PVH second-quarter sales beat guidance, lifts full-year earnings forecast

PVH Corp. announced on Tuesday revenues for the second quarter increased 4% to $2.207 billion, beating prior guidance of low single-digit growth, with the Calvin Klein owner lifting its full-year guidance on the stronger-than-expected sales.

The New York-based apparel giant said revenue growth was driven by growth in both its Tommy Hilfiger and Calvin Klein businesses, up 6% and 3%, respectively, with a solid performance in the company’s international businesses.

In the Asia Pacific region, PVH witnessed over 20% growth in local currency in China, reflecting continued recovery after the lifting of Covid restrictions in the fourth quarter of 2022. It also saw continued growth in Europe in euros, and in its North America direct-to-consumer business.

The company’s overall wholesale revenue decreased 3% compared to the prior year period.

Net income for the quarter fell to $94.2 million from $115.3 million, while earnings per share dipped to $1.50, compared to $1.72.

“We delivered another strong quarter across both Calvin Klein and Tommy Hilfiger driven by the disciplined execution of our long-term, brand-building growth plan, the PVH+ Plan. We generated double-digit revenue growth in our direct-to-consumer business in both our stores and in e-commerce, through our relentless focus on building brand desirability through product, consumer engagement and marketplace execution.”

“We are increasing our EPS outlook for the year, excluding restructuring charges, based on the confidence we have in our ability to execute in the back half of the year, while continuing to successfully navigate the macroeconomic environment. As we lean into the five key growth drivers of the PVH+ Plan, we’re continuing to gain traction by connecting our consumer-facing execution with an increasingly demand-driven operating engine to fuel long-term profitable growth.”

Looking ahead, full-year 2023 revenue is projected to increase 3% to 4% as compared to 2022, while earnings per share is forecast to be approximately $9.60, compared to $3.03 in the prior-year period.