PVH Corp. Announces Fiscal First Quarter Results

PVH Corp., the parent company behind the renowned fashion brands Calvin Klein and Tommy Hilfiger, reported a modest 2% increase in sales to $1.984 billion in the recent fiscal quarter. This growth is largely attributed to the successful performance of its Tommy Hilfiger brand.

Brand Performance Breakdown

Tommy Hilfiger Leads with Strong Sales

The Tommy Hilfiger brand experienced a significant 3% increase in sales, primarily driven by robust market activities in EMEA (Europe, Middle East, and Africa) and the Americas. Notably, revenue in the Americas rose by 7%, bolstered by the brand’s wholesale operations, though this was slightly tempered by a small decline in direct-to-consumer sales.

Stable Results for Calvin Klein

In contrast, Calvin Klein’s sales remained steady, revealing no significant changes from the previous year. However, the brand made headlines with the successful launch of its Icon Cotton Stretch line, gaining additional attention through a widely popular campaign featuring international music star Bad Bunny.

Various Regional Dynamics

While the brands thrived in some regions, the picture was not as positive in Asia Pacific (APAC), where sales declined by 13%. This downturn was linked to adverse timing of the Lunar New Year and a challenging consumer environment in China.

Licensing and Financial Highlights

Licensing revenue witnessed a small dip of 2%, following the internalization of certain women’s product categories previously under license. Financially, the quarter was challenging, with the company reporting a loss of $44.8 million, a stark contrast to the $151.4 million profit recorded in the corresponding period last year. Earnings per share also reflected this downturn, with a loss of $0.88 compared to last year’s profit of $2.59 per share.

Strategic Initiatives and Future Outlook

Despite current challenges, PVH Corp.’s CEO, Stefan Larsson, expressed commitment to the ongoing brand enhancement initiatives under the PVH+ Plan. The company aims to amplify its product offerings and engage in impactful marketing campaigns to reinforce its market position. Looking towards the future, the expectations for annual sales are projected to remain stable or show slight increases. Nevertheless, the adjusted earnings forecast has been revised downwards to between $10.75 and $11, down from previously stated figures, due primarily to the negative impacts of U.S. tariffs on imported goods.