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Highlights

  • Earnings Beat: PVH reported Q4 adjusted earnings of $3.27 per share, surpassing analyst expectations of $3.21 per share.

  • Revenue Decline: Sales fell 5% to $2.372 billion, but still topped forecasts of $2.33 billion.

  • Share Buyback Plan: PVH announced a $500 million accelerated share repurchase, using $350 million in cash and $150 million in short-term debt.

PVH Corp. (NYSE:PVH), the parent company of Calvin Klein and Tommy Hilfiger, posted better-than-expected Q4 earnings, despite a 5% year-over-year revenue decline. The company also unveiled plans for a $500 million share repurchase program. 

Q4 Financial Performance

PVH reported adjusted earnings of $3.27 per share, exceeding analysts' projections of $3.21 per share. However, revenue declined 5% to $2.372 billion, though it surpassed estimates of $2.33 billion.

  • Calvin Klein sales fell 2%, with a 3% growth in North America helping offset declines.

  • Tommy Hilfiger revenue dropped 5%, impacted by a 7% decline in international sales, while North American sales remained flat.

  • Heritage Brands revenue plunged 41%, largely due to a 28% drop from the sale of its women's intimates business.

  • Direct-to-consumer and wholesale revenues both declined 5%.

  • Inventory levels rose 6% compared to the previous year.

Guidance for FY25

For Q1, PVH expects adjusted earnings between $2.10 and $2.25 per share, aligning with analyst expectations of $2.24 per share. Revenue is projected to be flat or decline by up to 2%.

For the full fiscal year, PVH anticipates adjusted earnings between $12.40 and $12.75 per share, surpassing analyst estimates of $11.68 per share. The company expects flat revenue growth to a slight increase in 2025.

$500M Share Buyback Plan

PVH also announced a $500 million share repurchase program, leveraging $350 million in cash and up to $150 million in short-term debt. This buyback is part of its existing $5 billion repurchase authorization, which had $1.8 billion remaining as of February 2, the end of its fiscal year.