PVH revenues up 4 percent, powered by Calvin Klein and Tommy Hilfiger
PVH Corp reported a 4 percent increase in sales to $2 billion for the most recent financial quarter, compared to the same quarter last year. The increase was largely buoyed by the performances of the Calvin Klein and Tommy Hilfiger brands, with a decrease in the revenues of PVH’s heritage brands.
However, net income took a dramatic dive, finishing up with $70.1 million for the quarter, down from $231.6 million for the same period last year. The brand portfolio group attributed this drop to various major expenses, including $7 million for relocating the Tommy Hilfiger offices in New York and a $54 million dollar deal with Li & Fung to reorganize PVH's supply chain in China.
Tommy Hilfiger’s revenues increased 6 percent to $842 million, while Calvin Klein saw a 5 percent increase to $756 million. Both saw even higher increases in the international market, with Tommy Hilfiger’s international revenues jumping 15 percent. Despite Calvin Klein’s recent deconsolidation in Mexico, the brand still managed an 11 percent increase in international revenues thanks to its growth in China and Europe.
“We continue to experience strong momentum in our Calvin Klein and Tommy Hilfiger businesses, which allowed us to exceed both our sales and earnings guidance for the first quarter despite the volatile macroeconomic environment and the highly promotional retail market in the U.S.,” said PVH’s Chairman and CEO Emanuel Chirico.
The New York City corporation’s heritage brands, which includes labels such as Warner’s and Speedo, decreased 3 percent to $391 million. PVH attributed the lowered earnings due to a change in shipment schedule and the discontinuation of certain licensing brands.
Both Tommy Hilfiger and Calvin Klein have secured high-profile talent for recent campaigns and partnerships. Tommy Hilfiger recently announced it would continue its successful partnership with Gigi Hadid. Calvin Klein, now under the direction of former Dior creative director Raf Simons, signed Paris Jackson as the brand’s new face and released campaigns this year with the likes of Lauren Hutton and the cast of the Oscar-winning Moonlight.
PVH expects revenue for its heritage brands to remain flat for the rest of year. It projects however that Calvin Klein’s revenues will increase 6 percent, while Tommy Hilfiger’s will rise 2 percent, allowing PVH to raise its overall guidance for consolidated revenue to 3 percent from its initial projection of 2 percent.
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