PVH swings to Q3 loss, but revenue beats estimates

Image: Tommy Hilfiger Tommy Hilfiger owner PVH Corp fell into the red in the third quarter despite stronger-than-expected revenue. The US fashion giant made a net loss of 186.7 million dollars in the period compared to a profit of 279.7 million dollars a year earlier. Revenue of 2.281 billion dollars was 2 percent below the previous year, but 7 percent higher on a constant currency basis. “We are pleased with our third quarter results as we delivered high single-digit constant currency top-line growth,” PVH chief executive Stefan Larsson told investors. “This was ahead of our expectations, despite having to navigate continuing macroeconomic headwinds,” he said. Breaking it down by brand, revenue at Tommy Hilfiger dropped 4 percent, but was up 7 percent on a constant currency basis, while revenue at Calvin Klein was up 1 percent, or up 9 percent at constant currency rates. International business shines “Our international businesses continued to execute well across both brands, even as macro conditions remain challenging in Europe and Covid impacts continued in Asia,” Larsson said. Meanwhile in North America, he said the company is “encouraged by the positive performance indicators we are seeing” although “we recognize that we are in the early stages of a multi-year journey to unlock this region’s full opportunity”. Based on its third-quarter results, PVH expects revenue to be at the top end of its previous guidance range, so it expects to report a drop of around 3 percent, or an increase of 4 percent on a constant currency basis. However, it now expects full-year earnings per share on a GAAP basis of approximately 1.37 dollars, down from its previous estimate of around 7.64 dollars.
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