PVH reports 10% revenue decline in Q1, announces leadership changes

PVH Corp. announced on Tuesday a 10% drop in revenues to $1.952 billion for the first quarter, held back by a sluggish wholesale segment. 

The New York-based company said Tommy Hilfiger revenue decreased 10% compared to the prior year period, due to a 14% drop in international revenues, slightly offset by a 2% gain in North America sales.

Calvin Klein‘s first quarter revenue was flat, due to a 2% drop in international sales, and a 4% gain in North America sales. 

Heritage Brands revenue decreased 65% compared to the prior year period, which included a 47% decrease resulting from the sale of the Heritage Brands women’s intimates business.

By channel, direct-to-consumer revenue increased 1% with growth in both the company’s owned and operated stores in all regions, while the firm’s total digital revenue was down 6%. 

Wholesale revenue decreased 17%, as wholesalers continue to take a cautious approach, particularly in Europe, added PVH.

“We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter,” said Stefan Larsson, chief executive officer.

“We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe.”

Looking ahead, the company reaffirmed a projected decrease in revenue for 2024 of 6% to 7% as compared to 2023, inclusive of a 2% reduction related to the sale of the Heritage Brands women’s intimates business and a 1% reduction from the 53rd week in 2023. For the second quarter of 2024, revenue is equally projected to decrease 6% to 7%.

“Although we are still early in our journey to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, we are already creating some of the highest consumer engagement in the history of our brands,” added Larson.  

“We also continue to gain traction in all five PVH+ Plan growth drivers, with strong growth in key product categories and hero products with significant gross margin expansion. This is fueled by the build-out of our demand-driven supply chain and targeted growth investments, complemented by cost efficiencies from simplifying how we work.”

Coinciding with the earning results, PVH announced that Martijn Hagman, CEO of Tommy Hilfiger Global and PVH Europe, will be leaving the company. 

Lea Rytz Goldman, Tommy Hilfiger global president, will lead the global brand, while David Savman, PVH’s chief supply chain officer, will serve as Interim CEO for PVH Europe. The company has launched a search for a new European leader.