PVH Chairman and CEO Manny Chirico
Breaks Down 3Q Financial Results
November 26, 2019
The calendar has flipped into the fourth quarter – and the holiday season – and PVH Corp. Chairman and CEO Emanuel Chirico is “cautiously optimistic” for what it will bring. That’s on the heels of raising PVH’s annual earnings guidance for the year.
Still, he noted, it’s a difficult market environment with volatility specifically in North America and China, including the business disruption caused by the ongoing protests in Hong Kong and the U.S.-China trade tensions.
Chirico outlined PVH’s 3Q financial performance in a call with investors on Nov. 26, and he commented on macro trends for the rest of 2019 and uncertainties for 2020.
Earnings per share exceeded the high end of the previous guidance range. Overall 3Q revenues rose 3% year over year to $2.6 billion, which Chirico attributed largely to strength of the TOMMY HILFIGER and CALVIN KLEIN brands in Europe. “We have great confidence in our ability to navigate this evolving consumer landscape and uncertain market environment with the underlying power of CALVIN KLEIN and TOMMY HILFIGER and our global diversified business model.”
The compressed calendar between Thanksgiving in the U.S. and Christmas is an unknown factor, though, he said. “We continue to take a conservative approach to planning the fourth-quarter holiday season. Our sales and earnings guidance assumes a very competitive and highly promotional macro holiday environment, and we expect continued headwinds from uncertainty surrounding trade.”
Taking a bird’s-eye view, Chirico said PVH’s best opportunities are to capitalize on targeted, purposeful investments, including:
A snapshot of each of PVH’s businesses in 3Q – and Chirico’s commentary:
Tommy Hilfiger: $1.2 billion of revenue, up 10% year over year
“We continue to be very pleased with how strong our TOMMY HILFIGER brand is. In particular, the brand is experiencing outstanding traction globally as we deepen our connection with our core Tommy consumer while at the same time converting the next generation of consumers.”
Calvin Klein: $969 million of revenue, up 1% year over year
“I am pleased to report that we saw an uptick in CALVIN KLEIN brand engagement and awareness as it remained in the Top 10 for earned media value against its competitive set, demonstrating the health of the brand.”
Heritage Brands: $375 million of revenue, down 13% year over year,
“As we look into 2020, we continue to seek ways to optimize and streamline the Heritage Brands business to generate enhanced returns. In our wholesale business, we are looking at which brands serve the business best and are re-evaluating the licensed brands in our dress furnishings and sportswear business.”
For the full 3Q financial results, click here.