PVH Corp Posts Strong Margins, Higher EPS For Q2 FY2024
PVH Corp announced its second-quarter 2024 results, delivering on its earnings guidance despite a 6% revenue decline to US$ 2.074 billion. This decrease includes a 3% impact from the sale of the Heritage Brands women’s intimates business in late 2023.
Stefan Larsson, CEO, highlighted the company’s successful execution of the PVH+ Plan, leading to strong consumer engagement for Calvin Klein and Tommy Hilfiger, driving higher full-priced sales and reducing end-of-season clearances. This strategy significantly boosted gross margins, which rose 250 basis points to 60.1%.
In North America, revenue for Tommy Hilfiger and Calvin Klein increased by 1%. However, international revenue declined, with Tommy Hilfiger down 4% and Calvin Klein down 1%, primarily due to challenges in the Asia Pacific region and strategic sales reductions in Europe.
CFO Zac Coughlin reaffirmed the company’s revenue and operating margin guidance for 2024, noting strong margin expansions and a continued focus on cost efficiencies. Q2 GAAP earnings per share (EPS) surged to US$ 2.80 from US$ 1.50 in the prior year, with non-GAAP EPS rising to US$ 3.01 from US$ 1.98.
Looking ahead, PVH projects full-year 2024 EPS in the range of US$ 11.20 to US$ 11.45 on a GAAP basis and US$ 11.55 to US$ 11.80 on a non-GAAP basis. The company also anticipates a 6% to 7% revenue decline for the year, inclusive of impacts from divestitures and the previous year’s 53rd week.
PVH continues its commitment to returning cash to shareholders, repurchasing 200,000 shares for US$ 25 million in Q2, with plans to repurchase approximately US$ 400 million worth of shares by year-end.
