PVH Corp. recorded a revenue increase of 4 percent to USD 2.207 billion for the second quarter, on the back of strong growth in the American fashion giant’s Asia Pacific region, especially China.
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The New York-based owner of the Tommy Hilfiger and Calvin Klein brands said quarterly sales were driven by growth in both businesses, pushed on by a solid performance in the company’s international businesses, particularly the Asia Pacific region.
By brand, Calvin Klein revenue increased 3 percent, with the brand’s international revenue increasing 11 percent. Tommy Hilfiger revenue increased 6 percent, with Tommy Hilfiger international revenues also up 6 percent.
In China alone, PVH clocked 20 percent growth in local currency, reflecting continued recovery after the lifting of Covid restrictions in the fourth quarter of 2022.
In the past year, PVH has launched star-studded campaigns that tapped into the explosive popularity of South Korean singers such as BTS’ Jung Kook for Calvin Klein Underwear and Calvin Klein Jeans, and Blackpink’s Jennie Kim, who collaborated with Calvin Klein for a capsule collection released globally on May 10.
Most recently, the brand unveiled its fall 2023 campaign this August, featuring the return of Jennie and Jung Kook, among other celebrities.
Net income for the quarter ending July 30 fell to USD 94.2 million from USD 115.3 million, while earnings per share dipped to USD 1.50, compared to USD 1.72.
“We delivered another strong quarter across both Calvin Klein and Tommy Hilfiger driven by the disciplined execution of our long-term, brand-building growth plan, the PVH+ Plan. We generated double-digit revenue growth in our direct-to-consumer business in both our stores and in e-commerce, through our relentless focus on building brand desirability through product, consumer engagement and marketplace execution,”said Stefan Larsson, chief executive officer, PVH.
“We are increasing our EPS outlook for the year, excluding restructuring charges, based on the confidence we have in our ability to execute in the back half of the year, while continuing to successfully navigate the macroeconomic environment. As we lean into the five key growth drivers of the PVH+ Plan, we’re continuing to gain traction by connecting our consumer-facing execution with an increasingly demand-driven operating engine to fuel long-term profitable growth.”
Looking ahead, PVH Corp. said full-year 2023 revenue is projected to increase 3 percent to 4 percent as compared to 2022, while earnings per share is forecast to be approximately USD 9.60, compared to USD 3.03 in the prior-year period.