Tommy Hilfiger, Calvin Klein parent PVH projects weak outlook

PVH projects fiscal 2024 revenue to decrease 6 percent to 7 percent on current and constant exchange basis compared to 2023 , inclusive of a 2 percent reduction related to the sale of the Heritage Brands women’s intimates business and a 1 percent reduction from the 53rd week in 2023.

First quarter revenue is also expected to decrease approximately 11 percent or 10 percent on a constant currency basis.

Commenting on the outlook, Stefan Larsson, PVH chief executive officer, said in a statement: “Looking ahead to 2024, 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. 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."

Highlights of PVH Q4 results across brand portfolio

In the fourth quarter, PVH recorded revenue of 2.490 billion dollars, flat compared to the prior year period and decrease of 1 percent on a constant currency basis. EBIT for the quarter on a GAAP basis was 357 million dollars, while non-GAAP EBIT was 301 million dollars. Earnings per share on GAAP basis increased to 4.55 dollars and on non-GAAP basis rose to 3.72 dollars.

Tommy Hilfiger revenue increased 1 percent and decreased 1 percent on a constant currency basis with international revenue down 1 percent or 3 percent on a constant currency basis and North America revenue increase of 4 percent.

Calvin Klein business increased 4 percent or 3 percent on a constant currency basis with international revenue up 12 percent or 10 percent on a constant currency basis and North America revenue down 8 percent driven by a decrease in the wholesale business.

Heritage Brands revenue decreased 41 percent compared to the prior year period, which included a 30 percent decrease resulting from the sale of the Heritage Brands women's intimates business.

PVH FY23 revenue increases by 2 percent

The company’s revenue in fiscal year 2023 increased 2 percent or 1 percent in constant currency to 9.218 billion dollars.

Tommy Hilfiger revenue increased 4 percent or 2 percent on a constant currency basis compared to 2022 with international revenue increase of 3 percent or 1 percent on a constant currency and North America revenue up 6 percent.

Calvin Klein revenue increased 3 percent on current and constant currency with international revenue increasing 10 percent or 9 percent on a constant currency basis and North America revenue decreasing 7 percent driven by a decrease in the wholesale business.

Heritage Brands revenue decreased 18 percent, including a 7 percent decrease resulting from the sale of the Heritage Brands women's intimates business.

EBIT on a GAAP basis was 929 million dollars and on a non-GAAP basis was 931 million dollars. GAAP EPS increased to 10.76 dollars, and non-GAAP EPs to 10.68 dollars compared to 2022.

FY24 Operating margin is projected to be approximately flat compared to 10.1 percent in 2023, EPS is projected to be in a range of 10.75 dollars to 11 dollars on a GAAP basis. EPS for the first quarter is projected to be approximately 2.15 dollars compared to 2.14 dollars in the first quarter of 2023.