US' PVH Corp projects 3-4% revenue growth for FY23

06 Jun '23

2 min read

Pic: Yuliasis / Shutterstock.com

Insights

US fashion firm PVH Corp projects 3-4 per cent revenue growth in FY23, with EPS estimated at $10.
The company aims to maintain an operating margin of approximately 10 per cent for FY23.
Interest expense is projected to increase to approximately $100 million.
PVH Corp's Q2 FY23 guidance predicts single-digit revenue increase and EPS of $1.70.

PVH Corporation, the parent company of fashion labels like Tommy Hilfiger and Calvin Klein, has announced its outlook for fiscal 2023 (FY23). The company foresees a 3-4 per cent increase in revenue for FY23 when compared to the previous year. On a constant currency basis, this growth is estimated to be around 2-3 per cent.

The company aims to maintain an operating margin of approximately 10 per cent for FY23. EPS is projected to be approximately $10 compared to $3.03 on a GAAP basis and $8.97 on a non-GAAP basis in FY22, PVH Corp said in a media release.

Interest expense is projected to increase to approximately $100 million compared to $83 million in 2022 primarily due to higher interest rates.

“We drove strong first quarter results which included mid-single-digit constant currency revenue growth and double-digit EPS growth. We have growing confidence in our execution of the PVH+ Plan and our full year outlook. As such, we are making strategic investments to drive our multi-year brand-led growth in important areas such as marketing. We are well positioned to achieve double-digit EPS growth in 2023, while at the same time, we expect to generate significant cash flow,” said Zac Coughlin, chief financial officer.

For the second quarter (Q2) of FY23, revenue is projected to increase low single-digits as compared to the second quarter of FY22. EPS is projected to be approximately $1.70 compared to $1.72 on a GAAP basis and $2.08 on a non-GAAP basis in the second quarter of FY22.

Fibre2Fashion News Desk (DP)

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