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US clothing brand PVH records Q3 2021 revenue of $2.3 billion

04 Dec '21
3 min read
Pic: Tea | Dreamstime.com
Pic: Tea | Dreamstime.com

PVH Corp’s revenue grew by 10 per cent to $2.3 billion in third quarter (Q3) of 2021 compared to the corresponding quarter of previous fiscal, despite worsening logistics disruptions in October, including significant US port delays, which resulted in a 4 per cent negative impact from an unplanned shift in the timing of US wholesale shipments from Q3 into Q4.

Gross margin for the quarter also increased over 300 basis points compared to third quarter 2019 pre-pandemic levels and drove operating margin expansion.

The overall gross margin in the third quarter was 57.7 per cent as compared to 52 per cent in the corresponding period of prior year, majorly due to more full price selling and a favourable shift in regional sales mix.

One of the brands under PVH, Tommy Hilfiger business recorded an increase of 12 per cent compared to the same period of the previous fiscal, along with a 11 per cent growth in its international segment and 13 per cent growth in its North American segment.

Likewise, Calvin Klein business grew by 22 per cent compared to the third quarter of FY 2020, which includes a 19 per cent increase in Calvin Klein International revenue and a 27 per cent increase in Calvin Klein North America revenue.

Total direct-to-consumer revenue for the third quarter was flat compared to the prior year period, inclusive of a 5 per cent reduction from the exit of the Heritage Brands Retail business. Digital commerce increased 21 per cent as compared to the prior year period on top of exceptionally strong growth in 2020.

The company’s revenue in 2021 is projected to increase 27 per cent to 28 per cent (increase 25 per cent to 26 per cent on a constant currency basis) as compared to 2020.

“Our third quarter earnings significantly exceeded our guidance, led by our international businesses, and we achieved overall stronger than expected margin performance across brands. This reflects the strength of our global iconic brands, Calvin Klein and Tommy Hilfiger, and the pricing power we are able to achieve through strength in product, consumer engagement, and consumer experience in the digitally led marketplace. While COVID-related challenges remain, we delivered double-digit revenue growth, which would have been even stronger and above guidance, if not for the greater than anticipated impact of US port delays that pushed wholesale shipments into the fourth quarter,” Stefan Larsson, the chief executive officer of the company, commented in a press release.

During the third quarter of 2021, the company also repurchased approximately 1.4 million shares of its common stock for $149 million under the $2 billion stock repurchase programme authorised by the board of directors through June 3, 2023.

Fibre2Fashion News Desk (KD)

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