Latest news with #ZacCoughlin
Yahoo
3 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 is ‘focused on what we can control' in uncertain consumer environment
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. PVH Corp. saw its revenue increase 2% to $1.98 billion in the first quarter of fiscal 2025, according to a press release Wednesday. The increase exceeded the company's previous guidance of flat to down 2% for the quarter. Tommy Hilfiger revenue increased 3% year over year, driven by growth in the Americas as well as the region including Europe, the Middle East and Africa. Calvin Klein revenue was flat for the period. Overall DTC revenue fell 3% year over year, with growth in EMEA offset by declines in both the Americas and in Asia Pacific. Wholesale revenue increased 6%. 2025 is an important year in PVH's previously announced multi-year PVH+ Plan, which looks to boost the value and desirability of the Calvin Klein and Tommy Hilfiger brands. The strategic plan is also designed to bring the company to $12.5 billion in revenue by the end of this year. Thus, growing revenue is a big commitment for the company in 2025, said CFO Zac Coughlin on an earnings call with investors Thursday. However, changing tariff policies and tempered consumer spending have made this a challenging time for the fashion industry. '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,' PVH CEO Stefan Larsson said in the press release. '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.' Next quarter, PVH expects revenue to increase in the low single-digits compared to the same period last year. PVH reaffirmed its fiscal 2025 outlook, and forecast revenue to be flat or slightly up year over year. However, it changed its earnings per share guidance for the year to a range of $10.75 to $11, down from its previous guidance of $12.40 to $12.75. On the earnings call, Larsson said that despite the negative consumer and macroeconomic environment, the company is still able to retain customers by tapping into product innovation, distinctive marketing and strong wholesale. He pointed to the recent product innovation in Calvin Klein's men's underwear, including a viral ad campaign with musician Bad Bunny, as well as Tommy Hilfiger's partnership with Cadillac for a Formula 1-inspired collection. PVH said it identified $65 million in unmitigated tariff effects for the rest of the year, though it believes it has an advantage with a globally diversified revenue base and supply base. The company has a larger international share of its business than some of its competitors, with 30% of its business in the U.S. and 70% international, per Larsson. PVH is working with its supply chain partners to share the impact of the tariffs if possible, but noted that it's ready to take 'calibrated and targeted pricing action' in business lines where it has pricing power, Coughlin said on the call. 'We remain laser focused on perceived value for our consumers, so we will evaluate to take discount reductions to mitigate potential tariff impact,' he said. Recommended Reading Calvin Klein global brand president exits 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 Stock Sinks as Calvin Klein Owner Says Tariffs Will Hurt Profit
PVH warned that new U.S. tariffs will hurt 2025 profit. The owner of the Calvin Klein and Tommy Hilfiger brands lowered its full-year profit outlook. PVH reported better-than-anticipated first-quarter earnings and revenue on higher sales in the Americas and Europe, Middle East, and of PVH (PVH) sank 17% Thursday, a day after the apparel maker warned full-year profit will be dragged down by new U.S. tariffs. The company behind the Calvin Klein and Tommy Hilfiger brands reported it now sees 2025 adjusted earnings per share (EPS) of $10.75 to $11.00, down from its earlier outlook of $12.40 to $12.75. It explained that the guidance "reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $65 million unmitigated impact to full year 2025 EBIT, or approximately $1.05 per share." It added the effects would be partially offset by "planned mitigation actions" in the second half of the year. CFO Zac Coughlin said PVH was "decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business." The news offset better-than-expected first-quarter results, boosted by demand in the Americas and Europe, Middle East, and Africa (EMEA). The company posted adjusted EPS of $2.30, with revenue rising 2% year-over-year to $1.98 billion. Both exceeded Visible Alpha forecasts. Sales in the Americas were up 7% to $608.4 million, and 5% to $927.7 million in EMEA. However, sales tumbled 13% to $351.7 million in the Asia-Pacific region, and licensing revenue dropped 1.5% to $95.8 million. Tommy Hilfiger sales grew 3.4% to $1.05 billion, while Calvin Klein sales were basically flat at $886.1 million. Sales of its Heritage brand fell 5% to $49.4 million. With today's sharp declines, PVH shares have lost more than a third of their value this year. Read the original article on Investopedia Sign in to access your portfolio
Fibre2Fashion
4 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)
Yahoo
23-04-2025
- Business
- Yahoo
Calvin Klein owner plans warehouse utilization boost
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. PVH Corp. will increase its U.S. warehouse capacity utilization to about 85% to 90% by consolidating its facility footprint into two warehouses and insourcing its e-commerce distribution operations, CFO Zac Coughlin said on an April 1 earnings call. The Calvin Klein and Tommy Hilfiger owner's current capacity utilization is slightly above 50%, Coughlin said. The consolidation and insourcing push will help streamline the company's logistics operations and result in "significantly decreased North America distribution expenses," he added. PVH is closing its Jonesville, North Carolina, facility as part of the plan and shifting operations to its two warehouse and distribution centers in Georgia. "This will allow us to take full advantage of the technical capabilities in our Georgia network and continue to respond to our consumers with speed," the company said in an emailed statement to Supply Chain Dive. Layoffs for 317 employees at the Jonesville facility, including material handlers and equipment operators, are slated to occur between Oct. 3 and Dec. 31 as a result of the shift, according to a Worker Adjustment and Retraining Notification (WARN) Act notice filed in January. The changes are part of PVH's broader goal to simplify its operating model and increase company-wide efficiencies. Other aspects of that plan include consolidating its technology stack into a single platform and selling a warehouse and distribution center, a transaction that took place in fiscal year 2024. "We've laid the groundwork for these initiatives, and we expect to drive significant cost savings in 2025 on top of the reductions we already realized in 2024 with savings showing up more powerfully as we progress through the year," Coughlin said. PVH's move to insource e-commerce distribution activity comes as supply chains continue to weigh whether to place fulfillment operations in-house or outsource them to third-party logistics providers. Insourcing can give companies more control over the shipping process. Outsourcing, on the other hand, can offer flexibility and upfront cost savings. Recommended Reading Calvin Klein owner's cotton sourcing scrutinized by China Sign in to access your portfolio
