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PVH reports strong earnings growth in Q1

By Prachi Singh

2 Jun 2022

Business

Image: Alasdair McLellan, Calvin Klein collaborates with Palace

For the first quarter, PVH Corp. revenue increased 2 percent or 7 percent on a constant currency basis to 2.123 billion dollars.

The company’s earnings before interest and taxes were 210 million dollars compared to 197 million dollars on a GAAP basis and 249 million dollars on a non-GAAP basis in the prior year period.

Earnings per share were 1.94 dollars compared to 1.38 dollars on a GAAP basis and 1.92 dollars on a non-GAAP basis in the prior year period.

Commenting on the results, Stefan Larsson, the company’s chief executive officer, said: “We are pleased with our first quarter performance in which we delivered strong underlying top-line growth and beat our guidance. Looking ahead, we are encouraged by the sustained momentum of our overall underlying trends, and remain confident in our full year outlook.”

PVH reports Q1 revenue increase across brand portfolio

The company said, Tommy Hilfiger revenue increased 2 percent or 7 percent on a constant currency basis, including a 2 percent decrease or 5 percent increase on a constant currency basis in Tommy Hilfiger international revenue and a 15 percent increase in Tommy Hilfiger North America revenue.

Calvin Klein revenue increased 13 percent or 17 percent on a constant currency basis , including a 7 percent or 13 percent increase on a constant currency basis in Calvin Klein international revenue and a 26 percent increase in Calvin Klein North America revenue.

Heritage Brands revenue decreased 31 percent compared to the prior year period, and includes a 42 percent decrease resulting from the Heritage Brands transaction and the exit from the Heritage Brands retail business.

PVH projects negative impact of Ukraine war on outlook

For the full year 2022, the company added that revenue is projected to increase 1 percent to 2 percent or increase 6 percent to 7 percent on a constant currency basis 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 war in Ukraine.

Operating margin is projected to be approximately 10 percent and earnings per share on a GAAP basis to be approximately 9.20 dollars compared to 13.25 dollars in 2021. Earnings per share on a non-GAAP basis is projected to be approximately 9 dollars compared to 10.15 dollars in 2021.

For the second quarter, PVH said, revenue is projected to decrease approximately 4 percent to 3 percent or increase approximately 2 percent to 3 percent on a constant currency basis, reflecting a 4 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 war in Ukraine.

Earnings per share on a GAAP basis is projected to be approximately 2.20 dollars compared to 2.51 dollars in the prior year period and earnings per share on a non-GAAP basis is projected to be approximately 2 dollars compared to 2.72 dollars in the prior year period.

CALVIN KLEIN
PVH Corp
TOMMY HILFIGER