For the first quarter (Q1) of FY25, the company expects revenue to be flat or decrease by up to 2 per cent year-over-year (YoY). Non-GAAP EPS is anticipated to range between $2.10 and $2.25, including an estimated negative impact of about $0.05 per share from foreign currency translation. Interest expense for the quarter is projected at approximately $20 million.
“Looking ahead, we are positioning the company for long-term, sustainable growth and remain relentlessly focused on fuelling our brand-building consumer flywheel to unlock our full potential around the world,” said Stefan Larsson, chief executive officer (CEO) at PVH Corp. “In North America, we will continue to drive a double-digit EBIT margin, in Europe our Fall ‘25 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region.”
PVH Corp has reported a 6 per cent revenue decline to $8.653 billion in FY24, impacted by the sale of its women’s intimate’s business and the 53rd week in 2023.
Tommy Hilfiger and Calvin Klein revenues dipped, while Heritage Brands plunged 57 per cent.
FY24 non-GAAP EPS rose to $11.74.
For FY25, revenue is expected to be flat or slightly higher, with EPS projected between $12.40 and $12.75.
For the full fiscal 2024 (FY24) ended February 2, 2025, PVH Corp’s consolidated revenue declined by 6 per cent YoY to $8.653 billion, or 5 per cent on a constant currency basis. The decrease includes a 2 per cent impact from the sale of the Heritage Brands women’s intimate’s business and a 1 per cent impact from the 53rd week in 2023.
Brand-wise, Tommy Hilfiger revenue fell 5 per cent YoY (4 per cent in constant currency), with international revenue down 7 per cent due to a planned strategic reduction of sales in Europe, while North America remained flat. Calvin Klein revenue declined 1 per cent, with international revenue down 2 per cent and North America down 1 per cent. Heritage Brands revenue dropped 57 per cent, including a 45 per cent decline from the sale of its women’s intimate’s business.
In FY24, EBIT on a GAAP basis stood at $772 million. EPS on a GAAP basis was $10.56, while non-GAAP EPS rose to $11.74. Both figures include a $0.18 per share negative impact from foreign currency translation.
The effective tax rate declined to 15.2 per cent on a GAAP basis and 16.7 per cent on a non-GAAP basis. The reduction in tax rates is mainly due to a tax benefit in Q2 FY24 from the favourable settlement of a multi-year audit in an international jurisdiction, PVH Corp said in a press release.
PVH Corp’s revenue in the fourth quarter (Q4) of FY24 decreased by 5 per cent YoY (decreased 2 per cent on a constant currency basis). The overall revenue in the company’s international businesses decreased 6 per cent.
Region-wise, North America’s revenue in the Tommy Hilfiger and Calvin Klein businesses combined increased 1 per cent compared to the prior fiscal period, as the benefit from a shift in timing of wholesale shipments from the Q3 into Q4 was largely offset by a decline from the 53rd week in 2023.
Direct-to-consumer (DTC) revenue in Q4 FY24 decreased 5 per cent compared to the prior year period (decreased 2 per cent on a constant currency basis). Revenue from operated stores decreased 4 per cent YoY (decreased 1 per cent on a constant currency basis), and revenue from digital commerce business decreased 10 per cent YoY (decreased 8 per cent on a constant currency basis), as growth in North America was more than offset by the continuation of the company’s planned strategic reduction of sales in Europe to drive overall higher quality of sales in the region.
The wholesale revenue of the company in Q4 decreased 5 per cent YoY. (decreased 2 per cent on a constant currency basis), including a 2 per cent reduction resulting from the sale of the Heritage Brands women’s intimate’s business.
The gross margin in Q4 FY24 was 58.2 per cent compared to 60.3 per cent in Q4 FY23. The decrease reflects the impacts of an increased promotional environment, an unfavourable shift in channel mix, and higher freight costs, added the release.
“In 2024, we beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin. In a challenging macro, we delivered another year of strong profitability in North America, drove sequential improvements in our wholesale order books in Europe while improving our quality of sales, and we achieved our third consecutive year of growth in Asia Pacific, on a constant currency basis,” said Larsson.
Fibre2Fashion News Desk (SG)