<\/p>\n
\n\tWhen Stefan Larsson became chief executive officer of PVH Corp. in 2021, he steered the company in a new direction.\u00a0<\/p>\n
\n\tPVH\u2019s traditional impulse to acquire competitors \u2014 which brought its star brands Tommy Hilfiger and Calvin Klein into the fold \u2014 was tamped down in favor of devoting more resources to building up those names.\u00a0<\/p>\n
\n\tWhile the full realization of Larsson\u2019s PVH+ strategic plan is still a work in progress, the CEO said the company\u2019s performance last year and in the fourth quarter showed just how far it has come.\u00a0<\/p>\n
\n\t\u201cWe feel really good about how we ended the year,\u201d Larsson told WWD in an interview, pointing specifically to fourth-quarter adjusted operating margins of 10 percent.\u00a0<\/p>\n
\n\tFactoring out the 170-basis-point hit from the gross impact of tariffs, the company\u2019s margins stood at a very healthy 11.7 percent \u2014 much better than the 9 percent PVH forecast. Adjusted earnings per share came in at $3.82 \u2014 well ahead of the $3.30 analysts projected, according to Yahoo Finance.\u00a0<\/p>\n
\n\tInvestors approved and sent shares up 2.1 percent to $71.25 in after-hours trading, an increase that came on top of a 4.8 percent bump-up in regular trading.\u00a0<\/p>\n
\n\tThe quarter represents the work the company has been doing for years, tweaking its business model to become both more tuned-in to the cultural conversation and prepared to adjust when that conversation changes.\u00a0<\/p>\n
\n\tLarsson said that, over its life, the PVH+ plan has pushed comparable sales up at a compounded annual growth rate of 2.2 percent in constant currencies. He also noted that the company is closer than ever to its wholesale partners and has driven the penetration of its direct-to-consumer business to 50 percent from 44 percent. The cost base has been cut by 300 basis points while spending on marketing has risen.\u00a0\u00a0\u00a0<\/p>\n
\n\tBut PVH is also still digesting its big changes and recovering from some growing pains, for instance getting Calvin Klein shipments back on time after delays last year when the brand established a global product studio.\u00a0\u00a0<\/p>\n
\n\tOn paper, PVH\u2019s bottom line took a big fourth-quarter hit with income tax expenses of $387.7 million, which were tied to goodwill and impairment charges from earlier in the year. Net losses totaled $158.3 million for the quarter, down from earnings of $157.2 million a year earlier.\u00a0<\/p>\n
\n\tRevenues for the quarter ended Feb. 1 rose 6 percent to $2.5 billion a year earlier \u2014 flat in constant currencies, but ahead of the slight decrease the company predicted.\u00a0<\/p>\n
\n\tIt\u2019s been a long trip, but Larsson is ready to step on the accelerator.\u00a0<\/p>\n
\n\t\u201cLooking back, what we have done in a very tough background with multiple major external headwinds, we have remained steadfast in building a foundation that we now have to stand on to build sustainable profitable growth with Calvin and Tommy with pricing power and expanding margins over time,\u201d the CEO said.\u00a0<\/p>\n
\n\t\u201cThere\u2019s an ongoing journey where you will see the growth and the margin expansion coming from this targeted consumer focus, expanding the growth categories, driving the 360 consumer engagement and investing back in the marketing.\u00a0<\/p>\n
\n\t\u201cIt\u2019s an ongoing journey and I feel really good about where we are and how we are step-by-step building Tommy and Calvin into their full potential,\u201d he said.\u00a0<\/p>\n
\n\tPVH plans to increase its marketing spend by double digits this year, doubling down on the strategy that has it linking with big names who support the brands\u2019 key products and themes.\u00a0<\/p>\n
\n\tTommy Hilfiger\u2019s revenues for the quarter totaled $1.4 billion, an increase of 1 percent in constant currencies, while Calvin Klein had revenues of $1.1 billion, a decrease of 1 percent in constant currencies.\u00a0<\/p>\n
\n\tLarsson said both brands have firmly connected with their core and retooled to be better able to react when opportunities arise.\u00a0<\/p>\n
\n\tHe pointed to Hulu\u2019s \u201cLove Story: John F. Kennedy Jr. & Carolyn Bessette,\u201d a story that played out as she worked at Calvin Klein in communications.\u00a0<\/p>\n
\n\t\u201cWhat the show reflects is really Calvin\u2019s timeless, iconic power and cultural relevance,\u201d Larsson said. \u201cIt\u2019s nice to see how the relevance of Calvin Klein cuts across generations and connects to the zeitgeist.\u201d<\/p>\n
\n\tWhile there\u2019s been some commentary that the brand could have been more assertive as it sought to draw the connection to the \u201cLove Story\u201d moment, Larsson countered that that brand work the team has been doing for some time helped it sync up with that moment.\u00a0\u00a0\u00a0<\/p>\n
\n\t\u201cI\u2019m very proud about how the team has \u2014 well before \u2018Love Story\u2019 and over the past four years \u2014 gone back to the DNA of Calvin, which really collided with the culture of fashion in the \u201990s,\u201d he said. \u201cWe couldn\u2019t be better positioned and you see it in \u2014 the bestselling denim is the \u201990s fit in Calvin Klein. You see it in underwear, where we have driven innovation and newness in the iconic underwear. You see it in the \u201990s edits on our e-commerce site.\u201d\u00a0\u00a0<\/p>\n
\n\tCalvin Klein has also been working directly with a host of big names, including Jung Kook, Raphinha and Dakota Johnson.\u00a0<\/p>\n
\n\tTommy Hilfiger, too, is making himself heard, particularly in sports through its partnership with Cadillac Formula 1, Liverpool Football Club and, most recently, Travis Kelce, who, in addition to being Taylor Swift\u2019s fianc\u00e9, is the football legend who plays for the Kansas City Chiefs.<\/p>\n
\n\tLarsson said the addition of Kelce as a global brand ambassador and creative collaborator was being \u201cvery well received by the consumer.\u201d\u00a0And there\u2019s much more to come from the partnership.<\/p>\n
\n\tAll the star power has helped PVH cut through.<\/p>\n
\n\tLarsson said Calvin Klein has 44 million followers over four social platforms with 4 percent engagement. Tommy Hilfiger has 31 million followers and the same engagement, which is four-times better than its competitors.\u00a0<\/p>\n
\n\t\u201cIf you take leading reach with four-times the engagement, it\u2019s incredibly powerful,\u201d he said.<\/p>\n
\n\tNow, it\u2019s a matter of harnessing that power.\u00a0\u00a0<\/p>\n
\n\tFourth-quarter revenues in Europe, the Middle East and Africa \u2014 the company\u2019s largest market \u2014 tallied $1.2 billion, a 3 percent drop in constant currencies.\u00a0<\/p>\n
\n\tBusiness in the Americas rose 4 percent to $764.7 million.\u00a0<\/p>\n
\n\tAnd the Asia-Pacific region tallied revenues of $436.7 million, a 2 percent drop in constant currency that reflected a change in the timing of the Lunar New Year festivities.\u00a0<\/p>\n
\n\tPVH\u2019s revenues increased 3 percent to $9 billion for all of 2025.\u00a0<\/p>\n
\n\tThis year, the company is projecting its top line will be flat, or up slightly on a constant currency basis.\u00a0<\/p>\n
\n\tAdjusted operating margins are projected at about 8.8 percent. And earnings per share are slated to range from $11.80 to $12.10, straddling the $11.88 analysts had penciled in.<\/p>\n
#PVHs #Earnings #Top #Expectations<\/p>\n","protected":false},"excerpt":{"rendered":"
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