US clothing company PVH expects sales to expand 26-28% in FY21

“We delivered another quarter of high-quality growth and strong performance above our guidance. This was driven by disciplined execution of our key strategic priorities, led by Calvin Klein and Tommy Hilfiger and our international markets, focused on product strength and winning in the marketplace, super-charged by e-commerce,” Stefan Larsson, president at PVH Corp, said in a press release. 

 

PVH experienced strong performance in its international businesses, primarily driven by Europe, according to the company. The prior year period was impacted negatively by extensive temporary store closures, as virtually all of the company’s retail stores and the majority of its wholesale customers’ stores globally were closed during the first month of the Q2 and were operating at significantly reduced capacity for the remainder of the quarter.

 

Sales from Tommy Hilfiger brand during the second quarter improved 41.3 per cent to $1,135.5 million, while Calvin Klein sales expanded 56.2 per cent to $922.4 million.

 

Gross profit for the three-month period increased to $1,333.6 million. The US global apparel firm’s earnings before interest and taxes surged to $279.0 million. Net income for Q2 improved to $181.8 million compared to the loss of $51.7 million in the Q2 FY20 ended on August 2, 2020.

 

Total direct to consumer revenue for the second quarter of FY21 grew 19 per cent compared to the prior year period, whereas digital commerce remained flat despite exceptional growth in 2020. Moreover, total wholesale revenue climbed 77 per cent driven by strong performance in Europe.

 

“Looking ahead, we are pleased with our recovery, which has been faster than expected across both global brands. Our continued execution of our key strategic priorities will drive business performance in the near-term, while also positioning the company for long-term, sustainable profitable growth,” Larsson concluded in the result.