Revenue during the second quarter at PVH, which was US $ 2.074 billion, fell 6 per cent or 5 per cent when adjusted for constant currency. This decline was mostly due to a 3 per cent decline in revenue from the sale of Heritage Brands’ women’s intimates division. The company’s non-GAAP EBIT was US $ 189 million, while its GAAP EBIT grew to US $ 174 million.
Commenting on the second quarter results, Stefan Larsson, PVH CEO said in a statement, “We delivered on our top and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. Looking ahead, as we navigate an increasingly challenging global macroeconomic backdrop, we remain relentlessly focused on delivering brand-accretive, long-term growth.”
Direct-to-consumer revenue for the business fell by 5 per cent or 3 per cent when adjusted for currency fluctuations. In constant currency terms, revenue at the company’s owned and operated outlets fell by 4 per cent or 3 per cent. In terms of constant currency, the company’s owned and operated digital commerce segment had a 6 per cent or 5 per cent fall in revenue.
The sale of Heritage Brands’ women’s intimates division resulted in a 7 per cent decline in wholesale revenue for the quarter, which fell by 9 per cent or 8 per cent on a constant currency basis.
According to the company, revenue for Tommy Hilfiger fell by 4 per cent or 3 per cent when adjusted for constant currency, while sales from overseas fell by 6 per cent or 5 per cent when adjusted for constant currency and climbed by 1 per cent in North America.
While revenue from overseas fell by 2 per cent and revenue from North America climbed by 1 per cent, Calvin Klein’s revenue fell by 1 per cent and was unchanged when adjusted for constant currency. The sale of Heritage Brands’ women’s intimates division resulted in a 56 per cent decline in revenue, accounting for half of the company’s decline.
