Tommy Hilfiger and CK owner lowers FY22 outlook
Particularly, Tommy Hilfiger revenues declined 5% year-on-year to $1.07bn (£93m), and Calvin Klein revenues decreased 1% to $910m (£784.9m)
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PVH Corp has lowered its full year outlook for 2022, with revenues now expected to decrease 4% to 3% (increase 3% to 4% on a constant currency basis). The company also plans to reduce people costs in its global offices by 10% to streamline the organisation, drive efficiencies and fuel investments.
PVH said the outlook has been adjusted to reflect lower consumer demand amid inflationary pressures, as consumers reduce discretionary spend and certain wholesale customers take a more cautious approach.
The announcement comes as the Tommy Hilfiger and Calvin Klein owner posted an 8% drop in revenues to $2.13bn (£1.83bn) for the second quarter (Q2) of 2022.
This is due to a 4% reduction resulting from the Heritage Brands transaction and the exit from the Heritage Brands Retail business, a 2% reduction from the war in Ukraine, including closures of company stores in Russia, the cessation of wholesale shipments to Russia and Belarus, and a reduction in wholesale shipments to Ukraine.
Overall, direct-to-consumer revenues decreased 5% year-on-year, wholesale revenues decreased 11%, and total digital revenues decreased 7%.
Particularly, Tommy Hilfiger revenues declined 5% year-on-year to $1.07bn (£93m), with international revenues decreasing 9%. However, North America revenues increased 6%.
Calvin Klein revenues also decreased 1% year-on-year to $910m (£784.9m). International revenues declined 2% and Calvin Klein North America revenues decreased 1%.
Additionally, Heritage Brands’ revenues decreased 44%. Looking ahead, PVH is focusing on upgrading supply chain capabilities to become more demand-driven, and will simplify how it works, resulting in “substantial” cost efficiencies.
Stefan Larsson, CEO, said: “We continued to execute very well in Europe and Asia, where countries not currently impacted by Covid are performing significantly above pre-pandemic levels, while in North America we continue to be impacted by ongoing supply chain pressures.”
“In light of continued macroeconomic headwinds, we are intensifying our focus on driving growth through the disciplined execution of our brand-focused, direct-to-consumer and digitally-led PVH+ Plan, connecting Calvin Klein and Tommy Hilfiger closer to the consumer than ever before.”
