Calvin Klein owner PVH Corp. posted a 6 percent sales decline to USD 2.2 billion in the second quarter, citing a weak Asia-Pacific market for the demise.
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The owner of Tommy Hilfiger said international revenues decreased 4 percent, hurt by a challenging consumer environment in Asia Pacific, particularly in China and Australia, a “strategic” reduction in sales in Europe to drive overall higher quality of sales in the region.
By brand, global Calvin Klein sales fell 1 percent, and Tommy Hilfiger sales decreased 4 percent, hindered by international declines.
Elsewhere, Heritage Brands revenue decreased 60 percent, which included a 56 percent decrease resulting from the sale of the the division’s women’s intimates business.
Despite the declining sales result, PVH said quarterly net income grew to USD 158 million during the three months, compared to net income of USD 94.2 million, last year. Earnings per share were USD 2.80, compared to USD 1.50 in the prior-year period.
“We delivered on our top- and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fueled significant gross margin expansion,” said Stefan Larsson, chief executive officer, PVH.
“Step by step, we continue to build strength in product, consumer engagement and marketplace execution, supported by the build out of our data and demand-driven supply chain. North America continues to be a strong proof point, in Europe we are on plan with our targeted quality of sales initiatives, and in Asia Pacific, we continue to drive strong brand engagement to win the big consumer moments. Looking ahead, as we navigate an increasingly challenging global macroeconomic backdrop, we remain relentlessly focused on delivering brand-accretive, long-term growth.”
Earlier this year, PVH reported solid growth in the Asia Pacific region during its first quarter, with its latest update highlighting a softening in consumer expenditure in the region.