Tommy Hilfiger’s international revenue in FY22 saw a decline of 4 per cent, but the North America region’s revenue increase by 9 per cent. On the other hand, Calvin Klein’s international revenue increased by 1 per cent, while North America revenue increased by 8 per cent, PVH Corp said in a press release.
In FY22, the company’s earnings before interest and taxes (EBIT) on a GAAP basis was $471 million, which included a negative impact of $94 million due to foreign currency translation. However, the EBIT on a non-GAAP basis was $857 million, compared to $983 million in FY21.
PVH Corp saw a 1 per cent decrease in revenue to $9.024 billion in FY22, with Tommy Hilfiger down by 1 per cent and Calvin Klein up by 3 per cent. Direct-to-consumer revenue in Q4 FY22 increased by 4 per cent, but total digital revenue decreased by 8 per cent. FY23 guidance projects a 3-4 per cent revenue increase and EPS of approximately $10.
The company’s EPS on a GAAP basis in FY22 was $3.03, down from $13.25 in 2021. However, on a non-GAAP basis, EPS was $8.97, down from $10.15 in FY21.
For the fourth quarter (Q4) of FY22, the revenue increased by 2 per cent to $2.489 billion compared to the previous year period, with a 1 per cent reduction resulting from the impact of the war in Ukraine. Tommy Hilfiger revenue increased by 3 per cent, while Calvin Klein revenue increased by 3 per cent.
The company’s EBIT on a GAAP basis for Q4 FY22 was $297 million, compared to $223 million in Q4 FY21. Meanwhile, the EBIT on a non-GAAP basis was $215 million, compared to $175 million in the prior year period. Furthermore, the gross margin was 55.9 per cent in Q4 FY21 compared to 58.3 per cent in the prior year period.
PVH’s direct-to-consumer revenue in Q4 FY22 increased 4 per cent compared to the prior year period, while the wholesale revenue was flat compared to the prior year period. Furthermore, total digital revenue decreased 8 per cent compared to exceptionally strong revenue in the prior year period.
The company’s FY23 guidance projects a revenue increase of 3 per cent to 4 per cent compared to FY22. On a constant currency basis, the increase is projected to be 2-3 per cent. The operating margin is expected to be around 10 per cent. The projected EPS for 2023 is approximately $10, which is an increase from $3.03 on a GAAP basis and $8.97 on a non-GAAP basis in FY22, the release added.
Stefan Larsson, chief executive officer, said “We delivered strong fourth quarter performance with stronger than expected high-single digit constant currency revenue growth and earnings above guidance. Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally led strategy enabled us to compete to win despite the challenging macro situation.”
“Looking ahead, we are entering 2023 with significant momentum, and we will continue to execute the PVH+ Plan with discipline towards our long-term vision to build Tommy Hilfiger and Calvin Klein into the most desirable lifestyle brands in the world and be one of the highest performing brand groups in our sector.”
Fibre2Fashion News Desk (DP)