PVH Corp. announced a better-than-expected second quarter on Wednesday, driven by strength in its Calvin Klein and Tommy Hilfiger brands, as well as its international business. The New York-based fashion company said net sales for the three months ended July 2, 2023, increased 1% to $2.26 billion, or 3% on a constant-currency basis, outperforming analysts’ consensus of $2.23 billion. The company’s net income fell 23% to $146.1 million, or $1.37 per share, from $190 million, or $1.76 per share, a year earlier. Adjusted for one-time items, earnings per share were $1.63, above estimates of $1.58. PVH’s gross margin contracted by 130 basis points to 56.3%, reflecting higher product costs and foreign currency headwinds. However, the company said it managed to offset these pressures through cost-saving initiatives and price increases. The company’s Calvin Klein brand saw a 2% increase in revenue to $886 million, while its Tommy Hilfiger brand grew 4% to $1.02 billion. PVH’s international business grew 5% to $1.34 billion, with strong performances in Europe and Asia. In North America, sales declined 2% to $919.6 million. By channel, wholesale revenue grew 5% to $1.29 billion, while retail revenue declined 4% to $966.8 million. PVH’s digital revenue increased 11% to $309.7 million, representing 14% of total sales. Looking ahead, PVH raised its full-year earnings forecast, citing strong demand and cost-saving initiatives. The company now expects adjusted EPS for fiscal 2023 to be in the range of $7.10 to $7.30, up from its previous guidance of $6.90 to $7.10. PVH also reaffirmed its long-term financial targets, including achieving $12 billion in revenue and $2.00 in adjusted EPS by fiscal 2025. In a statement, PVH Chairman and CEO Stefan Larsson said: .
PVH Beats Expectations in Q2, Raises Full-Year Earnings Forecast
