The company's gross profit in the third quarter was $1.32 billion, up from $1.33 billion in the same period last year. Selling, general and administrative (SG&A) expenses reached $1.15 billion, up from $1.12 billion. The company's gross margin increased 170 basis points to 58.4 percent compared to 56.7 percent in the prior-year period, PVH Corp said in a news release.
PVH Corp reported revenue of $2.25 billion in the third quarter of 2024, down 5 percent year-over-year, with net income of $131.9 million. For the nine months of 2024, revenue reached $6.28 billion, down from $6.73 billion in 2023, while net income rose to $441.3 million. The company expects fiscal 2024 total revenue to fall 6 to 7 percent year-over-year, and fourth-quarter revenue is also expected to decline 6 to 7 percent.
Net income in this period was $131.9 million, compared to $161.6 million in the same period last year. Diluted net income per common share was $2.34 during the period, compared to $2.66 a year ago.
Direct-to-consumer (DTC) revenue was flat compared to the prior-year period (down 1 percent in constant currency). Revenue at company-owned and operated stores increased 1 percent compared to the prior-year period (decreased 1 percent in constant currency).
Revenue in the company's owned and operated digital commerce business decreased 1 percent compared to the same period last year (down 3 percent in constant currency), primarily due to continued strategic downsizing of the company's sales in Europe to drive overall growth. higher quality of sales in the region, the statement says.
The company's wholesale revenue decreased 8 percent compared to the prior-year period (decreased 9 percent in constant currency), including a 4 percent reduction resulting from the sale of Heritage Brands' women's intimate apparel business .
Overall revenue from the company's international businesses was flat compared to the prior-year period (decreased 2 percent in constant currency), as growth in the Asia Pacific region in local currency was more than offset by the continuation of the company's planned strategic reduction. of sales in Europe to drive higher overall sales quality in the region. In North America, combined revenue from the Tommy Hilfiger and Calvin Klein businesses decreased 6 percent compared to the same period a year earlier, it added.
“We exceeded our revenue and results forecasts for the third quarter, driven 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 product momentum, with significantly improved direct sales for Fall 24 across all regions and across both of our iconic brands. , and we are entering the holiday season with a fresh and solid inventory composition,” he said Stefan Larsson, Chief Executive Officer (CEO) of PVH Corp.
“We continue to manage our business prudently by remaining agile and maintaining strong spending discipline. Across the Company, we are focused on driving long-term sustainable and profitable growth by unlocking the full potential of our iconic brands, increasing sales quality and generating cost efficiencies to generate significant cash flow and attractive returns for our shareholders. “, said Zac Coughlin, Chief Financial Officer (CFO) of PVH Corp.
Nine Month Financials (9M)
For the 9-month period, PVH Corp reported total revenue of $6.28 billion, a decrease from $6.73 billion in the same period last year. Net sales contributed $5,946.3 million, compared to $6.38 billion in 2023. Royalty revenue was $266.8 million, down slightly from $272.8 million a year earlier, while advertising revenue and others reached $68.2 million, below the $72.9 million.
The company's gross profit in the 9-month period amounted to $3.76 billion, up from $3.86 billion a year earlier, SG&A expenses totaled $3.25 billion, up from $3.326, 3 million dollars last year. Net income reached $441.3 million, up from $391.8 million a year earlier. Diluted net income per share was $7.74, up from $6.29 year over year.
Perspective
For the full year 2024, PVH expects its revenue to decline 6 to 7 percent compared to 2023 (down 6 to 7 percent in constant currency). GAAP operating margin is projected to be 9.2 percent compared to 10.1 percent in 2023 from previous guidance of approximately 9.8 percent. Earnings per share (EPS) projections include the estimated negative impact of approximately $0.15 per share related to foreign currency translation from prior guidance of approximately $0.05.
The company's revenue in the fourth quarter (Q4) of 2024 is projected to decrease by 6 to 7 percent compared to the fourth quarter of 2023 (a decrease of 4 to 5 percent in constant currency). Fourth quarter EPS projections include the estimated negative impact of approximately $0.09 per share related to foreign currency translation.
Fiber2Fashion News Desk (SG)
