PVH Corp, the parent company of iconic brands like Tommy Hilfiger and Calvin Klein, announced a robust third-quarter performance with a 4% increase in revenues, reaching $2.363 billion. This impressive result has prompted PVH to revise its full-year earnings outlook, showcasing the company’s resilience and growth in a dynamic market.
Key highlights include a 4% rise in Tommy Hilfiger revenue, demonstrating strong international growth (3%) and a significant 6% surge in North American sales. Calvin Klein also experienced a noteworthy 6% increase in revenues, driven by a remarkable 10% growth in international sales, partially offset by a 1% dip in North America.
While Heritage Brands saw an 11% decline in revenue, PVH Corp confirmed the successful completion of the sale of the Heritage business on November 27.
In terms of sales channels, direct-to-consumer revenue saw a substantial 8% increase, reflecting growth in company-owned stores and the digital commerce sector across all regions. The overall digital revenue for PVH witnessed an impressive 13% rise.
Wholesale revenue, however, showed a modest 1% increase, attributed to cautious approaches by wholesale customers in the current market conditions.
PVH Corp marked a significant turnaround, reporting a net income of $161.6 million in Q3, a notable improvement compared to the net loss of $186.7 million in the same period last year.
Stefan Larsson, CEO of PVH, attributed this success to the disciplined execution of the PVH+ Plan, emphasizing gains in product categories, marketing campaigns, and demand-driven supply chain strategies.
In response to the solid year-to-date performance, PVH Corp has raised its full-year earnings per share (EPS) guidance to approximately $9.75, up from the previous estimate of $9.60. The full-year revenue is now projected to increase by approximately 1%, considering the impact of the recently concluded sale of the Heritage Brands intimate apparel business.
PVH Corp’s strong quarter and strategic moves position it favorably in the market, emphasizing the resilience and growth potential of its iconic brands.
Explore more insights into PVH Corp’s performance and outlook, driving its position as a leading player in the competitive retail landscape.
