PVH Corp, the parent company of Calvin Klein and Tommy Hilfiger, has reported revenue of $1.95bn in the first quarter (Q1) of fiscal 2024 (FY24), down 10% from $2.15bn in Q1 FY23.
During the quarter, revenue for Tommy Hilfiger decreased by 10% compared to the previous year, while Calvin Klein's revenue remained flat.
The company's international businesses also experienced a 9% revenue drop in Q1 FY24, attributed to a decline in Europe, counterbalanced by growth in the Asia Pacific region.
Its direct-to-consumer revenue saw a modest increase of 1%, with a 3% increase in company-owned and operated stores revenue, but the digital commerce business declined by 6%.
PVH's net income ending 5 May 2024 improved to $151.4m in Q1 FY24, up from $136.0m in the same period of the previous year.
The retailer’s diluted earnings per share (EPS) also increased to $2.59, compared to $2.14 in Q1 FY23.
PVH delivered earnings before interest and taxes of $205.1m on a generally accepted accounting principles basis, compared to $198.8m in Q1 FY23.
Its gross profit also dropped to $1.19bn from $1.25bn in Q1 FY23, while its gross margin increased significantly by 350 basis points to 61.4%.
PVH Corp CEO Stefan Larsson said: “We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter.
“We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe."
For the full year, PVH raised its EPS outlook to $11.15 to $11.40, up from the previous forecast of $10.75 to $11.00.
The company also reaffirmed its revenue outlook, projecting a decrease of 6% to 7%.
