PVH Corp. reported a 10 percent drop in sales to USD 1.95 billion in the first quarter, as the U.S. apparel firm’s sales remained buoyant in Asia Pacific.
SEE ALSO: PVH names Lea Rytz Goldman new Tommy Hilfiger global brand president
The owner of Calvin Klein and Tommy Hilfiger brands said quarterly international revenues fell 9 percent, as solid growth in the Asia Pacific region was more than offset by a revenue decline in Europe.
In North America, revenue in the Tommy Hilfiger and Calvin Klein businesses combined was up 3 percent, with modest growth in both the direct-to-consumer and wholesale businesses, including the favorable impact of a shift in the timing of wholesale shipments from the second quarter into the first quarter.
Direct-to-consumer revenue increased 1 percent, and revenue in the company’s owned and operated stores increased 3 percent, with growth in all regions. However, revenue in the company’s owned and operated digital commerce business declined 6 percent, with growth in the North America and Asia Pacific regions more than offset by a planned reduction in Europe.
Furthermore, wholesale revenue decreased 17 percent, primarily due to a 6 percent reduction related to the sale of the Heritage Brands women’s intimates business and the planned reduction in revenue in Europe. Wholesalers also continued to take a cautious approach, particularly in Europe, the New York-based company added.
By brand, Tommy Hilfiger revenue decreased 10 percent, while Calvin Klein revenue was flat for the three months ending May 5.
Net income for the quarter grew to USD 151.4 million, compared to USD 136 million in the prior-year period.
“We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter. We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe,” said Stefan Larsson, chief executive officer, PVH Corp.
Coinciding with the earnings update, PVH announced that Martijn Hagman, CEO of Tommy Hilfiger global and PVH Europe, will be leaving the company.
Lea Rytz Goldman, Tommy Hilfiger global president, will lead the global brand, while David Savman, PVH’s chief supply chain officer, will serve as Interim CEO for PVH Europe. The company has launched a search for a new European leader.