PVH Corp, the parent company of Tommy Hilfiger and Calvin Klein, has reported “better-than-expected” earnings for the fourth quarter (Q4) of fiscal 2024 (FY24), with revenues reaching $2.37 billion, a 5% decline from $2.49 billion in the same quarter last year. The company had projected a revenue drop of 6% to 7% for the quarter.
For the quarter ending February 2, 2025, the Tommy Hilfiger brand saw a 5% year-over-year revenue decrease, with the brand’s international business experiencing a 7% decline.
Calvin Klein also faced a 2% revenue decline compared to the previous year, with international sales down by 4%. This decrease was somewhat offset by a 3% increase in North America, primarily attributed to the timing of wholesale shipments.
Revenue from Heritage Brands fell sharply by 41% compared to the same period last year, which included a 28% decline following the sale of its women’s intimates business.
Stefan Larsson, CEO of PVH Corp, remarked: “Driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well-positioned for 2025.”
Key Metrics from Q4 Fiscal 2024
PVH Corp’s direct-to-consumer revenue in Q4 FY24 decreased by 5% from the previous year. Revenue from owned and operated stores declined by 4%, while digital commerce revenue experienced a 10% drop.
Wholesale revenues also dropped by 5%, including a 2% reduction stemming from the divestiture of the women’s intimates business within Heritage Brands.
The company reported a gross profit of $1.38 billion for the quarter, down from $1.50 billion in the previous fiscal quarter. Gross margin contracted to 58.2%, down from 60.3%, due to increased promotional activities, an unfavorable channel mix, and higher freight costs.
Net income for PVH Corp in Q4 FY24 fell to $157.2 million, compared to $271.8 million in the same quarter last year. Earnings per share (EPS) also decreased to $2.83 from $4.55.
Additionally, the company’s earnings before interest and taxes (EBIT) dropped to $210 million in Q4 FY24, down from $356 million in the corresponding period last year.
Fiscal Year Performance
For FY24, PVH Corp’s revenue declined by 6% to $8.65 billion, compared to $9.21 billion in FY23. Both Tommy Hilfiger and Calvin Klein reported revenue declines of 5% and 1%, respectively, while Heritage Brands experienced a significant decrease of 57%, which included a 45% drop due to the sale of its women’s intimates business.
The company reported a 9% decline in net income to $598.5 million in FY24 from $663.6 million in FY23, with EPS at $10.56 compared to $10.76 in FY23.
EBIT fell to $772 million, negatively affected by foreign currency translation, down from $929 million in FY23.
“In 2024, we beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin. In a challenging macro environment, we delivered another year of strong profitability in North America, drove sequential improvements in our wholesale order books in Europe while improving our quality of sales, and achieved our third consecutive year of growth in Asia Pacific on a constant currency basis,” Larsson added.
Outlook for FY25
Looking ahead to FY25, PVH Corp projects full-year revenue to remain flat or increase slightly compared to FY24. The company expects its operating margin to remain stable or experience slight growth on a non-GAAP basis compared to the non-GAAP figure of 10.0% in FY24.
EPS is anticipated to range between $12.40 and $12.75 on a non-GAAP basis, versus GAAP EPS of $10.56 and non-GAAP EPS of $11.74 for FY24.
Larsson concluded: “Looking ahead, we are positioning the company for long-term, sustainable growth and remain relentlessly focused on fueling our brand-building consumer flywheel to unlock our full potential around the world.”
As reflected in the latest PVH Corp Earnings Report, these strategic initiatives are aimed at strengthening the company’s market position and ensuring future profitability. The comprehensive insights provided in the PVH Corp Earnings Report indicate a focus on sustainable growth amidst challenging market conditions.
