PVH reports declining sales on U.S. supply chain woes; Americas, Calvin Klein chief steps down
PVH Corp. announced on Tuesday lacklustre financial results for the second quarter, reporting an 8% decline in total sales, on the back of supply chain headwinds in North America.
The New York-based company said second-quarter revenue decreased to $2.132 billion compared to $2.22 billion in the prior year period. Direct-to-consumer revenue decreased 5% compared to the prior year period, while wholesale revenue decreased 11%. Total digital revenue decreased 7%, compared to the prior year period.
By brand, Tommy Hilfiger revenue decreased 5%. Likewise, Tommy Hilfiger international revenue decreased 9%, partially offset by a Tommy Hilfiger North America revenue increase of 6%. Calvin Klein revenue decreased 1%, with Calvin Klein international revenues down 2%, and its North America revenue decreasing 1%. Heritage brands revenue decreased 44%, the company added.
“Our Calvin Klein and Tommy Hilfiger businesses continued to exhibit underlying strength in the second quarter, despite the increasingly challenging macroeconomic environment as the quarter progressed," said Stefan Larsson, chief executive officer.
"We continued to execute very well in Europe and Asia, where countries not currently impacted by Covid are performing significantly above pre-pandemic levels, while in North America we continue to be impacted by ongoing supply chain pressures."
As a result of the declining revenues, PVH Corp. reported net income of $115.3 million, compared to $181.8 million. Earnings per share were $1.72, compared to $2.51 in the prior year period.
The U.S. fashion giant also revealed on Tuesday that Trish Donnelly, chief executive officer, PVH Americas and Calvin Klein global, will be leaving the company to pursue other opportunities. She will remain in an advisory role through November 30, 2022 to facilitate the transition.
PVH said it plans to split Donnelly's former role into two positions: a regional leadership role for PVH Americas and a global brand leadership role for Calvin Klein, add it has launched a global search for both positions. In the interim. Larsson, will lead PVH Americas and Calvin Klein global, working closely with the leadership of both organizations and their teams.
Looking ahead, PVH said it expects full-year revenues to decrease 4% to 3% as compared to 2021.
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