PVH's Q4 Earnings Surpass Estimates, DTC Revenues Dip 5% Y/Y

Core Viewpoint - PVH Corporation reported better-than-expected fourth-quarter results for fiscal 2024, with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined year over year due to a challenging macroeconomic environment [1]. Financial Performance - Adjusted earnings were $3.27 per share, a decrease of 12.1% from $3.72 in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.19 and the company's guidance of $3.05-$3.20 [2]. - Revenues fell 5% year over year to $2.372 billion, but this was above the consensus mark of $2.347 billion, with management initially guiding for a 6-7% decline [3]. - Gross profit was $1.4 billion, down 6.7% year over year, while gross margin improved by 210 basis points to 58.2% [7]. Segment Analysis - Calvin Klein segment revenues decreased by 2% year over year to $1 billion, with a 3% increase in North America offset by a 4% decline internationally [8]. - Tommy Hilfiger brand revenues dropped 5% year over year to $1.3 billion, with international revenues down 7% [9]. - The Heritage Brands segment saw a significant revenue decline of 41% year over year, including a 28% drop in women's intimates sales [9]. Cash Flow and Share Repurchase - At the end of the fourth quarter, PVH had cash and cash equivalents of $748 million and long-term debt of $1.6 billion [11]. - The company repurchased 2.4 million shares for $247 million in the reported quarter, totaling 4.7 million shares for $500 million in fiscal 2024 [11]. Future Outlook - For Q1 FY25, revenues are expected to be flat to down 2% year over year, with non-GAAP EPS projected between $2.10-$2.25, down from $2.45 in the previous year [13][14]. - For fiscal 2025, PVH anticipates revenues to be flat to slightly up year over year, with adjusted operating margins expected to remain nearly flat compared to 10.1% in fiscal 2023 [15]. - Non-GAAP EPS guidance for fiscal 2025 is set between $12.40-$12.75, reflecting a negative impact of around 20 cents per share from currency movements [16].