PVH(US:PVH)2025-03-31 20:19Revenue Performance - Fourth quarter revenue decreased 5% to $2.372 billion, exceeding guidance of a 6% to 7% decline[4] - Full year revenue decreased 6% to $8.653 billion, aligning with guidance of a 6% to 7% decline[4] - Total revenue for the quarter ended February 2, 2025, was $2,371.6 million, a decrease of 4.7% compared to $2,489.9 million for the same quarter in 2024[35] - The company reported total revenue for the year ended February 2, 2025, of $4,327.1 million, a decrease from $4,479.5 million for the year ended February 4, 2024[39] - Total revenue for PVH Corp. decreased to $8,652.9 million for the year ended February 2, 2025, down from $9,217.7 million in the prior year, representing a decline of 6.1%[51] Earnings and Profitability - Non-GAAP EPS for the fourth quarter was $3.27, exceeding guidance of $3.05 to $3.20[4] - Non-GAAP EBIT for the full year was $865 million, down from $931 million in 2023, impacted by foreign currency translation[13] - Net income for the quarter was $157.2 million, down 42.2% from $271.8 million in the prior year quarter[35] - Diluted net income per share for the quarter was $2.83, compared to $4.55 in the same quarter last year, reflecting a decline of 37.7%[35] - For the quarter ended February 2, 2025, net income on a non-GAAP basis was $181.4 million, compared to $222.1 million for the quarter ended February 4, 2024, representing a decrease of 18.4%[41] - Diluted net income per common share on a non-GAAP basis for the quarter ended February 2, 2025, was $3.27, down from $3.72 for the same quarter last year, a decline of 12.1%[39] - For the year ended February 2, 2025, net income was $598.5 million, down from $665.0 million the previous year, a decrease of 10.0%[45] - The diluted net income per common share for the year was $10.56, compared to $11.74 for the previous year, indicating a decline of 10.0%[45] Expenses and Costs - Selling, general and administrative expenses for the quarter were $1,156.7 million, compared to $1,216.3 million in the same quarter last year, indicating a decrease of 4.9%[35] - Selling, general and administrative (SG&A) expenses for the quarter ended February 2, 2025, were $1,150.7 million, a decrease of 5.0% compared to $1,211.0 million for the quarter ended February 4, 2024[39] - The company incurred pre-tax restructuring costs totaling $24 million in 2024, primarily related to severance and the simplification of its operating model[27] - The company incurred restructuring costs related to its multi-year initiative to simplify its operating model, which included severance and a gain on the sale of a warehouse and distribution center[37] Tax and Interest - The effective tax rate for 2024 was 20.0% on a GAAP basis, compared to 19.3% in the prior year[12] - The effective tax rate is projected to be approximately 18%[26] - Interest expense for the first quarter of 2025 is projected to increase to approximately $20 million, up from $18 million in the first quarter of 2024[26] Inventory and Assets - Inventory increased 6% compared to the prior year, reflecting a strategic investment in core inventory[9] - Total current assets increased to $3,487.6 million as of February 2, 2025, up from $3,259.7 million a year earlier, marking an increase of 7.0%[46] - Cash and cash equivalents rose to $748.0 million, compared to $707.6 million in the previous year, reflecting a growth of 5.7%[46] - The company's total assets decreased to $11,033.2 million from $11,172.9 million year-over-year, a decline of 1.2%[46] - The company’s total liabilities decreased to $5,892.7 million from $6,054.0 million year-over-year, a reduction of 2.7%[46] - The company’s goodwill and other intangible assets decreased to $5,281.0 million from $5,419.5 million year-over-year, a decline of 2.6%[46] Segment Performance - Tommy Hilfiger North America reported net sales of $1,252.8 million for the year ended February 2, 2025, a slight decrease from $1,262.7 million in the previous year[51] - Calvin Klein North America achieved net sales of $1,120.0 million for the year ended February 2, 2025, compared to $1,112.4 million in the previous year, indicating a modest increase[51] - Tommy Hilfiger International's net sales were $3,218.5 million for the year ended February 2, 2025, a decline of 6.8% from $3,452.9 million in the previous year[56] - Total Calvin Klein revenue was $3,856.7 million for the year ended February 2, 2025, down from $3,914.5 million in the prior year, a decrease of 1.5%[56] Future Projections - Projected 2025 revenue is expected to be flat to slightly increase compared to 2024[20] - Projected 2025 non-GAAP EPS is in the range of $12.40 to $12.75, including a negative impact of approximately $0.20 per share from foreign currency translation[20] - The company is unable to project full year 2025 operating margin and EPS on a GAAP basis due to uncertainties regarding restructuring costs[22] - Constant currency revenue for the first quarter of 2025 is estimated to change flat to a decrease of 1%[57] Operational Initiatives - The company is focusing on improving systems and automation to drive more efficient, cost-effective operations across the organization[37] - The company aims to reduce people costs in its global offices by approximately 10% by the end of 2023 as part of its 2022 cost savings initiative[37]