Jangoulun Singsit
4 min read
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The company's EMEA segment saw a revenue rise of 5%, fuelled by both wholesale and direct-to-consumer channels. In the Americas, revenues climbed by 7%, predominantly due to wholesale operations.
Conversely, APAC revenues experienced a 13% decline in the same quarter, with an approximate 3% drop ascribed to the timing of the Lunar New Year holiday.
Tommy Hilfiger brand revenues increased by 3% in Q1 FY25, while Calvin Klein's revenues remained unchanged from the prior year.
PVH's owned and operated store revenues fell by 5%, whereas digital commerce revenues from owned and operated platforms rose by 3%.
PVH Corp chief executive officer Stefan Larsson stated “In Q1, we continued to tap into the global consumer love for Calvin Klein and Tommy Hilfiger, delivering revenue growth versus last year and ahead of guidance.
“Calvin Klein saw one of its most impactful product launches in years with the Icon Cotton Stretch franchise, amplified by the viral Bad Bunny campaign. Tommy Hilfiger tapped into its lifestyle DNA with rich product storytelling around seasonal newness of Tommy classics to drive growth and built momentum for the brand’s collaboration with the biggest movie launch of the summer: F1 The Movie.”
PVH reported a net loss of $44.8m over the quarter (Q1), compared to net income of $151.4m recorded a year earlier. This translates to a diluted net loss per common share of $0.88 compared to earnings per share of $2.59 previously.
Gross profit also saw a downturn, settling at $1.16bn compared to $1.19bn in Q1 FY24.
Gross margin decreased to 58.6% in Q1 FY25, down from 61.4% in the prior year period, reflecting changes in channel mix, increased promotional activity, transition costs related to in-house wholesale business for women's products previously licensed out, and higher freight costs coupled with additional discounts offered to customers due to delivery delays in Calvin Klein products.
PVH recorded a loss before interest and taxes of $332m, which includes a $4m negative impact from foreign currency translation, compared to earnings before interest and taxes (EBIT) of $205m in the prior year period.
On a non-GAAP basis, EBIT was reported at $160m, inclusive of the aforementioned $4m negative impact from currency translation, marking a decrease from $195m in the prior year period due largely to gross margin declines.
Looking ahead to the full fiscal year 2025, PVH maintains its revenue outlook suggesting flat growth or a slight increase on a constant currency basis.
