PVH finishes 2022 strong with better-than-expected Q4 sales
PVH Corp. announced on Monday revenues decreased 1% to $9.024 billion for the full-year 2022, following a better-than-expected fourth quarter where sales increased by single digits for the three-month period.
The New York-based company said fourth-quarter revenues grew to $2.489 billion, up 2%, beating prior guidance of a decrease of 4% for the final quarter.
PVH recorded growth in both its Tommy Hilfiger and Calvin Klein brand businesses, with strong revenue growth in Europe, as well as growth in North America, particularly in the direct-to-consumer business, "despite the challenging global macroeconomic environment." The company added it continued to experience "negative impacts" from the Covid-19 pandemic in China during the quarter.
For the year, Tommy Hilfiger revenues decreased 1%, offset partially by a 3% uptick in Calvin Klein revenues for the 12 months. The company's heritage brands segment weighed during the year, plummeting 26%, including a 25% decrease resulting from the company's exit from its heritage brands retail business.
Net income for the year fell to $200.4 million in 2022, from $952 million in 2021.
“We delivered strong fourth quarter performance with stronger than expected high-single digit constant currency revenue growth and earnings above guidance," said Stefan Larsson, chief executive officer, PVH.
"Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy enabled us to compete to win despite the challenging macro situation. Since we introduced our PVH+ Plan, we have made significant progress all around the world in driving brand desirability by getting closer to the consumer, creating great products and delivering very strong consumer engagement through impactful talent partnerships.”
Looking ahead, 2023 revenue is projected to increase 3% to 4%, as compared to 2022, with EPS projected to be approximately $10.00, compared to $3.03.
“We are well positioned to achieve double-digit EPS growth in 2023 and have a multi-year opportunity ahead of us to drive meaningful top and bottom-line growth," said Zac Coughlin, chief financial officer, PVH.
"Our plan is built on two of the most powerful brands in the fashion industry, and we are doubling down on the PVH+ Plan growth drivers and focusing on what is within our control to drive sustainable and profitable growth, generate strong cash flows, and deliver attractive returns for our shareholders.”
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