Tommy Hilfiger and Calvin Klein continue to drive growth at PVH Corp in Q4

PVH Corp. has reported a 2% increase in revenue to £2.024 billion ($2.489 billion) for the fourth quarter of 2022, driven by growth in both its Tommy Hilfiger and Calvin Klein brands.

Revenue at Tommy Hilfiger and Calvin Klein increased 3% each, compared to the fourth quarter of 2021.

Total revenue was boosted by "strong revenue growth" in Europe and North America. However, it was negatively impacted by the war in Ukraine, which saw closures of company stores in Russia and a reduction in wholesale shipments to Ukraine.

Direct-to-Consumer revenue increased 4%, whilst wholesale was flat. Digital revenue decreased 8% against "exceptionally strong" revenue in the prior year period. Digital penetration as a percentage of total revenue was approximately 20%.

Gross margin dropped to 55.9%, with price increases and a favourable shift in regional and channel mix offset by higher costs and increased promotional activity due to elevated inventory levels industry-wide.

For the full year, PVH Corp. shared the following results:

• Revenue down 1% to £7.338 billion ($9.024 billion).
• Tommy Hilfiger revenue down 1%.
• Calvin Klein revenue up 3%.
• Heritage Brands revenue down 26%.

Looking ahead, revenue is expected to increase 3-4% in 2023. For the first quarter, revenue is projected to be relatively flat.

Stefan Larsson, PVH Corp. CEO, said: “We delivered strong fourth quarter performance. Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy enabled us to compete to win despite the challenging macro situation.

"Looking ahead, we are entering 2023 with significant momentum, and we will continue to execute the PVH+ Plan with discipline towards our long-term vision to build Tommy Hilfiger and Calvin Klein into the most desirable lifestyle brands in the world."