American fashion firm PVH Corp had revenue of $9.024 billion in FY22

Fashion and lifestyle brand PVH Corp fell 1 percent to $9.024 billion in fiscal 2022 (FY22) from the previous year. However, revenue rose 5 percent on a constant currency basis. The drop in revenue was attributed to a decline in revenue at Tommy Hilfiger, which fell 1 percent, while Calvin Klein’s revenue rose 3 percent.

Tommy Hilfiger’s international revenue fell 4 percent in FY22, but revenue in the North America region grew 9 percent. Calvin Klein’s international revenue, on the other hand, rose 1 percent, while North American revenue rose 8 percent, PVH Corp. said in a press release.

PVH Corp revenue fell 1 percent to $9.024 billion in FY22, Tommy Hilfiger fell 1 percent and Calvin Klein rose 3 percent. Direct-to-consumer revenue rose 4 percent in Q4 FY22, but total digital revenue fell 8 percent. FY23 guidance projects revenue growth of 3-4 percent and EPS of around $10.

In FY22, the company’s earnings before interest and taxes (EBIT) on a GAAP basis were $471 million, which included a negative impact of $94 million due to foreign currency translation. However, EBIT on a non-GAAP basis was $857 million, compared to $983 million in FY21.

The company’s EPS on a GAAP basis was $3.03 in FY22, down from $13.25 in 2021. However, on a non-GAAP basis, EPS was $8.97, down from $10.15 in FY21.

For the fourth quarter (Q4) of FY22, revenue rose 2 percent to $2.489 billion compared to the prior year, with the impact of the war in Ukraine down 1 percent. Tommy Hilfiger’s revenue rose 3 percent, Calvin Klein’s revenue rose 3 percent.

The company’s EBIT on a GAAP basis for Q4 FY22 was $297 million, compared to $223 million in Q4 FY21. Meanwhile, EBIT on a non-GAAP basis was $215 million, compared to $175 million in the prior-year period. Moreover, gross margin was 55.9 percent in Q4 FY21 compared to 58.3 percent in the previous year period.

PVH’s direct-to-consumer revenue grew by 4 per cent in Q4 FY22 over the year-ago period, while wholesale revenue was flat over the year-ago period. Additionally, total digital revenue was down 8 percent compared to exceptionally strong revenue in the prior-year period.

The company’s FY23 guidance projects revenue growth of 3 percent to 4 percent over FY22 On a constant currency basis, growth is estimated to be 2-3 percent. Operating margin is expected to be around 10 percent. Estimated EPS for 2023 is around $10, up from $3.03 on a GAAP basis and $8.97 on a non-GAAP basis in FY22, the release added.

Stefan Larson, Chief Executive Officer, said, “We delivered a stronger-than-expected fourth-quarter performance with high-single-digit constant currency revenue growth and earnings above guidance. The disciplined execution of our PVH+ plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy has enabled us to compete to win despite challenging macro conditions.”

“Looking ahead, we enter 2023 with significant momentum, and we will continue to execute the PVH+ plan with discipline towards our long-term vision to make Tommy Hilfiger and Calvin Klein the world’s most desirable lifestyle brands and the highest performing brand group in our sector.”

Fibre2Fashion News Desk (DP)

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