PVH Corp, Parent of Calvin Klein, Lowered Annual Outlook

Scott Peters
02 Jun, 2022
New York City

PVH Corp, the parent of Calvin Klein and Tommy Hilfiger, said sales in the first quarter ending in April 2022 rose 2% to $2.123 billion and net income increased 33% to $133.1 million from a year ago. 

Diluted earnings per share were ahead of expectations and rose to $1.94 from $1.38 a year ago. 

Segment Sales 

Tommy Hilfiger revenue increased 2% and advanced 7% on a constant currency basis, including a 2% decrease or 5% increase on a constant currency basis in International revenue and a 15% increase in North America revenue. 

Calvin Klein revenue increased 13% and jumped 17% on a constant currency basis, including a 7% increase  or 13% increase on a constant currency basis in International revenue and a 26% increase in North America.

Heritage Brands revenue dropped 31% from a year ago and includes a 42% decrease resulting from the Heritage Brands transaction and the exit from the Heritage Brands retail business.

In-transit inventories rose 10% from a year ago largely because of supply chain disruptions but total inventories fell 4% accounting for Heritage transaction and foreign exchange adjustments. 

Stock Repurchase Plan 

The Company repurchased 1.2 million shares of its common stock for $100 million during the first quarter of 2022  and has used $1.9 billion of its $3.0 billion stock repurchase program. 

The company plans to increase its stock repurchases in 2022 to $400 million from $225 million, following the recently approved $1.0 billion increase to the stock repurchase authorization 

Guidance and Outlook 

The branded apparel maker lowered its full-year 2022 revenue growth estimate to between 1% and 2% from the earlier estimated range between 2% and 3%. 

The company lowered its annual earnings per share outlook to $9.20 a share including the revised foreign exchange adjustment of 85 cents compared to previous estimate of 70 cents.  

The apparel maker reported $13.25 a share in 2021. 

Effective tax rate is expected to be higher than in 2021 and range between 28.5% and 29.5%. 

Revenues in the second quarter is expected to range between 3% and 4% and earnings per share to range between $2.20 and $2.51. 

Company and Stock 

PVH Corp gained 1.8% to $72.63 after the parent of Calvin Klein and Tommy Hilfiger reported quarterly results. 

PVH has lost 32.7% in the year so far.