PVH Corp. reports 46% sales uptick in Q2
Tommy Hilfiger and Calvin Klein owner PVH Corp. saw second quarter revenues increase 46% year-on-year to $2.313 billion, and has now raised its 2021 full year outlook as it continues to see gross margins above pre-pandemic 2019 levels.
Tommy Hilfiger total revenues leapt 41% year-on-year to $1.136bn, Calvin Klein total revenues rose 56% to $922.4m, while Heritage Brands saw revenues rise 37% to $255.3m.
PVH Corp. CEO, Stefan Larsson, commented: “We delivered another quarter of high-quality growth and strong performance above our guidance. This was driven by disciplined execution of our key strategic priorities, led by Calvin Klein and Tommy Hilfiger and our international markets, focused on product strength and winning in the marketplace, super-charged by ecommerce.
“Our international performance was particularly strong, which performed above 2019 pre-pandemic levels. Based on our strong first half results, along with strong underlying trends, we are raising our full year outlook, which continues to reflect gross margins above 2019 pre-pandemic levels and further improvement in our operating margin.
“Looking ahead, we are pleased with our recovery, which has been faster than expected across both global brands. Our continued execution of our key strategic priorities will drive business performance in the near-term, while also positioning the company for long-term, sustainable profitable growth.”
In June, PVP Corp. announced it has entered a definitive agreement to sell “certain intellectual property and other assets” of its Heritage Brands business to Authentic Brands Group (ABG) for $220m, which includes the Izod, Van Heusen, Geoffrey Beene and Arrow brands, to focus on the global growth of its Calvin Klein and Tommy Hilfiger brands. The transaction is expected to be finalised in the third quarter of PVH’s 2021 year.