PVH Corp. beats Q4 forecasts despite net loss

PVH Corp., parent to Tommy Hilfiger and Calvin Klein, showed resilience in its fourth quarter, beating analysts' forecasts despite a reported net loss. The company's revenue performance and forward-looking statements sparked confidence, boosting its stock price.

Fourth quarter 2024 revenues fell 3 percent to 2.49 billion dollars, compared to the prior year. However, this surpassed analysts' projections of a potential 7 percent decline.

A net loss of 176.3 million dollars was reported, contrasting with a net income of 147.1 million dollars in the prior year period.

CEO Stefan Larsson stated, "We exceeded both our revenue and earnings guidance in the fourth quarter, driven by the strength of our brands and execution of our strategic priorities."

PVH reports growth in North America

By brand, Tommy Hilfiger saw a 5 percent revenue decline, with international sales dropping 7 percent while North America remained steady. Calvin Klein's revenue fell 2 percent, as international sales declined 4 percent and North America grew 3 percent.

The company credited North America's strong performance to adjusted wholesale delivery schedules, which shifted new inventory arrivals to the fourth quarter instead of the third.

By channel, wholesale revenue decreased 5 percent, and direct-to-consumer sales also declined 5 percent, driven by a 10 percent drop in digital sales.

“In North America, we will continue to drive a double-digit EBIT margin, in Europe our fall 2025 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region,” Larsson said.

PVH projects stable outlook and announces share repurchase program

PVH Corp. anticipates revenue to remain relatively stable for 2025, projecting flat growth or a slight increase compared to 2024.

This positive outlook, in a market where many brands are revising forecasts downward, was well-received by investors, as seen in the company's stock performance.

PVH also announced its intent to enter accelerated share repurchase agreements to repurchase 500 million dollars of its common stock under the existing 5 billion dollar stock repurchase authorisation, of which 1.8 billion dollars was available for share repurchases as of February 2, 2025, the end of its most recent fiscal year.