PVH Corp. beats Q4 forecasts despite net loss

Tommy Hilfiger store Credits: PVH Corp. PVH Corp., parent to Tommy Hilfiger and Calvin Klein, showed resilience in its fourth quarter, beating analysts' forecasts despite a reported net loss. The company's revenue performance and forward-looking statements sparked confidence, boosting its stock price. Fourth quarter 2024 revenues fell 3 percent to 2.49 billion dollars, compared to the prior year. However, this surpassed analysts' projections of a potential 7 percent decline. A net loss of 176.3 million dollars was reported, contrasting with a net income of 147.1 million dollars in the prior year period. CEO Stefan Larsson stated, "We exceeded both our revenue and earnings guidance in the fourth quarter, driven by the strength of our brands and execution of our strategic priorities." PVH reports growth in North America By brand, Tommy Hilfiger revenue decreased 5 percent, with international revenue down 7 percent and North America sales flat. Calvin Klein revenue decreased 2 percent, with international sales down 4 percent and North America sales up 3 percent. The company attributed strong North America performance to a shift in wholesale delivery schedules, bringing new inventory to stores in the fourth quarter instead of the third. By channel, wholesale revenue decreased five percent, and direct-to-consumer sales also fell five percent, due to a ten percent decline in digital sales. “In North America, we will continue to drive a double-digit EBIT margin, in Europe our fall 2025 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region,” Larsson said. PVH projects stable outlook and announces share repurchase program PVH Corp. anticipates revenue to remain relatively stable for 2025, projecting flat growth or a slight increase compared to 2024. This positive outlook, in a market where many brands are revising forecasts downward, was well-received by investors, as seen in the company's stock performance. PVH also announced its intent to enter accelerated share repurchase agreements to repurchase five hundred million dollars of its common stock under the existing five billion dollar stock repurchase authorisation, of which one point eight billion dollars was available for share repurchases as of February 2, 2025, the end of its most recent fiscal year. SummaryPVH Corp. exceeded revenue and earnings expectations in Q4 2024, despite an overall net loss, showing resilience in a challenging market.North American performance was strong, driven by a shift in wholesale delivery schedules, while international sales saw declines for both Tommy Hilfiger and Calvin Klein.PVH projects stable revenue for 2025 and announced a $500 million share repurchase program, signalling confidence in the company's future.

Apr 1, 2025 - 07:37

PVH Corp. beats Q4 forecasts despite net loss

Tommy Hilfiger store *Credits: PVH Corp.*

PVH Corp., parent to Tommy Hilfiger and Calvin Klein, showed resilience in its fourth quarter, beating analysts' forecasts despite a reported net loss. The company's revenue performance and forward-looking statements sparked confidence, boosting its stock price.

Fourth quarter 2024 revenues fell 3 percent to 2.49 billion dollars, compared to the prior year. However, this surpassed analysts' projections of a potential 7 percent decline.

A net loss of 176.3 million dollars was reported, contrasting with a net income of 147.1 million dollars in the prior year period.

CEO Stefan Larsson stated, "We exceeded both our revenue and earnings guidance in the fourth quarter, driven by the strength of our brands and execution of our strategic priorities."

PVH reports growth in North America

By brand, Tommy Hilfiger revenue decreased 5 percent, with international revenue down 7 percent and North America sales flat. Calvin Klein revenue decreased 2 percent, with international sales down 4 percent and North America sales up 3 percent.

The company attributed strong North America performance to a shift in wholesale delivery schedules, bringing new inventory to stores in the fourth quarter instead of the third.

By channel, wholesale revenue decreased five percent, and direct-to-consumer sales also fell five percent, due to a ten percent decline in digital sales.

“In North America, we will continue to drive a double-digit EBIT margin, in Europe our fall 2025 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region,” Larsson said.

PVH projects stable outlook and announces share repurchase program

PVH Corp. anticipates revenue to remain relatively stable for 2025, projecting flat growth or a slight increase compared to 2024.

This positive outlook, in a market where many brands are revising forecasts downward, was well-received by investors, as seen in the company's stock performance.

PVH also announced its intent to enter accelerated share repurchase agreements to repurchase five hundred million dollars of its common stock under the existing five billion dollar stock repurchase authorisation, of which one point eight billion dollars was available for share repurchases as of February 2, 2025, the end of its most recent fiscal year.