The company had anticipated a revenue decrease of 6% to 7% for the quarter.
For the quarter ending 2 February 2025, revenue of Tommy Hilfiger brand dipped by 5% year-over-year, with the brand’s international business recording a 7% fall.
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Calvin Klein also experienced a 2% revenue drop from the previous year, with international sales falling by 4%. However, this was partially offset by a 3% rise in North America, largely due to the timing of wholesale shipments.
Revenue from Heritage Brands plummeted by 41% compared to the same period last year, which included a 28% reduction following the divestiture of its women’s intimates business.
PVH Corp chief executive officer Stefan Larsson said: “Driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well-positioned for 2025.”
Key metrics from Q4 fiscal 2024
The direct-to-consumer revenue for PVH Corp in Q4 FY24 declined by 5% from the prior year. Revenue from owned and operated stores fell by 4%, while digital commerce business revenues saw a more significant drop of 10%.
Wholesale revenues also decreased by 5%, including a 2% reduction due to the sale of the women’s intimates business under Heritage Brands.
The company’s gross profit for the quarter stood at $1.38bn, a decrease from $1.50bn in the previous fiscal quarter.
Gross margin contracted to 58.2% from 60.3%, reflecting increased promotional activities, an unfavourable shift in channel mix, and elevated freight costs.
Net income for PVH Corp in Q4 FY24 tumbled to $157.2m from $271.8m in the prior year’s quarter. Its earnings per share (EPS) followed suit, dropping to $2.83 from $4.55.
The company also saw its earnings before interest and taxes (EBIT) dropped to $210m in Q4 FY24, down from $356m in the corresponding period last year.
FY performance
PVH Corp’s revenue declined by 6% to $8.65bn in FY24 compared to $9.21m in FY23. Both Tommy Hilfiger and Calvin Klein reported revenue decreases of 5% and 1%, respectively, while Heritage Brands saw a more pronounced decrease of 57%, including a 45% drop due to the sale of its women’s intimates business.
The company reported its net income to drop 9% to $598.5m in FY24 from $663.6m in FY23, with EPS at $10.56 versus $10.76 in FY23.
Its EBIT dropped to $772m, negatively impacted by foreign currency translation, from $929m in FY23.
“In 2024, we beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin. In a challenging macro environment, we delivered another year of strong profitability in North America, drove sequential improvements in our wholesale order books in Europe while improving our quality of sales, and we achieved our third consecutive year of growth in Asia Pacific on a constant currency basis,” Stefan Larsson added.
Looking ahead to FY25:
PVH Corp projects full-year revenue for FY25 to be flat or slightly increase compared to FY24. It expects operating margin to remain stable or witness marginal growth on a non-GAAP basis relative to the non-GAAP figure of 10.0% in FY24.
The company also expects EPS to range between $12.40 and $12.75 on a non-GAAP basis against GAAP EPS of $10.56 and non-GAAP EPS of $11.74 for FY24.
Larsson continued: “Looking ahead, we are positioning the company for long-term, sustainable growth and remain relentlessly focused on fuelling our brand-building consumer flywheel to unlock our full potential around the world.”
In January this year, the Chinese government indicated that PVH Corp engaged in misconduct related to issues in Xinjiang
