PVH Corporation, the parent company of renowned fashion labels like Tommy Hilfiger and Calvin Klein, has announced a 2 percent year-on-year (YoY) rise in revenue to $2.158 billion for the first quarter (Q1) of fiscal 2023 (FY23), which is a 5 percent surge on a constant currency basis.
The company experienced significant growth in its direct-to-consumer business, which increased by 8 percent YoY (12 percent on a constant currency basis). However, the wholesale business recorded a 2-per cent YoY decrease (1 percent increase on a constant currency basis).
The digital commerce business saw varied results, with revenue from owned and operated digital commerce increasing 4 percent YoY (8 percent on a constant currency basis). However, total digital revenue dropped 3 percent YoY (decreased 1 percent on a constant currency basis). Despite this setback, digital penetration as a percentage of total revenue stood at approximately 20 percent, the company said in a press release.
PVH Corporation’s earnings before interest and taxes (EBIT) hit $199 million in Q1 FY23, inclusive of a $9 million negative impact due to foreign currency translation. This figure is slightly lower than the $210 million reported in the previous year’s same quarter. Earnings per share (EPS) marked a 10 percent increase compared to the previous year, coming in at $2.14, despite the negative impact of $0.11 per share related to foreign currency translation.
Among PVH Corporation’s notable brands, Tommy Hilfiger’s revenue surged by 5 percent compared to the prior year (8 percent on a constant currency basis), while Calvin Klein’s revenue remained flat (3 percent increase on a constant currency basis). Heritage Brands, however, experienced a 12 percent decrease compared to the prior year period.
The company’s inventory was 24 percent higher than in the first quarter of the prior year, the release added.
“We delivered a strong start to the year with first quarter performance ahead of our guidance for both revenue and earnings, driven by our disciplined execution of the PVH+ Plan. We are reaffirming our guidance for the year, reflecting the confidence we have in our ability to continue to deliver on our near-term commitments, while maintaining a strong focus on our long-term vision to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, and position PVH as one of the best performing brand groups in our sector,” said Stefan Larsson, Chief Executive Officer.
