease, including a 25% decline due to the company’s exit from its heritage brands retail business.
Despite these challenges, PVH CEO Stefan Larsson expressed satisfaction with the company’s performance. He attributed the successful fourth quarter to the implementation of PVH’s multi-year, brand-focused, direct-to-consumer, and digitally-led strategy known as the PVH+ Plan. This strategy focuses on driving brand desirability, creating high-quality products, and engaging with consumers through impactful talent partnerships.
Looking ahead to 2023, PVH projects a 3% to 4% increase in revenue compared to 2022, with an estimated EPS of approximately $10.00. Chief Financial Officer Zac Coughlin expressed optimism about the company’s potential for double-digit EPS growth in 2023. PVH is confident in its ability to achieve sustainable and profitable growth, generate strong cash flows, and deliver attractive returns for its shareholders by capitalizing on the strength of its powerful brands and the strategic initiatives outlined in the PVH+ Plan.
Useful links:
– PVH Corp. official website
– Tommy Hilfiger brand website
