American firm PVH Corp’s revenue at $2.074 bn in Q2 FY24

PVH Corp, the parent company of iconic brands like Tommy Hilfiger and Calvin Klein, has reported a total revenue of $2.074 billion for the second quarter of fiscal 2024 (Q2 FY24), representing a 6 per cent decrease compared to $2.207 billion in the same period last year. On a constant currency basis, revenue decreased by 5 per cent.

PVH Corp’s Q2 FY24 revenue declined 6 per cent YoY to $2.074 billion, with Tommy Hilfiger and Calvin Klein seeing modest declines.
Despite revenue drops, PVH posted strong earnings growth, with GAAP EPS rising to $2.80 from $1.50.
Gross margin improved to 60.1 per cent, and inventory levels decreased by 12 per cent compared to the prior year.

Tommy Hilfiger, one of the company’s flagship brands, saw its overall revenue decrease by 4 per cent compared to the prior year period, or 3 per cent on a constant currency basis. The decline was more pronounced in Tommy Hilfiger International, where revenue fell by 6 per cent, or 5 per cent on a constant currency basis, largely due to challenges in the European market. However, Tommy Hilfiger North America reported a modest revenue increase of 1 per cent, PVH Corp said in a press release.

Calvin Klein also experienced a revenue decrease of 1 per cent compared to the prior year period, with a flat performance on a constant currency basis. Calvin Klein International revenue decreased by 2 per cent but remained flat on a constant currency basis. In contrast, Calvin Klein North America saw a slight revenue increase of 1 per cent.

The most significant decline was in Heritage Brands, where revenue plummeted by 60 per cent compared to the prior year period. This sharp drop was primarily due to the sale of the Heritage Brands women’s intimates business, which accounted for a 56 per cent decrease.

PVH Corp’s direct-to-consumer revenue decreased by 5 per cent compared to the prior year period, while wholesale revenue saw a larger decline of 9 per cent, or 8 per cent on a constant currency basis.

Despite the revenue challenges, PVH Corp reported strong earnings growth. Earnings before interest and taxes (EBIT) on a GAAP basis were $174 million, inclusive of a $4 million negative impact from foreign currency translation, up from $143 million in the prior year period. On a non-GAAP basis, EBIT was $189 million, also inclusive of the $4 million currency impact, compared to $182 million in the previous year.

Earnings per share (EPS) also showed significant improvement. On a GAAP basis, EPS increased to $2.80 from $1.50 in the prior year period. On a non-GAAP basis, EPS rose to $3.01 from $1.98 in the prior year period.

PVH Corp’s gross margin improved by 250 basis points, reaching 60.1 per cent compared to 57.6 per cent in the same quarter last year. Additionally, inventory levels decreased by 12 per cent compared to the prior year period.

“We delivered on our top- and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fuelled significant gross margin expansion,” said Stefan Larsson, chief executive officer.

Fibre2Fashion News Desk (DP)