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December 2, 2021

PVH reports 10% increase in third-quarter revenue to $2.3bn

The company expects its full-year revenue to rise by between 27% and 28%.

US-based fashion and lifestyle retailer PVH has reported that its revenue increased by 10% to $2.33bn in the third quarter (Q3) of 2021 (FY21), which ended on 31 October.

The company’s portfolio includes Calvin Klein, Tommy Hilfiger, Van Heusen and IZOD among other brands.

Tommy Hilfiger registered a 12% increase in revenue for the quarter, while Calvin Klein posted a 22% revenue growth.

During the period, PVH’s direct-to-consumer revenue was flat, with its wholesale revenue increasing by 17%.

The company’s digital commerce saw a 21% rise in Q3 from a year earlier.

PVH said that its Australian retail stores remained shut on a temporary basis for most of the quarter due to the Covid-19 pandemic.

The retailer’s gross margin was 57.7%, an increase from 52.0% in the prior-year period.

Its overall inventory dropped by 7%, while its in-transit inventory levels increased by more than 50%.

PVH’s earnings per share (EPS) was $3.89 calculated using generally accepted accounting principles (GAAP), up from $0.98 in Q3 2020.

PVH CEO Stefan Larsson said: “Our third-quarter earnings significantly exceeded our guidance, led by our international businesses, and we achieved overall stronger than expected margin performance across brands.

“This reflects the strength of our global iconic brands, Calvin Klein and Tommy Hilfiger, and the pricing power we are able to achieve through strength in product, consumer engagement and consumer experience in the digitally led marketplace.

“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 US port delays, which pushed wholesale shipments into the fourth quarter.”

PVH has increased its earnings guidance for the full year, with its revenue expected to increase by between 27% and 28% and its GAAP EPS forecast at around $10.75.

In June, the company revealed plans to sell assets of its Heritage Brands business to Authentic Brands Group (ABG). The deal closed in Q3.