PVH Corp., the parent company of renowned fashion brands Calvin Klein and Tommy Hilfiger, has reported a 2% rise in revenue for the first quarter of this year, reaching a total of $2.158 billion. This impressive performance has resulted in the company reaffirming its full-year outlook, showcasing its strong position in the market.
The growth in revenue was primarily fueled by PVH’s international operations, particularly in the Asia-Pacific region. With the lifting of Covid restrictions in China during the last quarter of 2022, the company experienced a remarkable 44% growth in local currency in the country. Furthermore, PVH witnessed continued growth in Europe, specifically in euros, further contributing to its revenue increase.
Additionally, PVH highlighted robust growth in its North America direct-to-consumer business, with an overall revenue surge of 8% compared to the same period last year. This growth was evident in both PVH’s owned and operated stores, as well as its digital commerce business, indicating its ability to adapt to the changing retail landscape.
Nevertheless, PVH did experience a 2% decline in wholesale revenue compared to the previous year.
Breaking down the revenue by brand, Tommy Hilfiger achieved a 5% increase, with international revenue growing by 3% and surging by an impressive 11% in North America. Conversely, Calvin Klein’s revenue remained steady, with a 7% increase in international revenue offset by a 12% decline in North America.
Unfortunately, PVH’s Heritage Brands revenue suffered a significant 12% decline compared to the prior year period.
Despite the challenges faced, PVH’s net income rose to $136 million, up from $133 million in the previous year, while earnings per share increased by 10% to $2.14.
PVH attributes its strong start to the year to its disciplined execution of the PVH+ Plan, which outlines key strategies for growth. The company remains confident in its ability to achieve its near-term goals, while keeping its long-term vision in mind. This vision involves establishing Calvin Klein and Tommy Hilfiger as the most sought-after lifestyle brands globally, and positioning PVH as one of the top-performing brand groups in the industry.
Stefan Larsson, CEO of PVH, stated that both brands are gaining traction in all regions, driven by the growth drivers outlined in the multi-year PVH+ Plan. These drivers include a focus on product excellence and consumer engagement, excelling in the digitally-led marketplace, implementing a demand- and data-driven operating model, and investing in growth while driving cost efficiencies.
Looking ahead, PVH maintains its full-year guidance and anticipates a revenue increase of 3% to 4% compared to 2022. Additionally, earnings per share are projected to be around $10, a significant improvement from the previous year’s $3.03.
PVH’s robust performance in the first quarter and its positive outlook demonstrate the company’s commitment to driving growth and remaining competitive in the dynamic fashion industry.
Useful links:
1. PVH Corp. official website
2. Calvin Klein official website
