Latest news with #IconCottonStretch
Yahoo
01-07-2025
- Business
- Yahoo
PVH CEO Stefan Larsson Buys $1M in Stock, Signaling Confidence in Fashion Company's Strategy
Stefan Larsson — who's been reengineering PVH Corp. to build up Tommy Hilfiger and Calvin Klein — is feeling bullish. And it seems to be a little contagious. More from WWD 'F1' Star Damson Idris Is Ready for Takeoff Lauren Sánchez's and Jeff Bezos' Wedding Is Prime for Fashion Fashion 4 Development Touts Diplomacy and Culture at The Pierre Hotel The chief executive officer bought 15,645 shares of PVH at a price of $63.92 last week, according to a filing with the Securities and Exchange Commission on Monday. That's a $1 million investment by Larsson — and a signal to Wall Street, which likes it when CEOs eat their own cooking. Tom Nikic, an analyst at Needham & Co. who recently started following PVH, called the stock purchase an 'encouraging show of confidence by management, demonstrating their confidence in the current state of the business, and most likely representing confidence in guidance for Q2 and the fiscal year.' Nikic said the stock purchase also highlights 'how inexpensively the shares are currently being valued.' The analyst pointed out that PVH has an enterprise value of about five times its earnings before interest, taxes, depreciation and amortization estimate for this year — down from the seven times it's typically traded at and below the average of eight times seen by the company's peers. 'While the macro environment is undoubtedly challenging, we think the shares have been overly punished, particularly with accretion from cost efficiencies and the G-III licenses hitting the [profit and loss statement over] the next three years,' Nikic said. 'Thus, we view PVH as a compelling story, particularly for value-focused investors.' There are a lot of moving parts at PVH, which is taking back its North American wholesale licenses from G-III Apparel Group, working out the kinks in Calvin Klein's new global product kitchen, sharpening its inventory approach, and working to sync up product innovation with big-time marketing. When it hits, it hits. Last month, Larsson said Calvin Klein's new Icon Cotton Stretch underwear, backed up by a high-profile campaign blitz featuring Bad Bunny, drove a 25 percent increase in revenues. Larsson is still in the process of building a machine that can drive that kind of growth in a systematic, repeatable way. 'This purchase is a reflection of Mr. Larsson's belief in PVH and in the company's ability to continue to deliver long-term value as we make important progress on our multiyear growth strategy, the PVH+ plan,' a spokesperson said. Investors were feeling the vibes. Shares of PVH rose 4.4 percent on Monday and picked up another 5.2 percent to $72.19 in midday trading on Tuesday. That left the company with a market capitalization of $3.5 million — down from about $5.9 billion a year ago, but moving in the right direction. All together, Larsson beneficially owns more than 269,000 shares of PVH, valued at more than $19 million. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
PVH + G-III: Fashion Frenemies Disengage, Slowly
PVH Corp. and G-III Apparel Group might be corporate fashion's perfect frenemies. First, they had a nearly 20-year licensing relationship, forged by G-III chief executive officer Morris Goldfarb and former PVH chief Manny Chirico. G-III used its Seventh Avenue savvy to build up PVH's Calvin Klein and then Tommy Hilfiger brands at U.S. department stores. More from WWD 'Walking Alongside' American Designer Claire McCardell in New Book Louis Vuitton Names Jeremy Allen White as Brand Ambassador From the Archive: Calvin Klein's $1M L.A. Runway Show Unites Stars for AIDS Awareness Both sides made plenty of money. Then came a changing of the guard at PVH with Stefan Larsson stepping in as CEO. He broke up with G-III in 2022 as part of a broader plan to take more complete control of the brands and reposition them. It was a blow that effectively snatched away 50.7 percent of G-III's sales. But it was also drawn out as the licenses — covering men's and women's outerwear, luggage, women's apparel, dresses, suits and swimwear — don't all expire until 2027. Like a couple that split, but still live together, they've been civil, not warm as they head in their own directions. Now G-III and PVH are increasingly meeting in the market as competitors. The shift is still relatively small. The businesses with G-III accounted for about 33 percent of PVH's global licensing revenues in 2021 and will still be 20 percent of expected licensing revenues for 2025. As the companies separate, they are building up their respective businesses. G-III is pushing ahead with the other brands it owns, like Karl Lagerfeld, and new licenses, like Converse and Champion and has admirably set itself up for the next turn of the wheel. The company relaunched Donna Karan to help plug the void, while PVH reintroduced its own version of Calvin Klein sportswear in 150-plus Macy's doors. There was a lot of tut-tutting from some corners as G-III used to sell the brand in 450 Macy's doors — but then again, even Macy's doesn't want to be in 450 of its doors and is whittling the chain down to its best locations. PVH is also working on something bigger. The rollout of new Calvin Klein sportswear collided with some difficulties in PVH's efforts to set up a global product kitchen for the brand. But Larsson has stressed that when the pieces of his strategic plan come together, they work beautifully. Last week, he pointed to Calvin Klein's new Icon Cotton Stretch underwear franchise, which saw a 25 percent boost in revenues as product innovation, marketing and the go-to market strategy all lined up. 'When we lean in to where we have the iconic strength and the love from the consumer and add newness strategically in product, we combine it with cut-through marketing campaigns and strengthen the marketplace execution and bring that impact into both wholesale partners and stores, then we really win,' Larsson told WWD. 'It's a multiyear journey. You see it season by season.' Along the way, Larsson has switched up the company's executive leadership — most recently installing a new head at Calvin Klein — cut costs and jettisoned noncore businesses. Analysts have been believers in the plan, but are getting itchy for PVH to show more results. 'Time is ticking on the turnaround catalyst,' said John Kernan, an analyst at TD Securities, in a note to clients last week. Likewise, while G-III has survived its existential moment and found its footing after PVH withdrew, it still has to demonstrate to investors that it can make its businesses work. Interestingly, since the day G-III and PVH started to part ways in November 2022, shares of both companies are down about 2 percent (while the S&P 500 marched steadily higher with a 48 percent gain). Despite the breakup, they are both coming from the same place and heading in the same direction. PVH's Larsson wanted to bring back closer control of his brands to position for methodical, repeatable break away performance. G-III's Goldfarb has also been leaning into owned brands, liking the control and security it gives him, while also holding onto the licensing part of the business. Larsson is betting on a new approach for PVH, Goldfarb is doubling down on what has worked for G-III in the past. Goldfarb, who's been a CEO in fashion for more than 50 years, is picking up all the help he can get along the way, while taking some mild digs at all comers. 'The Tommy and Calvin brands are good brands, but there's something to be said for the value of the people operating the brands,' Goldfarb told WWD recently. 'I've seen an amazing amount of brands that have faded away. The Liz Claibornes of the world, the Jones New Yorks of the world. As new management comes in and takes an approach of cleaning house of the amazing talent that they employed — the legacy talent and the legacy culture that was inherited, they don't see very much value in it. I have always respected the values of the brands that really ruled in the sector in my career. 'As Liz Claiborne disbanded…I took the best of their talent, hired them, learned from them, and placed them globally to add value to our company. I found them to be absolutely amazing,' he said. 'Same thing with some of the PVH talent.' The Bottom Line is a business analysis column written by Evan Clark, deputy managing editor, who has covered the fashion industry since 2000. It appears periodically. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
PVH beats Q1 revenue expectations but cuts FY25 outlook
US-based fashion and lifestyle retailer PVH Corp has reported that its revenue increased 2% to $1.984bn in the first quarter (Q1) of 2025 (FY25). The company's Europe, the Middle East and Africa (EMEA) segment revenue saw a 5% increase, while Americas revenue grew by 7%. However, Asia Pacific (APAC) revenue declined 13%, affected by the timing of the 2025 Lunar New Year and a challenging consumer environment, especially in China. Licensing revenue decreased 2% due to the in-house transition of certain women's product categories. The company's Tommy Hilfiger brand saw a revenue increase of 3%, while Calvin Klein's revenue remained flat. PVH CEO Stefan Larsson stated: 'In Q1, we continued to tap into the global consumer love for Calvin Klein and Tommy Hilfiger, delivering revenue growth versus last year and ahead of guidance. 'Calvin Klein saw one of its most impactful product launches in years with the Icon Cotton Stretch franchise, amplified by the viral Bad Bunny campaign. Tommy Hilfiger tapped into its lifestyle DNA with rich product storytelling around seasonal newness of Tommy classics to drive growth and built momentum for the brand's collaboration with the biggest movie launch of the summer: F The Movie.' Direct-to-consumer revenue declined 3%, with owned and operated store revenue down 5%. In contrast, owned and operated digital commerce revenue grew 3%, driven by growth in Americas. Wholesale revenue increased by 6%, driven by growth in the Americas and EMEA. PVH's gross margin decreased to 58.6% from 61.4% in the previous year, reflecting an unfavourable shift in channel mix, increased promotional activity, the transition of licensed women's product categories to an in-house wholesale business and higher freight costs. The company reported a generally accepted accounting principles (GAAP) loss before interest and taxes of $332m, including a $4m negative impact from foreign currency translation, compared to a $205m earnings in the previous year. PVH's 2025 outlook includes an estimated net negative impact from US tariffs, with a projected full-year earnings before interest and taxation impact of $65m. The company reaffirms its revenue outlook to be flat or slightly increased, with a non-GAAP operating margin projected at around 8.5%. Full-year earnings per share (EPS) is expected to range between $10.75 and $11.00 on a non-GAAP basis. For the second quarter of 2025, revenue is projected to increase in the low single digits, with EPS in the range $1.85 to $2 on a non-GAAP basis. PVH notes significant uncertainties in global trade policies and macroeconomic conditions, which could materially change the 2025 outlook. PVH chief financial officer Zac Coughlin stated: We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business. 'Our focus remains on taking proactive measures, including investing in cut-through marketing campaigns and delivering increasing cost efficiencies through execution of our Growth Driver 5 multi-year cost savings initiative, that will improve our trajectory in the second half.' In June 2024, Calvin Klein opened a flagship store in Paris, at 44 Avenue des Champs-Élysées. "PVH beats Q1 revenue expectations but cuts FY25 outlook" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
PVH Corp (PVH) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Revenue Growth: Up 2% on both a reported and constant currency basis. Operating Margin: 8.1% within guidance range. Earnings Per Share (EPS): $2.30, slightly ahead of guidance. Gross Margin: 58.6%, a decrease of 280 basis points compared to last year. Inventory Increase: Up 19% compared to Q1 last year. Direct-to-Consumer Revenue: Down 3% both reported and in constant currency. Wholesale Revenue: Up 7% on a constant currency basis, 6% on a reported basis. EMEA Revenue: Up 4% in constant currency. Americas Revenue: Up 7%, driven by high-teens growth in wholesale. Asia Pacific Revenue: Down 11% on a constant currency basis. Licensing Revenue: Down 2% versus last year. SG&A as a Percent of Revenue: 50.5%, a 90 basis point improvement versus last year. Shareholder Returns: Over $550 million returned through share repurchases. Warning! GuruFocus has detected 7 Warning Signs with CIEN. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PVH Corp (NYSE:PVH) reported a 2% revenue growth, exceeding their guidance, driven by disciplined execution of the PVH+ Plan. The company delivered stronger than expected non-GAAP EPS, also above their guidance. Calvin Klein's innovative product franchise, Icon Cotton Stretch underwear, drove a 25% increase in sales globally. Tommy Hilfiger's strategic product innovations and seasonal collections have led to stronger performance, particularly in Europe. PVH Corp (NYSE:PVH) returned over $550 million to shareholders through share repurchases during the quarter. The company is facing a challenging macroeconomic environment, with decreased consumer sentiment and traffic trends, particularly in North America and China. PVH Corp (NYSE:PVH) experienced operational challenges with Calvin Klein's global product creation, impacting margins. The company is dealing with a more promotional environment, leading to increased discounting and impacting gross margins. Tariffs are expected to have a $65 million unmitigated impact on EBIT for the full year. Inventory levels increased by 19% due to lower than expected demand for basics and essentials. Q: Stefan, you mentioned decreased traffic and increased promotional levels. What gives you confidence that Calvin Klein and Tommy Hilfiger still have good momentum with consumers? A: Stefan Larsson, CEO: Despite the challenging macro environment, where we lean into consumer love for Calvin Klein and Tommy Hilfiger, we see strong results. For example, our new product innovation in Calvin Klein men's underwear drove 25% growth in a major franchise. Similarly, fashion denim grew by 14%. We plan to expand these successful strategies across more of our business. Q: Can you provide an update on the cost-out efforts and whether they are affecting operational stability, particularly for Calvin Klein? A: Stefan Larsson, CEO: The operational challenges at Calvin Klein were due to the integration of global product capabilities, which is crucial for future growth. We are seeing improvements, with significant progress expected by Spring 2026. Zachary Coughlin, CFO, added that cost-saving measures are on track, with 200 basis points of SG&A leverage expected by Q4 2025. Q: How are you addressing the impact of tariffs, and what are your strategies for mitigating these effects? A: Zachary Coughlin, CFO: We have identified $65 million in unmitigated tariff effects. Our mitigation strategies include optimizing sourcing and production costs, strategic discount reductions, and targeted pricing actions where we have pricing power. Our globally diversified revenue base and strong supply chain relationships are key advantages. Q: With the expected promotional environment, how do you plan to make the brand more resilient from a pricing perspective? A: Stefan Larsson, CEO: We are focusing on scaling the impact of PVH+ execution by enhancing product innovation in key categories and increasing marketing investments to drive traffic. For example, Tommy Hilfiger's partnership with Formula One is a strategic move to connect the brand with a growing sport and enhance its lifestyle appeal. Q: Can you elaborate on the gross margin outlook for the second quarter and the back half of the year? A: Zachary Coughlin, CFO: For the full year, gross margins are expected to decrease by approximately 250 basis points, with 50 basis points due to tariffs and 100 basis points from increased promotional activity. We anticipate sequential improvement in Calvin Klein's operational issues and expect to mitigate the tariff impact over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Fibre2Fashion
05-06-2025
- Business
- Fibre2Fashion
US' PVH Q1 revenue up 2%; EPS outlook trimmed on tariffs
PVH Corp has reported a revenue of $1.984 billion for the first quarter (Q1) of fiscal 2025 (FY25) ended May 4, up 2 per cent year-on-year (YoY) and ahead of guidance. Non-GAAP earnings per share (EPS) stood at $2.30, surpassing forecasts of $2.10 to $2.25, while GAAP EPS was $0.88, impacted primarily by a $480 million noncash goodwill and intangible asset impairment. PVH Corp's Q1 FY25 revenue has risen by 2 per cent YoY to $1.984 billion, beating guidance. Non-GAAP EPS was $2.30, while GAAP EPS stood at $0.88 due to a $480 million impairment. EMEA and Americas grew; APAC declined. Tommy Hilfiger rose 3 per cent; Calvin Klein was flat. FY25 EPS guidance was cut to $10.75â€'$11.00 due to tariffs; Q2 EPS seen at $1.85â€'$2.00. 'We drove solid first quarter results, which included low-single digit revenue growth and non-GAAP earnings per share above our guidance,' said Zac Coughlin, chief financial officer. Regionally, Europe, the Middle East and Africa (EMEA) revenue rose 5 per cent (4 per cent constant currency), driven by growth in both wholesale and direct-to-consumer businesses. Americas revenue grew 7 per cent (8 per cent constant currency), led by wholesale gains and the in-house transition of previously licensed women's products, despite a mid single-digit drop in direct-to-consumer sales. Asia-Pacific (APAC) revenue declined 13 per cent (11 per cent constant currency), impacted by a shift in the Lunar New Year sales period and a challenging consumer environment in China, the company said in a media release. Tommy Hilfiger recorded a 3 per cent revenue increase, whereas Calvin Klein's revenue was unchanged from the prior year period. 'In Q1, we continued to tap into the global consumer love for Calvin Klein and Tommy Hilfiger, delivering revenue growth versus last year and ahead of guidance. Calvin Klein saw one of its most impactful product launches in years with the Icon Cotton Stretch franchise, amplified by the viral Bad Bunny campaign. Tommy Hilfiger tapped into its lifestyle DNA with rich product storytelling around seasonal newness of Tommy classics to drive growth and built momentum for the brand's collaboration with the biggest movie launch of the summer: F1 The Movie,' Stefan Larsson, chief executive officer, commented. Gross margin fell to 58.6 per cent from 61.4 per cent, reflecting an unfavourable channel mix, increased promotional activity, and product delays. Inventory rose 19 per cent due to early seasonal buys and core product investments. EBIT on a non-GAAP basis was $160 million versus $195 million a year earlier. PVH reaffirmed its full-year FY25 revenue guidance but lowered its non-GAAP EPS forecast to $10.75–$11.00 from a prior range of $12.40–$12.75, citing a $1.05 per share unmitigated impact from tariffs on US imports. Operating margin is now projected at approximately 8.5 per cent (non-GAAP), down from 10 per cent in FY24. Q2 revenue is expected to rise modestly, with non-GAAP EPS guidance set at $1.85–$2, down from $3.01 in the prior-year quarter. 'Looking ahead, we're focused on what we can control, stepping up our actions to scale the impact of our stronger product, next-level cut-through campaigns, and sharper marketplace execution across both brands,' Larsson continued. 'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business. Our focus remains on taking proactive measures, including investing in cut-through marketing campaigns and delivering increasing cost efficiencies through execution of our Growth Driver 5 multi-year cost savings initiative, that will improve our trajectory in the second half,' Coughlin said. Fibre2Fashion News Desk (HU)
