PVH posts better-than-expected sales as turnaround continues (#1684053)

PVH Corp. on Wednesday said sales fell less-than-expected in the third quarter, down 5% to $2.255 billion, as the owner of Calvin Klein and Tommy Hilfiger recoups sales declines, especially overseas.

The New York-based company said the sales decline ​exceeded prior guidance of a decrease of 6% to 7% for the three months.

By brand, global Tommy Hilfiger revenue fell 1%, weighted down by a 3% decline in North America, partially offset by flat revenues internationally. Meanwhile, Calvin Klein sales dropped 3%, on the back of a 9% contraction in the North America market, offsetting a 1% increase in international sales at the iconic fashion brand.

Elsewhere, Heritage Brands revenue decreased 54% compared to the prior year period, which included a 44% decrease resulting from the sale of the segment’s women’s intimates business.

By channel, the company’s direct-to-consumer revenues were flat for the three months ending November 3, while wholesale revenues fell 8%, including a 4% reduction resulting from the sale of the Heritage Brands women’s intimates business. The remaining decline came on declines in Europe, and the impact of the timing of wholesale shipments in North America

Net income fell to $131.9 million, compared to $161.6 million in the prior-year quarter.

“We beat our top- and bottom-line guidance for the third quarter, fueled by our relentless execution of the PVH+ Plan. 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.

“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. 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 Asia Pacific, we are delivering on our plan and drove 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.”

Last month, the U.S. company announced the appointment of Jesper Andersen, executive vice president and chief financial officer of the Lego Group, to its board of directors, effective immediately.