PVH Corp, the owner of renowned brands Tommy Hilfiger and Calvin Klein, has revised its earnings outlook for the full year following a robust third quarter performance, where revenues experienced a notable 4 per cent surge, reaching $2.363 billion. Based in New York, the company now anticipates an increase in earnings per share (EPS) to around $9.75, up from the previous estimate of approximately $9.60. The full-year revenue projection has been adjusted to a roughly 1 per cent increase, deviating from the earlier forecast of 3 to 4 per cent growth in the last fiscal year.
In Q3, Tommy Hilfiger's revenues saw 4 per cent rise, driven by a 3 per cent increase in international sales and a substantial 6 per cent growth in North America sales. Likewise, Calvin Klein experienced a 6 per cent revenue boost, propelled by a remarkable 10 per cent surge in international sales. However, Heritage Brands faced an 11 per cent decline in revenues compared to the same period in the previous year.
The company observed an 8 per cent uptick in revenues from direct-to-consumer channels, attributed to a surge in revenues from both owned and operated stores and digital commerce businesses across all regions. The total digital revenue of the company saw a significant 13 per cent increase.
While PVH's wholesale revenues in Q3 registered a modest 1 per cent increase, the net income demonstrated remarkable growth, reaching $161.6 million, a noteworthy turnaround from the net loss of $186.7 million in the same period of the prior year. This positive performance underscores PVH Corp's resilience and strategic adaptability in a dynamic market landscape.