PVH sales beat Q1 guidance, affirms full-year outlook

By

Benjamin Fitzgerald

Published
Jun 1, 2023

PVH Corp. announced on Wednesday first-quarter revenue increased 2% to $2.158 billion, prompting the owner of Calvin Klein and Tommy Hilfiger brands to affirm its full-year guidance.

The New York-based company said revenue growth for the three months ending April 30 was driven by its international businesses, particularly in the Asia-Pacific region, including 44% growth in local currency in China following the lifting of Covid restrictions in the fourth quarter of 2022, and continued growth in Europe in euros.

The increase also reflected strong growth in the North America direct-to-consumer business.

Overall, direct-to-consumer revenue increased 8% compared to the prior year period, with strong growth in both the company’s owned and operated stores and owned and operated digital commerce business.

Wholesale revenue decreased 2% compared to the prior year period.

By brand, Tommy Hilfiger revenue increased 5%, compared to the prior year period. Tommy Hilfiger international revenue increased 3%, and surged 11% in North America.

Meanwhile, Calvin Klein revenue was flat compared to the prior year period, with international revenue up 7%, offset by a 12% slump in North America revenues.

Heritage Brands revenue decreased 12% compared to the prior year period.

Net income grew to $136 million, from $133 million in the prior-year period, while earnings per share were $2.14, a 10% increase, compared to $1.94 in the prior-year period.

“We delivered a strong start to the year with first quarter performance ahead of our guidance for both revenue and earnings, driven by our disciplined execution of the PVH+ Plan. We are reaffirming our guidance for the year, reflecting the confidence we have in our ability to continue to deliver on our near-term commitments, while maintaining a strong focus on our long-term vision to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, and position PVH as one of the best performing brand groups in our sector," ​said ​Stefan Larsson, chief executive officer.

“We are gaining good traction for both brands in all regions, driven by our focus on the key growth drivers of our multi-year PVH+ Plan: winning with product, winning with consumer engagement, winning in the digitally-led marketplace, building a demand- and data-driven operating model, and investing in growth while driving cost efficiencies.”

Looking ahead, PVH affirmed its full-year guidance and still expects revenue to increase 3% to 4%, compared to 2022, while EPS are projected to be approximately $10 compared to $3.03.