The gross profit of the company in Q3 was $1.32 billion, compared to $1.33 billion in the same period last year. Selling, general, and administrative (SG&A) expenses reached $1.15 billion, up from $1.12 billion. The gross margin of the company increased 170 basis points to 58.4 per cent compared to 56.7 per cent in the prior year period, PVH Corp said in a press release.
PVH Corp has reported a revenue of $2.25 billion in Q3 2024, down 5 per cent YoY, with a net income of $131.9 million.
For 9M 2024, revenue reached $6.28 billion, a decline from $6.73 billion in 2023, while net income rose to $441.3 million.
The company expects full fiscal 2024 revenue to drop 6-7 per cent YoY, with Q4 revenue also projected to decline by 6-7 per cent.
The net income in this period was $131.9 million, compared to $161.6 million in the same period last year. Diluted net income per common share was $2.34 for the period, compared to $2.66 last year.
The direct-to-consumer (DTC) revenue was flat compared to the prior year period (down 1 per cent on a constant currency basis). Revenue in the company’s owned and operated stores increased 1 per cent compared to the prior year period (decreased 1 per cent on a constant currency basis).
Revenue in the company’s owned and operated digital commerce business decreased 1 per cent compared to the prior year period (down 3 per cent on a constant currency basis), primarily due to the continuation of the company’s planned strategic reduction of sales in Europe to drive overall higher quality of sales in the region, said the release.
The wholesale revenue of the company decreased 8 per cent compared to the prior year period (decreased 9 per cent on a constant currency basis), including a 4 per cent reduction resulting from the sale of the Heritage Brands women’s intimate’s business.
The overall revenue of company’s international businesses was flat compared to the prior year period (decreased 2 per cent on a constant currency basis), as growth in the Asia Pacific region in local currency was more than offset by the continuation of the company’s planned strategic reduction of sales in Europe to drive overall higher quality of sales in the region. In North America, revenue in the Tommy Hilfiger and Calvin Klein businesses combined decreased 6 per cent compared to the prior year period, it added.
“We beat our top-and bottom-line guidance for the third quarter, fuelled by our relentless execution of the PVH+ plan. Throughout the quarter, we drove powerful consumer engagement for both Calvin Klein and Tommy Hilfiger, and continued to build momentum in product, with significantly improved sell-throughs for the Fall 24 season across all regions and both our iconic brands, and we are coming into the holiday season with a fresh and strong inventory composition,” said Stefan Larsson, chief executive officer (CEO) at PVH Corp.
“We continue to manage our business prudently by remaining agile and maintaining strong expense discipline. Across the Company, we are focused on driving sustainable, profitable growth long-term by unlocking the full potential of our iconic brands, increasing quality of sales and generating cost efficiencies to deliver significant cash flow and attractive returns for our shareholders,” said Zac Coughlin, chief financial officer (CFO) at PVH Corp.
Nine-month (9M) financials
For the 9M period, PVH Corp has reported total revenue of $6.28 billion, a decline from $6.73 billion in the same period the previous year. Net sales contributed $5,946.3 million, compared to $6.38 billion in 2023. Royalty revenue was $266.8 million, slightly lower than $272.8 million in the prior year, while advertising and other revenue reached $68.2 million, down from $72.9 million.
The gross profit of the company in 9M period amounted to $3.76 billion, down from $3.86 billion in the previous year, SG&A expenses totalled $3.25 billion, compared to $3,326.3 million last year. The net income reached $441.3 million, up from $391.8 million in the previous year. Diluted net income per share was at $7.74, up from $6.29 YoY.
Outlook
For the full year 2024, PVH expects its revenue to decrease 6 to 7 per cent compared to 2023 (down by 6 to 7 per cent on a constant currency basis). The operating margin on GAAP basis is projected to be 9.2 per cent compared to 10.1 per cent in 2023 from the previous guidance of approximately 9.8 per cent. Earnings per share (EPS) projections include the estimated negative impact of approximately $0.15 per share related to foreign currency translation from the previous guidance of approximately $0.05.
The company’s revenue in the fourth quarter (Q4) of 2024 is projected to decrease 6 to 7 per cent compared to Q4 2023 (decrease of 4 to 5 per cent on a constant currency basis). Q4 EPS projections include the estimated negative impact of approximately $0.09 per share related to foreign currency translation.
Fibre2Fashion News Desk (SG)
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