PVH’s wholesale channel leads 10% revenue rise in Q3
PHV Corp., owner of the Tommy Hilfiger and Calvin Klein brands, announced a year-over-year increase of 10% in its third-quarter revenue on Wednesday, with progress driven by the company’s wholesale operations.
In the third quarter ended October 31, 2021, the New York-based apparel group achieved revenue of $2.33 billion, up from $2.12 billion in the same period in the previous year.
The company’s wholesale revenues for the quarter rose 17%, despite the impact of ongoing supply chain disruptions and the group’s recent sale of the core of its heritage brands business. Revenue in the direct-to-consumer business, on the other hand, was flat compared to the prior-year period, although digital commerce did post a 21% increase.
Overall, quarterly revenue in all of PVH’s digital channels grew around 15% year over year, while digital penetration as a percentage of total-company sales was approximately 21%.
Broken down by brand, the group’s revenues increased 12% at Tommy Hilfiger, reflecting a 13% rise in North America and 11% growth internationally. At Calvin Klein, revenues increased 22% year over year, with the business’ revenues rising 19% internationally and 27% in North America.
According to PVH, revenue at the company’s international businesses exceeded the pre-pandemic levels seen in the third quarter of 2019.
The group’s quarterly net income totaled $279.7 million, or $3.89 per share, compared to $69.8 million, or $0.98 per share, in the prior-year period.
“Our third quarter earnings significantly exceeded our guidance, led by our international businesses, and we achieved overall stronger than expected margin performance across brands,” explained PVH CEO Stefan Larsson in a release.
“While Covid-related challenges remain, we delivered double-digit revenue growth, which would have been even stronger, and above guidance, if not for the greater than anticipated impact of U.S. port delays that pushed wholesale shipments into the fourth quarter,” he added.
Looking back over the first nine months of the fiscal year, PVH’s year-to-date revenue totaled $6.73 billion, up 33% compared to $5.04 billion in the same period in the previous year. Net income was $561.5 million, or $7.77 per share, compared to a loss of $1.078 billion, or $15.15 per share, a year ago.
The company currently expects its full-year revenue to grow in the range of 27% to 28% compared to fiscal 2020. Annual earnings per share are predicted to be $10.75. In the fourth quarter, PVH anticipates that revenue will increase between 11% and 14% year over year, while earnings per share are expected to be approximately $3.00.
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