American firm PVH Corp's revenue rises 2% to $9.21 bn in FY23

The Tommy Hilfiger brand led the way with a 4 per cent revenue increase, highlighted by a robust 6 per cent growth in North America. International revenues for Tommy Hilfiger also rose by 3 per cent, demonstrating the brand's enduring appeal across global markets. Calvin Klein wasn't far behind, posting a 3 per cent increase in revenue, with an impressive 10 per cent surge in its international segment. However, Calvin Klein's North American business faced challenges, with a 7 per cent decline primarily attributed to a dip in wholesale activities.

On the other hand, the company's Heritage Brands segment experienced an 18 per cent decrease in revenue, partly due to the divestiture of its women's intimates business, PVH Corp said in a press release.

PVH Corp's EBIT on a GAAP basis reached $929 million and a slight adjustment on a non-GAAP basis to $931 million. Earnings per share (EPS) on a GAAP basis significantly increased to $10.76 from $3.03 in FY22, while non-GAAP EPS also rose to $10.68 from $8.97.

The fourth quarter of fiscal 2023 (Q4 FY23) saw the company's revenue remaining stable compared to the same period last year, with international businesses recording a 4 per cent growth. Direct-to-consumer channels were particularly strong, with a 9 per cent increase in revenue, buoyed by significant gains in both physical and digital retail sectors. Wholesale revenue, however, faced a 10 per cent decline.

Notably, the company's gross margin improved to 60.3 per cent from 55.9 per cent in the previous year, benefiting from reduced freight costs and a favourable shift in regional and channel mix, coupled with lower product costs. Inventory levels were also strategically reduced by 21 per cent.

Earnings per share for Q4 FY23 showed a marked improvement, with GAAP EPS at $4.55, up from $2.18 in the prior year, and non-GAAP EPS at $3.72 compared to $2.38.

“We delivered a strong fourth quarter and fiscal 2023, generating high single-digit direct-to-consumer growth, with growth in both Calvin Klein and Tommy Hilfiger and all regions. We significantly expanded our gross margins, drove strong pricing power, and are beginning to realise the benefits from the early buildout of our demand-driven supply chain, which allowed us to decrease inventory 21 per cent to last year with much better stock freshness to start the new spring season,” said Stefan Larsson, chief executive officer.

Fibre2Fashion News Desk (DP)