The company’s gross profit in Q3 was $1.32 billion, up from $1.33 billion in the same period last year. Selling, general and administrative (SG&A) expenses increased to $1.15 billion from $1.12 billion. The company’s gross margin rose 170 basis points to 58.4 percent compared to 56.7 percent in the year-ago period, PVH Corp said in a press release.
PVH Corporation reported Q3 2024 revenue of $2.25 billion, down 5 percent year over year, with net income of $131.9 million. For 9M 2024, revenue reached $6.28 billion, down from $6.73 billion in 2023, while net income rose to $441.3 million. The company expects full fiscal 2024 revenue to decline by 6-7 percent YoY, with Q4 revenue also projected to decline by 6-7 percent.
Net income for the period was $131.9 million, compared to $161.6 million in the same period last year. Diluted net income per common share for the period was $2.34 compared to $2.66 last year.
Direct-to-consumer (DTC) revenue was flat compared to the prior-year period (down 1 percent on a constant currency basis). Revenue at company-owned and operated stores increased 1 percent compared to the prior-year period (down 1 percent on a constant currency basis).
Revenue in the company’s owned and operated digital commerce business decreased 1 percent compared to the prior-year period (down 3 percent on a constant currency basis), primarily due to the continuation of the company’s planned strategic sales decline in Europe to drive overall higher quality sales in the region, the release said.
The company’s wholesale revenue fell 8 percent compared to the prior-year period (down 9 percent on a constant currency basis), including a 4 percent decline in sales of the Heritage brand’s women’s intimates business.
Overall revenue from the company’s international business was flat compared to the prior-year period (down 2 percent on a constant currency basis), as growth in the Asia Pacific region in local currencies more than offset the company’s planned strategic downsizing. Sales in Europe drive overall high quality sales in the region. In North America, revenue at the Tommy Hilfiger and Calvin Klein businesses fell 6 percent from the year-ago period, it added.
“We beat our top- and bottom-line guidance for the third quarter, driven by relentless execution of our PVH+ plan. Throughout the quarter, we continued to drive strong consumer engagement for both Calvin Klein and Tommy Hilfiger, and continue to build product momentum with significantly improved sell-through for the Fall 24 season across all regions and across our iconic brands, and we are coming up with a fresh and strong inventory composition. With the holiday season,” said Stefan Larsson, Chief Executive Officer (CEO) of PVH Corporation.
“We continue to manage our business prudently by remaining agile and maintaining strong cost discipline. Across the company, we are focused on driving long-term sustainable, profitable growth by unlocking the full potential of our iconic brands, creating value efficiencies to deliver significant cash flows and attractive returns for our shareholders. Jack Coughlin, Chief Financial Officer (CFO) of PVH Corporation.
Nine months (9M) of financials
For the 9M period, PVH Corp reported total revenue of $6.28 billion, down from $6.73 billion in the same period last year. Net sales contributed $5,946.3 million compared to $6.38 billion in 2023. Royalty revenue was $266.8 million, down slightly from $272.8 million a year earlier, while advertising and other revenue fell to $68.2 million from $72.9 million.
The company’s gross profit for the 9M period was $3.76 billion, down from $3.86 billion in the prior year, while SG&A expenses totaled $3.25 billion, compared to $3,326.3 million last year. Net income reached $441.3 million, up from $391.8 million in the prior year. Net income per share was $7.74, up from $6.29 YoY.
Outlook
For the full year 2024, PVH expects its revenue to decline 6 to 7 percent compared to 2023 (down 6 to 7 percent on a constant currency basis). Operating margin on a GAAP basis is projected to be 9.2 percent in 2023 compared to 10.1 percent in 2023 from prior guidance of approximately 9.8 percent. Earnings per share (EPS) estimates include an estimated negative impact of approximately $0.15 per share related to foreign currency translation from prior guidance of approximately $0.05.
The company’s revenue in the fourth quarter (Q4) of 2024 is expected to decline 6 to 7 percent compared to Q4 2023 (down 4 to 5 percent on a constant currency basis). Q4 EPS estimates include an estimated negative impact of approximately $0.09 per share related to foreign currency translation.
Fibre2Fashion News Desk (SG)
The company’s gross profit in Q3 was $1.32 billion, up from $1.33 billion in the same period last year. Selling, general and administrative (SG&A) expenses increased to $1.15 billion from $1.12 billion. The company’s gross margin rose 170 basis points to 58.4 percent compared to 56.7 percent in the year-ago period, PVH Corp said in a press release.
PVH Corporation reported Q3 2024 revenue of $2.25 billion, down 5 percent year over year, with net income of $131.9 million. For 9M 2024, revenue reached $6.28 billion, down from $6.73 billion in 2023, while net income rose to $441.3 million. The company expects full fiscal 2024 revenue to decline by 6-7 percent YoY, with Q4 revenue also projected to decline by 6-7 percent.
Net income for the period was $131.9 million, compared to $161.6 million in the same period last year. Diluted net income per common share for the period was $2.34 compared to $2.66 last year.
Direct-to-consumer (DTC) revenue was flat compared to the prior-year period (down 1 percent on a constant currency basis). Revenue at company-owned and operated stores increased 1 percent compared to the prior-year period (down 1 percent on a constant currency basis).
Revenue in the company’s owned and operated digital commerce business decreased 1 percent compared to the prior-year period (down 3 percent on a constant currency basis), primarily due to the continuation of the company’s planned strategic sales decline in Europe to drive overall higher quality sales in the region, the release said.
The company’s wholesale revenue fell 8 percent compared to the prior-year period (down 9 percent on a constant currency basis), including a 4 percent decline in sales of the Heritage brand’s women’s intimates business.
Overall revenue from the company’s international business was flat compared to the prior-year period (down 2 percent on a constant currency basis), as growth in the Asia Pacific region in local currencies more than offset the company’s planned strategic downsizing. Sales in Europe drive overall high quality sales in the region. In North America, revenue at the Tommy Hilfiger and Calvin Klein businesses fell 6 percent from the year-ago period, it added.
“We beat our top- and bottom-line guidance for the third quarter, driven by relentless execution of our PVH+ plan. Throughout the quarter, we continued to drive strong consumer engagement for both Calvin Klein and Tommy Hilfiger, and continue to build product momentum with significantly improved sell-through for the Fall 24 season across all regions and across our iconic brands, and we are coming up with a fresh and strong inventory composition. With the holiday season,” said Stefan Larsson, Chief Executive Officer (CEO) of PVH Corporation.
“We continue to manage our business prudently by remaining agile and maintaining strong cost discipline. Across the company, we are focused on driving long-term sustainable, profitable growth by unlocking the full potential of our iconic brands, creating value efficiencies to deliver significant cash flows and attractive returns for our shareholders. Jack Coughlin, Chief Financial Officer (CFO) of PVH Corporation.
Nine months (9M) of financials
For the 9M period, PVH Corp reported total revenue of $6.28 billion, down from $6.73 billion in the same period last year. Net sales contributed $5,946.3 million compared to $6.38 billion in 2023. Royalty revenue was $266.8 million, down slightly from $272.8 million a year earlier, while advertising and other revenue fell to $68.2 million from $72.9 million.
The company’s gross profit for the 9M period was $3.76 billion, down from $3.86 billion in the prior year, while SG&A expenses totaled $3.25 billion, compared to $3,326.3 million last year. Net income reached $441.3 million, up from $391.8 million in the prior year. Net income per share was $7.74, up from $6.29 YoY.
Outlook
For the full year 2024, PVH expects its revenue to decline 6 to 7 percent compared to 2023 (down 6 to 7 percent on a constant currency basis). Operating margin on a GAAP basis is projected to be 9.2 percent in 2023 compared to 10.1 percent in 2023 from prior guidance of approximately 9.8 percent. Earnings per share (EPS) estimates include an estimated negative impact of approximately $0.15 per share related to foreign currency translation from prior guidance of approximately $0.05.
The company’s revenue in the fourth quarter (Q4) of 2024 is expected to decline 6 to 7 percent compared to Q4 2023 (down 4 to 5 percent on a constant currency basis). Q4 EPS estimates include an estimated negative impact of approximately $0.09 per share related to foreign currency translation.
Fibre2Fashion News Desk (SG)
