PVH Corp.’s Post

We reported Q1 2024 results today.    Stefan Larsson, Chief Executive Officer, commented, “We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter. 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.”    Mr. Larsson added, “Although we are still early in our journey to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, we are already creating some of the highest consumer engagement in the history of our brands. We also continue to gain traction in all five PVH+ Plan growth drivers with strong growth in key product categories and hero products with significant gross margin expansion. This is fueled by the build-out of our demand-driven supply chain and targeted growth investments, complemented by cost efficiencies from simplifying how we work.”    Read more: https://bit.ly/3wThK9Z   #PowerOfPVH #CalvinKlein #TommyHilfiger 

Here's My Analysis and Recap of PVH Corp.'s Q1 2024 Earnings Report: Despite exceeding #earnings expectations, PVH Corp.'s Q1 2024 financial performance raises critical questions about its strategic direction and #market execution. The company's reported figures reflect both the challenges of a shifting retail environment and the impact of #strategic initiatives aimed at enhancing profitability. The overall revenue dropped by 10% to $1.952 billion, slightly better than forecasted but still a substantial decline. The Tommy Hilfiger segment was particularly weak, with a 10% decrease in #revenue driven by a severe 14% drop in international sales, primarily in Europe. This strategic reduction in Europe, aimed at driving higher-quality sales, indicates deeper issues in maintaining market share and effective execution. Calvin Klein's performance was stagnant, with a 4% increase in North America compensating for the 2% decline internationally. The flat overall performance raises concerns about the brand's global appeal and market strategy. Additionally, Heritage Brands' revenue plummeted by 65%, largely due to the divestiture of the women’s intimates business, further eroding the company's revenue base. The company's direct-to-consumer segment showed lackluster growth, with digital commerce revenues falling by 6%, suggesting possible issues with the online shopping experience or competitive pressures. While gross margins improved by 350 basis points to 61.4%, reflecting effective cost management and pricing strategies, these gains are overshadowed by the significant revenue declines. #PVH's reaffirmation of a full-year revenue decrease of 6-7% underscores the persistent challenges it faces in the global market. Although the company raised its EPS guidance, indicating confidence in profitability through cost controls, the substantial drops in key segments highlight critical issues in strategic execution and market positioning. PVH must address these deep-seated challenges to stabilize its revenue and sustain long-term growth. #Earnings #Report #Q1 #NorthAmerica #Fashion #GlobalBrands

PVH Corp. Corp, the parent company of Calvin Klein and Tommy Hilfiger, reported a 6% revenue decline in Q2 2024, totaling $2.1 billion. This marks the first year-over-year drop in direct-to-consumer (DTC) revenue since 2020, attributed to a challenging consumer environment and strategic changes in Europe. Despite these setbacks, PVH Corp. remains focused on long-term growth, aiming for $12.5 billion in annual revenue by 2025. The company is refining its sales strategies and leveraging data-driven supply chains to navigate the global economic landscape. Let's see if brands like PVH can adapt to these market challenges and drive future growth. #FashionIndustry #BusinessStrategy #PVH #CalvinKlein #TommyHilfiger

“In this environment where people are wondering what’s going to happen to consumer spending, companies that are giving weak guidance are seeing their stocks get hit. We saw that with #Nike and #Lulu. The quarters themselves were good. The guidance disappointed. I want to give the company the credit they deserve. It was a good result this quarter, even if the guidance fell short. So I don’t think we should just look at the stock and say there’s a huge problem. I think the question is how large should these brands be. #PVH has phenomenal brands. Among the largest in the world. But we need to ask how large should brands get. Is there a time when they’ve hit a level of saturation and they’d be better served by getting higher margins? That’s always been our question.” I joined Bloomberg following PVH Corp.’s earnings-driven sell-off, as the company, like Nike and lululemon, beat its recent quarter but introduced disappointing forward guidance. http://spr.ly/6043w8FNd

Simeon Siegel, CFA joins Bloomberg following PVH’s earnings-driven sell-off, as the company, like NKE and LULU, beat its recent quarter but introduced disappointing forward guidance. “In this environment where people are wondering what’s going to happen to consumer spending, companies that are giving weak guidance are seeing their stocks get hit. We saw that with Nike and Lulu. The quarters themselves were good. The guidance disappointed. I want to give the company the credit they deserve. It was a good result this quarter, even if the guidance fell short. So I don’t think we should just look at the stock and say there’s a huge problem. I think the question is how large should these brands be. PVH has phenomenal brands. Among the largest in the world. But we need to ask how large should brands get. Is there a time when they’ve hit a level of saturation and they’d be better served by getting higher margins? That’s always been our question.” http://spr.ly/6043w8FNd

Shares in Calvin Klein and Tommy Hilfiger owner PVH Corp slumped over 20% on Tuesday after the firm disappointed with future sales guidance. Following a 2% increase to US$9.22 billion last year, PVH warned sales would likely fall between 6% and 7% in 2024. This would be driven in part by the sale of its Heritage Brands women’s intimates segment, but also as a result of a tougher macroeconomic backdrop, the group said in a statement. Per share earnings were forecast to be largely flat, at between US$10.75 and US$11.00, compared to US$10.76 last year. Chief financial officer Zac Coughlin commented that PVH was set on accelerating its plan to double down on growth of the core Calvin Klein and Tommy Hilfiger brands in the year ahead. More at #Proactive #ProactiveInvestors http://ow.ly/cJ7o105obYa

CALVIN KLEIN OWNER PVH TUMBLES 20% ON WARNING OF EUROPE WEAKNESS Bloomberg: PVH Corp. shares plunged 20% in late trading after the company gave full-year sales guidance that fell short of expectations. The clothier, which owns the Tommy Hilfiger and Calvin Klein brands, said it expects revenue this year to decrease 6% to 7%, compared with a 2% increase last year. While some of the expected decrease stems from the sale of Heritage Brands, its women’s intimates business, the company also noted a difficult macroeconomic backdrop, particularly in Europe. PVH has been working to execute a transformation plan focused on strengthening Calvin Klein and Tommy Hilfiger, which have lost momentum among shoppers in recent years. In the fourth quarter, which includes the crucial holiday season, profitability exceeded the average analyst estimate, thanks in part to better inventory management. That said, revenue growth hasn’t held up in some regions. Calvin Klein sales in North America fell 8% in the fourth quarter, driven by a decline in the wholesale business, while Tommy Hilfiger international revenue was down 1%. https://lnkd.in/dHqEmhWv #fashion #crisis #metaverse #metaverse

𝐌𝐚𝐜𝐲’𝐬 𝐒𝐡𝐢𝐟𝐭𝐬 𝐭𝐨 ‘𝐀 𝐁𝐨𝐥𝐝 𝐍𝐞𝐰 𝐂𝐡𝐚𝐩𝐭𝐞𝐫’ Macy’s has unveiled a comprehensive turnaround strategy dubbed “A Bold New Chapter,” which involves significant restructuring aimed at adapting to evolving consumer preferences and market dynamics. Here’s a breakdown of the key elements of Macy’s plan: Store Closures and Resizing: Macy’s plans to close around 150 of its traditional department stores, which represents approximately 30% of its total. This move is part of a broader strategy to resize its portfolio and optimize its physical presence in response to changing consumer behaviors. Additionally, the company intends to open smaller versions of its flagship Macy’s stores, catering to different shopping preferences. Focus on Bloomingdale’s and Bluemercury: Macy’s aims to capitalize on the success of its Bloomingdale’s and Bluemercury banners by expanding their presence. This expansion includes opening new Bloomingdale’s locations and increasing the number of Bluemercury stores. Both brands have shown strong performance compared to the core department store business. Store Upgrades and Enhancements: Macy’s remaining department stores will undergo upgrades to enhance the shopping experience. This includes improvements in merchandising, visuals, and staffing, particularly in high-demand areas such as women’s shoes and ready-to-wear. Continue Reading: https://lnkd.in/gTYBeds6 Macy's Deepti Marwah GAGAN MARWAH Garment Show of India Apparel Fashion Forum (AFF) #apparels #macys #retail #global #brand #strategy #expansion #consolidation

🚀 Marks and Spencer is set to overtake TK MAXX and Frasers Group to become the UK’s second-largest fashion retailer, right behind Next by 2027. 📊 Data from Retail Week, Retail navigator and Lumina Intelligence predicts how the industry is set to evolve over the next few years. Which brands will dominate our high streets, phone screens and wardrobes? https://lnkd.in/emfifffC #RetailNews #FashionIndustry #RetailTrends #CX #Zendesk #Retail #DigitalTransformation #CustomerExperience #ExperienceEconomy #RetailTransformation #CXStrategy #RetailExperience #OmnichannelRetail #RetailInnovation #RetailLeadership #RetailTrends #Ecommerce #RetailSuccess #CXTransformation #RetailGrowth #DigitalStrategy #RetailExcellence #CXInnovation

It’s interesting how Abercrombie & Fitch’s resurgence highlights the importance of combining both data-driven strategies and human expertise. Retailers increasingly rely on analytics to fine-tune inventory management and make more precise merchandising decisions, but the “human touch” allows them to adapt to trends, customer preferences, and market conditions in a way that algorithms can’t fully capture. The apparel retailer’s sales, comps, and gross margins were up significantly, thanks to “old-fashioned merchandising chops”. Fran Horowitz’s leadership, backed by her deep experience, seems to have struck that perfect balance, allowing the brand to resonate again with consumers and see improved sales and margins. It shows that while technology is essential, the intuition and creativity of experienced leaders still play a crucial role in a brand’s success. Check out the merchandising success story on Retail Dive.