PVH Corp. posts strong revenue and earnings growth

Fourth quarter revenue at PVH Corp. increased 16 percent or 20 percent on a constant currency basis to 2.430 billion dollars compared to the prior year period.

Earnings per share on a GAAP basis were 5.53 dollars for the fourth quarter compared to a loss per share of 81 cents in the prior year period. Earnings per share on a non-GAAP basis were 2.84 dollars compared to a loss per share of 38 cents in the prior year period.

Commenting on the company’s performance, Stefan Larsson, chief executive officer, PVH, said: “We delivered strong fourth quarter revenue and earnings above guidance. As we look ahead, we are confident in the strength and momentum in our business and our ability to drive strong underlying top and bottom line growth by leaning in to what is within our control, despite the significantly increased macroeconomic and geopolitical volatility over the last few months, including the war in Ukraine, the impact of the global pandemic, and the inflationary pressures we see across our regions.”

Highlights of PVH Q4 results

The revenue increase in the fourth quarter compared to the prior year period reflects an 18 percent increase or 23 percent increase on a constant currency basis in the Tommy Hilfiger business, including a 20 or 26 percent increase on a constant currency basis in Tommy Hilfiger international revenue and a 14 percent increase in Tommy Hilfiger North America revenue.

A 27 percent or 30 percent increase on a constant currency basis in the Calvin Klein business, including a 24 percent or 30 percent increase on a constant currency basis in Calvin Klein international revenue and a 32 percent increase in Calvin Klein North America revenue.

The company reported a 33 percent decrease in the Heritage Brands business compared to the prior year period, which included a 51 percent decrease resulting from the Heritage Brands transaction and the exit from the Heritage Brands retail business.

EBIT on a GAAP basis for the quarter increased to 223 million dollars compared to 26 million dollars in the prior year period. On a non-GAAP basis,EBIT increased to 175 million dollars compared to 28 million dollars in the prior year period.

PVH posts full year revenue growth of 28 percent

PVH revenue for 2021 increased 28 percent or 26 percent in constant currency to 9.155 billion dollars compared to 2020.

The revenue increase compared to 2020 reflects a 29 percent or 27 percent increase on a constant currency in the Tommy Hilfiger business, including a 32 percent or 29 percent increase on a constant currency basis in Tommy Hilfiger international revenue and a 22 percent increase in Tommy Hilfiger North America revenue.

PVH saw a 39 percent or 36 percent increase on a constant currency basis in the Calvin Klein business, including a 39 percent or 36 percent increase on a constant currency basis in Calvin Klein international revenue and a 38 percent increase in Calvin Klein North America revenue.

The company reported an 8 percent decrease in the Heritage Brands business compared to 2020, which included a 27 percent decrease resulting from the sale of the company’s Speedo North America business in April 2020, the Heritage Brands transaction, and the exit from the Heritage Brands retail business.

Earnings per share on a GAAP basis were 13.25 dollars for 2021 compared to a loss per share of 15.96 dollars in 2020. Earnings per share on a non-GAAP basis were 10.15 dollars compared to a loss per share of 1.97 dollars in 2020.

Earnings before interest and taxes on a GAAP basis were 1.077 billion dollars compared to a loss before interest and taxes of 1.072 billion dollars in 2020. EBIT on a non-GAAP basis was 983 million dollars compared to a loss before interest and taxes of 37 million dollars in 2020.

PVH expects 2 to 3 percent increase in FY22 revenue

Revenue in 2022 is projected to increase 2 percent to 3 percent or increase 6 percent to 7 percent on a constant currency basis as compared to 2021, which reflects a 2 percent reduction resulting from the Heritage Brands transaction and the exit from the Heritage Brands retail business and a 2 percent reduction resulting from the company’s decision to temporarily close its stores and pause commercial activities in Russia and Belarus, as well as a reduction in wholesale shipments to Ukraine as a result of the war.

The Company currently projects that 2022 operating margin will be approximately 10 percent and earnings per share will be approximately 9 dollars compared to 13.25 dollars on a GAAP basis and 10.15 dollars on a non-GAAP basis in 2021.

Revenue in the first quarter of 2022 is projected to be relatively flat and increase approximately 4 percent on a constant currency basis, reflecting a 5 percent reduction resulting from the Heritage Brands transaction and the exit from the Heritage Brands retail business and a 1 percent reduction resulting from the company’s decision to temporarily close its stores and pause commercial activities in Russia and Belarus, as well as a reduction in wholesale shipments to Ukraine as a result of the war. The company currently projects that first quarter earnings per share will be in a range of 1.55 dollars to 1.60 dollars compared to 1.38 dollars on a GAAP basis and 1.92 dollars on a non-GAAP basis in the prior year period.