Mixed results for Calvin Klein, Tommy Hilfiger parent PVH

PVH Corp has posted a decline in revenue for the first quarter, but there were sales improvements for both Calvin Klein and Tommy Hilfiger in North America.

The company’s revenue fell 10 per cent year on year to $1.952 billion, which beat expectations of a 11 per cent decline. The decrease included a negative three percentage points from the sale of the Heritage Brands women’s intimates business.

Direct-to-consumer revenue edged up 1 per cent, with growth in North America and Asia Pacific more than offset by a planned reduction in Europe. Wholesale revenue plunged 17 per cent.

At Tommy Hilfiger, revenue decreased 10 per cent, including a 2 per cent uplift in North American revenue and a 14 per cent decline in international revenue.

Calvin Klein’s North American revenue increased by 4 per cent but international revenue fell 2 per cent, resulting in a flat figure overall.

“We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe,” said Stefan Larsson, CEO of PVH.

The company expects a 6-7 per cent decline in revenue for both the second quarter and the full year.

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