PVH Corp. reports better than predicted revenue for Q3 as turnaround plan continues

New York-based fashion giant PVH Corp. reported that revenue declined less than expected during its third quarter for 2024, dropping 5 percent to 2.255 billion dollars compared to the same period the year prior. The company, which owns iconic fashion brands such as Calvin Klein and Tommy Hilfiger, added that it outperformed its earlier projection of a 6 percent to 7 percent drop, bolstered by recovering international sales.

Looking at individual brand performance, global revenue for Tommy Hilfiger dropped 1 percent, driven by a 3 percent decline in North America, though this was balanced by stable performance internationally. Calvin Klein saw a 3 percent revenue decrease, with a steep 9% percent decline in North America offsetting a modest 1 percent growth in international markets.

PVH Corp. beats top- and bottom-line guidance for Q3

PVH Corp. reported Wednesday morning that the Heritage Brands segment experienced a steep 54 percent revenue drop compared to the same period last year. This was primarily due to a 44 percent revenue reduction from the divestiture of its women’s intimates business.

Examining at individual sales channels, direct-to-consumer revenue held steady for the quarter ending November 3, while wholesale revenue fell 8 percent. This decline included a 4 percent impact from the Heritage Brands divestiture, reduced performance in Europe, and timing shifts in North American shipments.

Net income for the quarter dropped to 131.9 million dollars, down from 161.6 million dollars in the previous year. “We beat our top- and bottom-line guidance for the third quarter, fueled by our relentless execution of the PVH+ Plan,” said Stefan Larsson, chief executive officer of PVH Corp., in a statement on the report.

“Throughout the quarter, we drove powerful consumer engagement for both Calvin Klein and Tommy Hilfiger and continued to build momentum in product, with significantly improved sell-throughs for the Fall 24 season across all regions and both our iconic brands, and we are coming into the holiday season with a fresh and strong inventory composition," said Stefan Larsson, chief executive officer, PVH Corp., in a statement.

“We are building systematic and repeatable progress across the business, where we increasingly connect product strength, consumer engagement, and marketplace execution to our data and demand-driven operating model," continued Larsson.

"In North America, we continue to deliver strong profitability; in Europe, we are gaining great traction with our quality of sales initiative, which led to increased sell-throughs and sequentially improved wholesale orders; and in the Asia Pacific, we are delivering on our plan, and driving growth across all channels. Looking ahead, we are focused on driving next-level execution of the PVH+ Plan to build our brands for sustainable, profitable growth.”

The reports came not long after the US company announced the appointment of Jesper Andersen, executive vice president and chief financial officer of the Lego Group, to its board of directors.