Latest news with #StefanLarsson
Yahoo
4 days ago
- 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
4 days ago
- 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
Yahoo
5 days ago
- Business
- Yahoo
PVH Q1 Earnings Call: Management Details Margin Pressure and Promotional Challenges Amid Weak Consumer Environment
Fashion conglomerate PVH (NYSE:PVH) beat Wall Street's revenue expectations in Q1 CY2025 as sales only rose 1.6% year on year to $1.98 billion. Its non-GAAP EPS of $2.30 per share was 2.2% above analysts' consensus estimates. Is now the time to buy PVH? Find out in our full research report (it's free). Revenue: $1.98 billion (1.6% year-on-year growth) Adjusted EPS: $2.30 vs analyst estimates of $2.25 (2.2% beat) Management lowered its full-year Adjusted EPS guidance to $10.88 at the midpoint, a 13.5% decrease Operating Margin: -16.7%, down from 10.5% in the same quarter last year Constant Currency Revenue rose 1.9% year on year (-8.7% in the same quarter last year) Market Capitalization: $3.88 billion PVH's first quarter results reflected the company's efforts to drive growth at Calvin Klein and Tommy Hilfiger through product innovation and targeted marketing despite an increasingly challenging retail environment. CEO Stefan Larsson highlighted the successful launch of Calvin Klein's Icon Cotton Stretch Underwear for Men, which drove a 25% increase in sales for that franchise, and noted a 14% gain in Calvin Klein's fashion denim assortment due to expanded fits and designs. Direct-to-consumer e-commerce saw growth, while store traffic remained pressured. Larsson acknowledged that weaker consumer sentiment led to higher promotional activity, particularly in North America and China, which weighed on margins. Looking forward, PVH's management signaled a cautious outlook amid ongoing macroeconomic headwinds, including new tariffs and persistent softness in consumer demand. Larsson stated, 'We are not yet in a place to fully compensate for the effects of these strong macro forces,' while CFO Zac Coughlin emphasized that the company's updated guidance accounts for a more promotional environment and the impact of tariffs, especially in the U.S. Management aims to mitigate these challenges by expanding key product launches, increasing marketing investment, and executing cost-saving initiatives. The addition of new leadership at Calvin Klein and the scaling of PVH's operational improvements are intended to position the company for margin recovery in the second half of the year and into 2026. Management attributed the quarter's revenue growth to product innovation and expanded wholesale activities, but highlighted that consumer softness and increased promotion led to margin compression and a downward revision of full-year profit guidance. Product innovation drove select growth: The launch of Calvin Klein's Icon Cotton Stretch Underwear franchise, supported by a high-profile marketing campaign, resulted in 25% higher combined sales for that category. Fashion denim also saw a 14% lift due to updated fits and designs, showing where targeted innovation can still deliver growth. Wholesale outperformed direct retail: PVH benefited from earlier wholesale shipments in The Americas, as well as the relaunch and in-housing of Calvin Klein women's sportswear and jeans. However, direct-to-consumer revenue—especially in brick-and-mortar stores—declined amid lower traffic, only partially offset by e-commerce gains. Europe stabilized, Asia lagged: Europe saw mid-single-digit revenue growth in both wholesale and direct-to-consumer, with improved conversion during key shopping periods. In contrast, Asia Pacific, particularly China, faced continued weakness in consumer sentiment, contributing to a double-digit sales decline in the region. Promotional activity pressured margins: Management cited a more promotional retail environment globally—especially in the U.S. and China—as a key factor behind the decline in gross margin. This trend is expected to persist throughout the year, as PVH absorbs both macroeconomic pressure and new tariff impacts. Operational challenges at Calvin Klein: The transition to a centralized global product creation model for Calvin Klein led to operational hurdles, constraining product development timelines and sourcing. Management addressed these by bringing in new leadership and expects sequential improvements by next spring, but acknowledged that these issues contributed to first-half margin weakness. PVH expects macro headwinds, ongoing promotional intensity, and cost-saving initiatives to determine its revenue and margin trajectory through the rest of the year. Tariff and macro pressure: Management anticipates that recently enacted U.S. tariffs will reduce earnings by about $65 million this year, with most headwinds in the second half. The company is leveraging its global sourcing network and considering selective price adjustments, but expects only partial mitigation in the near term. Cost savings and operational fixes: PVH aims to realize 200 basis points of operating margin benefit from cost-saving actions—such as technology consolidation and logistics optimization—by year-end. Management believes these efforts, combined with the resolution of Calvin Klein's product development challenges, will support margin improvement exiting the year. Marketing and product launches: The company is increasing marketing investments for both Calvin Klein and Tommy Hilfiger, focusing on high-impact campaigns and new product introductions in key categories like underwear, denim, and outerwear. Management expects these initiatives to drive consumer engagement and offset some of the pressure from promotional environments. In upcoming quarters, the StockStory team will monitor (1) the pace of inventory normalization as PVH adjusts its supply to match demand, (2) tangible improvements in Calvin Klein's product development and on-time deliveries following operational changes, and (3) the effectiveness of increased marketing spend in generating higher traffic and conversion rates. Additional focus will be on how successfully PVH manages the ongoing promotional intensity and tariff headwinds in its core markets. PVH currently trades at a forward P/E ratio of 6.1×. Should you double down or take your chips? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Fibre2Fashion
5 days ago
- 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)
Fashion Network
6 days ago
- Business
- Fashion Network
PVH sales lift on Tommy Hilfiger brand growth, cuts full-year profit forecast on tariff impact
Elsewhere, APAC sales plummeted 13%, primarily due to a 3% decline linked to the timing of the Lunar New Year shopping period, which was mostly in the fourth quarter of 2024, and a challenging consumer environment, particularly in China. Finally, licensing revenue decreased 2%, due to the transition of certain previously licensed women's product categories in house. During the quarter, to apparel company swung to a $44.8 million, compared to a net income of $151.4 million in the prior-year period. Loss per share came to $0.88, compared to an earnings per share of $2.59. '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'," said Stefan Larsson, chief executive officer, PVH. 'While we are making important progress in our PVH+ Plan execution, we are navigating an increasingly uncertain consumer and macroeconomic backdrop—and given where we are on our brand-building journey, we're not yet fully able to offset that impact. 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. This will both strengthen the back half of this year, and continue to move us toward our long-term goal of building Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world.' Looking ahead, PVH reaffirmed it sales outlook of flat to increase slightly for the full year. However, the firm cut is profit forecast with adjusted earning per share now expected to come in at $10.75 to $11, down from $12.40 to $12.75 in the firm's previous forecast earlier in the year, citing the negative impact related to the tariffs currently in place for goods coming into the U.S.
