PVH Corporation, the parent company of American brands Calvin Klein and Tommy Hilfiger, said Monday that sales had slipped 5 per cent in the fourth quarter to $2.37 billion, while full-year sales for 2024 fell 6 per cent to $8.65 billion. While in the red, both results exceeded analyst expectations, which had quarterly and annual sales falling by as much as 7 per cent.
The company also shared its outlook for 2025, with revenue expected to be flat or up slightly over 2024. The better-than-expected performance and outlook for the year — particularly at a time when most brands are downgrading their outlooks or declining to share — sent shares soaring 15 per cent in after-hours trading on Monday. A call with investors is scheduled for Tuesday morning.
“Driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well positioned for 2025,” PVH CEO Stefan Larsson said in a statement. The PVH+ Plan to drive growth and turn around sales across categories has been in place since 2022.
By brand, Tommy Hilfiger revenue decreased 5 per cent compared to 2023, with international revenue decreasing 7 per cent and flat sales in North America. Calvin Klein revenue decreased 2 per cent, with international sales down 4 per cent and North America sales up 3 per cent. The company attributed a strong performance in North America to a shift in wholesale delivery schedules, bringing new inventory to stores in the fourth quarter rather than the third.
By channel, wholesale revenue was down 5 per cent, thanks to a pull back on promotions in Europe that was offset by the shift in delivery timing. Direct-to-consumer (DTC) sales also fell 5 per cent, dragged by a 10 per cent decline in digital sales, attributed to the planned reduction of sales in Europe.
“Looking ahead, we are positioning the company for long-term, sustainable growth and remain relentlessly focused on fuelling our brand-building consumer flywheel to unlock our full potential around the world,” Larsson said. “In North America, we will continue to drive a double-digit EBIT margin, in Europe our autumn 2025 order books are back to growth, and in Asia-Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region. I want to thank our teams globally for all their hard work as we take this major step towards delivering on our vision.”
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