PVH Corp, the parent company of iconic brands such as Tommy Hilfiger and Calvin Klein, has reported total revenue of $2,074 billion for the second quarter of fiscal year 2024 (Q2 FY24), down 6% compared to $2,207 billion in the same period last year. On a constant currency basis, revenue decreased 5%.
PVH Corp.’s fiscal 2024 second-quarter revenue decreased 6 percent year-over-year to $2.074 billion, with Tommy Hilfiger and Calvin Klein experiencing modest declines. Despite revenue declines, PVH posted strong earnings growth, with GAAP EPS increasing to $2.80 from $1.50. Gross margin improved to 60.1 percent and inventory levels decreased 12 percent compared to the prior year.
Tommy Hilfiger, one of the company’s flagship brands, saw its overall revenue decline 4 percent compared with the same period a year ago, or 3 percent on a constant currency basis. The decline was more pronounced at Tommy Hilfiger International, where revenue fell 6 percent, or 5 percent on a constant currency basis, largely due to challenges in the European market. However, Tommy Hilfiger North America reported a modest 1 percent revenue increase, PVH Corp said in a news release.
Calvin Klein also experienced a 1 percent revenue decline compared to the same period last year, with a flat performance in constant currency. Calvin Klein International revenue decreased 2 percent, but remained flat in constant currency. In contrast, Calvin Klein North America experienced a slight revenue increase of 1 percent.
The most significant decline was at Heritage Brands, where revenue plummeted 60 percent compared to the same period last year. This sharp decline was primarily due to the sale of Heritage Brands' women's underwear business, which accounted for a 56 percent decline.
PVH Corp's direct-to-consumer revenue decreased 5 percent compared to the same period last year, while wholesale revenue experienced a larger decline of 9 percent, or 8 percent on a constant currency basis.
Despite revenue challenges, PVH Corp reported solid earnings growth. Earnings before interest and taxes (EBIT) on a GAAP basis was $174 million, including a negative $4 million impact from foreign currency translation, compared to $143 million in the prior-year period. On a non-GAAP basis, EBIT was $189 million, also including a $4 million currency impact, compared to $182 million in the prior-year period.
Earnings per share (EPS) also showed significant improvement. On a GAAP basis, EPS increased to $2.80 from $1.50 in the prior-year period. On a non-GAAP basis, EPS increased to $3.01 from $1.98 in the prior-year period.
PVH Corp's gross margin improved by 250 basis points to 60.1 percent, compared with 57.6 percent in the same quarter last year. In addition, inventory levels decreased 12 percent compared with the same period last year.
“We delivered on our revenue and earnings commitments and exceeded our earnings guidance for the second quarter, thanks to our disciplined execution of the PVH+ Plan. For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and enhance the novelty of our assortment, leading to more full-price sales and fewer end-of-season clearance sales, driving significant gross margin expansion,” he said. Stefan Larsson, CEO.
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