Financial Data and Key Metrics Changes - For Q2 2024, revenue decreased by 6% year-over-year, including a 1% negative impact from currency exchange and a 3% decline due to the sale of the Heritage intimates business [13][14] - Operating margin improved to 9.1%, up 80 basis points from the previous year, driven by a 250 basis point increase in gross margin [13][17] - Earnings per share (EPS) was $3.01, benefiting from a favorable tax settlement, with a projected increase to $11.55 to $11.80 for the full year [13][19] Business Line Data and Key Metrics Changes - Calvin Klein revenues were flat year-over-year on a constant currency basis, while Tommy Hilfiger revenues declined by 3% on a constant currency basis [16] - Direct-to-consumer (D2C) revenue was down 3% on a constant currency basis, with a decline in retail stores and e-commerce [15][16] - Wholesale revenue decreased by 8%, primarily due to the sale of the Heritage intimates business and a strategic reduction in Europe [15][16] Market Data and Key Metrics Changes - North America showed a 1% revenue increase for Calvin Klein and Tommy Hilfiger combined, with an EBIT margin of 11.7%, marking a 400 basis point improvement [9][14] - In Europe, revenue was down 2% in euros, with a 3% impact from quality of sales initiatives, but gross margins improved significantly [10][14] - Asia Pacific revenue declined by 4% on a constant currency basis, with a notable decrease in China and Australia, while Japan and Korea continued to grow [11][14] Company Strategy and Development Direction - The company aims to build Calvin Klein and Tommy Hilfiger into leading lifestyle brands through disciplined execution of the PVH+ Plan, focusing on brand desirability and sustainable growth [4][12] - The strategy includes improving product offerings, enhancing consumer engagement, and optimizing supply chain operations to drive efficiencies [5][12] - The company is also focused on transitioning from low-quality clearance sales to full-price selling, emphasizing newness and innovation in product assortments [4][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging global macroeconomic conditions but expressed confidence in the company's ability to navigate these challenges through disciplined execution [12][19] - The outlook for Q3 projects a revenue decline of 6% to 7%, with expectations for DTC revenue to remain nearly flat [18][19] - For the full year, the company reaffirms its revenue guidance, projecting a decrease of 6% to 7%, while raising EPS guidance due to favorable tax settlements [19][20] Other Important Information - The company is in the process of appointing a permanent CEO for PVH Europe, which is expected to enhance leadership and execution in the region [10] - The transition of the G-III licensing agreement is ongoing, with plans to recapture business over a multi-year period [35] Q&A Session Summary Question: Current health of brands and demand trends - Management reported high consumer engagement for both Calvin Klein and Tommy Hilfiger, with strong responses to recent fall campaigns featuring notable talent [22][24] Question: Cost efficiencies and operating margin targets - Management highlighted ongoing cost management efforts and simplification initiatives aimed at achieving mid-teens operating margin targets over the next few years [25] Question: North America business performance - Management noted that while July saw a dip due to clearance trends, August showed improvement with new season products resonating well with consumers [27][28] Question: Quality of sales initiatives in Europe - Management expressed confidence in the execution of quality of sales initiatives, which are expected to drive better margins and sales performance [30] Question: Long-term wholesale and DTC strategy - Management emphasized the importance of an omnichannel approach, focusing on satisfying consumer preferences across both wholesale and DTC channels [40][41]

Core Viewpoint - PVH Corp reported disappointing second-quarter earnings, leading to a significant decline in its stock price, despite some analysts maintaining positive ratings and price targets. Financial Performance - PVH reported adjusted earnings of $3.01 per share, surpassing the consensus estimate of $2.29 per share, primarily due to a $0.55 per share benefit from an unplanned favorable tax settlement [2] - Revenues decreased by 6% year-on-year, but this was better than the market expectations of a 6.3% contraction [2] Guidance and Outlook - The company raised its full-year earnings guidance, reflecting the tax benefit, but still anticipates a revenue decline of 6% to 7% [3] - Management indicated that the softer trends observed at the end of the second quarter, particularly in the U.S. and China, are expected to persist in the latter half of the year [5] - The guidance for adjusted earnings suggests an operating margin contraction of approximately 150 basis points year-on-year at the midpoint [5] Analyst Ratings - Goldman Sachs analyst Brooke Roach maintained a Buy rating with a price target of $144 [1] - JPMorgan analyst Matthew Boss reiterated an Overweight rating with a price target of $154, noting that the full-year guidance reflects the flow-through of the second quarter's tax benefit [1][3] Stock Performance - PVH shares declined by 6.24% to $97.94 at the time of publication [6]

Group 1 - PVH Corp reported strong second-quarter earnings of $3.01 per share, exceeding analyst estimates of $2.28, with revenue of $2.07 billion slightly beating expectations, but disappointing guidance for the third quarter and full year due to declining international sales [1] - Analysts have lowered their price targets for PVH, with Wells Fargo reducing it to $130 and Evercore ISI to $125, both down from $145, while the 12-month consensus price target remains at $133.64, indicating a premium over current levels [2] - Following the earnings report, PVH stock experienced a decline of 6.9% to $97.29, marking its largest daily percentage drop since April, and is down 20.6% year to date [3] Group 2 - The options market for PVH has seen double the average daily options volume, with the September 100 call being the most popular contract, followed by the 100 put, both of which are top open interest positions [3]

Key Takeaways Shares of PVH sank in premarket trading Wednesday, a day after the parent of Calvin Klein and Tommy Hilfiger reported a 6% year-over-year second-quarter revenue decline amid a "challenging consumer environment." PVH's sales were in line with estimates and it posted better-than-expected profit. Struggling international sales in China and Australia led the company to affirm its full-year projections of a revenue drop between 6% and 7%. Shares of PVH (PVH) sank in premarket trading Wednesday, a d ...

PVH (PVH) reported $2.07 billion in revenue for the quarter ended July 2024, representing a year-over-year decline of 6%. EPS of $3.01 for the same period compares to $1.98 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.07 billion, representing a surprise of +0.29%. The company delivered an EPS surprise of +32.60%, with the consensus EPS estimate being $2.27. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

PVH (PVH) came out with quarterly earnings of $3.01 per share, beating the Zacks Consensus Estimate of $2.27 per share. This compares to earnings of $1.98 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 32.60%. A quarter ago, it was expected that this owner of the Calvin Klein and Tommy Hilfiger brands would post earnings of $2.14 per share when it actually produced earnings of $2.45, delivering a surprise of 14.49%. Over the ...

Revenue Performance - Second quarter revenue decreased 6% to $2.074 billion compared to $2.207 billion in the prior year period, in line with guidance[1] - Full year revenue outlook reaffirms a projected decrease of 6% to 7%, including a 2% reduction from the sale of the Heritage Brands women's intimates business[13] - Third quarter revenue is projected to decrease 6% to 7% compared to the third quarter of 2023, with GAAP EPS expected to be approximately $2.30[16] - Net sales for the quarter ended August 4, 2024, were $1,965.1 million, a decrease of 6.7% compared to $2,105.2 million for the same quarter last year[27] - Total revenue for the six months ended August 4, 2024, was $4,026.2 million, down from $4,364.9 million in the prior year, reflecting a decline of 7.7%[27] - Total revenue for the quarter ended August 4, 2024, was $2,074.3 million, a decrease of 5.9% compared to $2,207.0 million for the quarter ended July 30, 2023[41] - Total revenue for Tommy Hilfiger International was $770.0 million, reflecting a 6.0% decrease compared to $818.8 million for the same period last year[49] - Total revenue for Calvin Klein International was $611.9 million, down 2.2% from $625.4 million year-over-year[49] Earnings and Profitability - GAAP EPS for the second quarter was $2.80, exceeding guidance of approximately $2.25, while non-GAAP EPS was $3.01, also above guidance[1] - Net income for the quarter was $158.0 million, significantly higher than $94.2 million in the same quarter last year, representing a year-over-year increase of 67.8%[27] - Diluted net income per share for the quarter was $2.80, compared to $1.50 for the same quarter last year, marking an increase of 86.7%[27] - Non-GAAP net income for the quarter was $170.2 million, compared to $124.4 million in the same quarter last year, marking a 36.8% increase[32] - Earnings before interest and taxes for the quarter increased to $173.9 million, up from $143.3 million in the same quarter last year, reflecting a growth of 21.0%[27] - The company reported a pre-tax income of $154.8 million for the quarter, compared to $119.7 million in the same quarter last year, an increase of 29.3%[27] - Total earnings before interest and taxes for the company reached $379.0 million, with a decrease of $5.3 million due to adjustments[46] Cost Management and Expenses - Selling, general and administrative expenses for the quarter were $1,083.3 million, down from $1,138.5 million in the prior year, a decrease of 4.8%[27] - The company is focusing on a multi-year initiative to simplify its operating model, which includes a cost reduction strategy aimed at reducing headcount costs by approximately 10% by the end of 2023[25] - The company plans to bring in-house most of the product categories that are or had been licensed to G-III Apparel Group, Ltd., which is expected to enhance operational efficiency[25] - SG&A expenses for the quarter were $1,083.3 million, down from $1,138.5 million in the previous year, a decrease of 4.8%[33] Debt and Cash Flow - The company has significant levels of outstanding debt, which may impact its ability to operate as intended, highlighting the importance of managing cash flows effectively[25] - Interest expense is projected to decrease to approximately $70 million compared to $88 million in 2023, primarily due to prior debt repayment[15] - Cash and cash equivalents increased to $610.0 million from $372.8 million year-over-year, showing a 63.7% rise[39] - Total liabilities decreased to $11,237.7 million from $11,542.4 million, reflecting a reduction of 2.6%[39] Future Outlook - The company expects a GAAP net income per common share of $11.20 to $11.45 for the full year 2024, with non-GAAP earnings guidance of $11.55 to $11.80[54] - The estimated revenue decrease for 2024 is projected to be between 6% to 7% on a GAAP basis, with a similar decrease expected on a constant currency basis[56] - The operating margin on a non-GAAP basis is estimated to be approximately 10.1% for 2024[55] - The company emphasizes the importance of constant currency revenue information to assess business performance excluding foreign exchange impacts[48] Segment Performance - Tommy Hilfiger North America net sales were $296.2 million, down from $297.6 million in the previous quarter, representing a decline of 0.5%[41] - Calvin Klein North America net sales increased slightly to $269.7 million from $269.9 million, showing a marginal decrease of 0.1%[41] - Tommy Hilfiger International net sales decreased to $750.8 million from $800.2 million, a decline of 6.2%[41] - Calvin Klein International net sales decreased to $597.9 million from $610.3 million, a decline of 2.0%[45] - Total Calvin Klein revenue for the quarter was $1,817.1 million, down from $1,827.9 million, a decrease of 0.7%[45] - Heritage Brands Wholesale net sales significantly dropped to $50.5 million from $127.2 million, a decline of 60.3%[45] - Royalty revenue for the total company increased to $87.7 million from $80.1 million, an increase of 9.9%[45] - Advertising and other revenue for the total company was $21.5 million, slightly down from $21.7 million, a decrease of 0.9%[45]

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PVH Corp. PVH, the clothing company that owns brands such as Tommy Hilfiger and Calvin Klein, will release earnings results for its second quarter, after the closing bell on Tuesday, Aug. 27. Analysts expect the New York-based company, which also owns Warner's, Olga and True & Co., to report quarterly earnings at $2.29 per share. That's up from $1.98 per share in the year-ago period. PVH is projected to post revenue of $2.07 billion, according to data from Benzinga Pro. On Aug. 7, PVH declared a quarterly c ...

olaser Soon after my last article on the Tommy Hilfiger and Calvin Klein brands' owner PVH Corp. (NYSE:PVH), its stock price fell off a cliff following its final quarter (Q4 2023) and full-year 2023 (year ending January 2024) results (see chart below). The results themselves weren't bad compared with expectations. But there was a very good reason for the price decline. The outlook, as the company expected the number to contract by 6-7% in 2024 in both reported and constant currency terms. With a 10% year-on ...