Tommy Hilfiger owner PVH Corp Q1 sales boosted by international business

PVH Corp has reaffirmed its full-year outlook after reporting a 2% increase in revenue to £1.73 billion ($2.158 billion) for the first quarter. 

The company’s revenue growth was driven by its international businesses, particularly in the Asia Pacific region and Europe.

For Q1, PVH Corp shared the following individual brand results:

• Tommy Hilfiger revenue up 5%, with international revenue up 3%.
• Calvin Klein revenue flat, with international revenue up 7%.
• Heritage Brands revenue down 12%.

Direct-to-Consumer revenue increased 8%, while wholesale decreased 2%.

Total digital revenue decreased 3%, with growth from the company’s owned and operated digital commerce business more than offset by a decrease in wholesale sales. Digital penetration as a percentage of total revenue was approximately 20%.

Gross margin dropped to 57.9%, with price increases, lower freight costs and a favourable shift in regional and channel mix offset by higher product costs.

Looking ahead, PVH Corp expects second quarter revenue to increase low single-digits. For the full-year, revenue is anticipated to increase 3% to 4%.

Stefan Larsson, CEO of PVH Corp, said: "We delivered a strong start to the year with first quarter performance ahead of our guidance for both revenue and earnings, driven by our disciplined execution of the PVH+ Plan.

"We are reaffirming our guidance for the year, reflecting the confidence we have in our ability to continue to deliver on our near-term commitments, while maintaining a strong focus on our long-term vision to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world, and position PVH as one of the best performing brand groups in our sector."