US fashion firm PVH Corp's revenue surges 2% to $2.158 bn in Q1 FY23

The company experienced significant growth in its direct-to-consumer business, which increased by 8 per cent YoY (12 per cent on a constant currency basis). However, the wholesale business recorded a 2-per cent YoY decrease (1 per cent increase on a constant currency basis).

The digital commerce business saw varied results, with revenue from owned and operated digital commerce increasing 4 per cent YoY (8 per cent on a constant currency basis). However, total digital revenue dropped 3 per cent YoY (decreased 1 per cent on a constant currency basis). Despite this setback, digital penetration as a percentage of total revenue stood at approximately 20 per cent, the company said in a press release.

PVH Corporation's earnings before interest and taxes (EBIT) hit $199 million in Q1 FY23, inclusive of a $9 million negative impact due to foreign currency translation. This figure is slightly lower than the $210 million reported in the previous year's same quarter. Earnings per share (EPS) marked a 10 per cent increase compared to the previous year, coming in at $2.14, despite the negative impact of $0.11 per share related to foreign currency translation.

Among PVH Corporation's notable brands, Tommy Hilfiger's revenue surged by 5 per cent compared to the prior year (8 per cent on a constant currency basis), while Calvin Klein's revenue remained flat (3 per cent increase on a constant currency basis). Heritage Brands, however, experienced a 12 per cent decrease compared to the prior year period.

The company's inventory was 24 per cent higher than in the first quarter of the prior year, the release added.

“We delivered a strong start to the year with first quarter performance ahead of our guidance for both revenue and earnings, driven by our disciplined execution of the PVH+ Plan. We are reaffirming our guidance for the year, reflecting the confidence we have in our ability to continue to deliver on our near-term commitments, while maintaining a strong focus on our long-term vision to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, and position PVH as one of the best performing brand groups in our sector,” said Stefan Larsson, chief executive officer.

Fibre2Fashion News Desk (DP)