PVH Corp. Reports Mixed Q4 Results, Stock Drops on 2024 Outlook
PVH Corp., the parent company of iconic brands Tommy Hilfiger and Calvin Klein, has reported a mixed bag of results for the fourth quarter and full year 2023. While revenue remained flat year-over-year at $2.49 billion, beating expectations, the company's stock slipped 22% in premarket trading due to a projected revenue decrease of 6% to 7% in the 2024 fiscal year.
The company's inventory decreased by 21% in line with expectations, as it proactively manages inventory levels. Both Tommy Hilfiger and Calvin Klein brands saw revenue increases in Q4, with Tommy Hilfiger International revenue decreasing by 1% and Tommy Hilfiger North America rising by 4%. However, Calvin Klein North America fell by 8% due to wholesale business challenges throughout the fiscal year, while Calvin Klein International revenue increased by 12%.
PVH Corp. faces challenges ahead with a projected revenue decrease in the 2024 fiscal year. However, the company remains optimistic about its growth prospects, particularly in the Asia-Pacific and North America regions, as it continues to execute its PVH+ plan. The company's focus on boosting brand desirability and consumer loyalty is expected to drive long-term growth.
