PVH revenues, income gain in 2023 despite plunging Calvin Klein North America wholesale

PVH Corp. announced on Monday a 2% uptick in revenues to $9.218 billion for the year 2023, held back by a sluggish North America wholesale segment at its Calvin Klein brand.

The New York-based company said Tommy Hilfiger annual revenue increased 4%, thanks to a 3% increase in international revenues and 6% gain in North America sales. Calvin Klein annual revenue increased 3%, pushed on by a 10% increase in international sales, partially offset by a 7% drop in North America sales, and the regions lagging wholesale business. 

Heritage Brands revenue decreased 18% compared to 2022, including a 7% decrease resulting from the sale of the Heritage Brands women’s intimates business.

For the year ending February 4, net income surged to $663.6 million, compared to $200.4 million in the prior-year period.

Fourth quarter revenues were flat for the three months ending February 4, with net income increasing to $271.8  million, compared to $138.7 million in the prior-year period.

“We delivered a strong fourth quarter and fiscal 2023, generating high single-digit direct-to-consumer growth, with growth in both Calvin Klein and Tommy Hilfiger and all regions,” said Stefan Larsson, chief executive officer, PVH Corp.

“We significantly expanded our gross margins, drove strong pricing power, and are beginning to realize the benefits from the early buildout of our demand-driven supply chain, which allowed us to decrease inventory 21% to last year with much better stock freshness to start the new spring season.”

Looking ahead, revenue for 2024 is projected to decrease 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.

“We will continue to build momentum with our PVH+ Plan, driving brand desirability for both Calvin and Tommy in product, consumer engagement and marketplace execution, powered by our demand-driven underlying operating engine,” added Larsson.

“This will directly translate into growth in Asia and North America, while in Europe where the macro has become more challenged, our focus is on quality of sales to further strengthen our market-leading position. We see big, value-creating upside through the compounded effect of our consistency in PVH+ Plan execution and strong brand-building focus as we drive long-term, profitable, brand-accretive growth.”