Calvin Klein Parent PVH's Stock Falls After Q2 Results: Sees Q3 Revenue Decline, Guides Q3 EPS Below Estimates

Author: Erica Kollmann | August 27, 2024 05:16pm

PVH Corp. (NYSE:PVH) shares are trading lower after reporting its second-quarter financial results, guided a third-quarter revenue decline and issued earnings guidance below estimates after Tuesday's closing bell. Here's a look at the key figures from the report. 

The Details: PVH reported quarterly earnings of $3.01 per share, which beat the analyst consensus estimate of $2.29 by 31.44%. Quarterly sales came in at $2.074 billion which beat the analyst consensus estimate and is a 6.03% decrease from the same period last year.

• Revenue in the company’s international businesses decreased by 4% compared to the prior year period, primarily due to the challenging consumer environment in Asia Pacific, particularly in China and Australia, and the continuation of planned strategic reduction in sales in Europe to drive overall higher quality of sales in the region.
• In North America, revenue in the Tommy Hilfiger and Calvin Klein businesses combined increased by 1% compared to the prior year period, with modest growth in the wholesale business and a low single-digit decline in the direct-to-consumer business.
• Direct-to-consumer revenue decreased 5% compared to the prior year period.
• Revenue in the company’s owned and operated stores decreased by 4% compared to the prior year period, primarily driven by recent softness in the consumer backdrop.
• Revenue in the company’s owned and operated digital commerce business declined 6% compared to the prior year period, primarily due to the continuation of the company’s planned strategic reduction in Europe.

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“We delivered on our top- and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan,” commented Stefan Larsson, CEO of PVH.

“For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fueled significant gross margin expansion.”

Outlook: PVH expects third-quarter revenue to decrease by 6% to 7% and sees earnings of approximately $2.50 per share versus the $3.12 estimate. The company reaffirmed the fiscal year 2024 revenue decrease of 6% to 7% and raised its earnings outlook from between $11.00 and $11.25 per share to between $11.55 and $11.80 per share versus the estimate of $11.31.

PVH Price Action: According to Benzinga Pro, PVH shares are down 7.29% after-hours at $96.85 at the time of publication Tuesday.

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