The US clothing group PVH Corporation had to accept loss and result in the financial year 2024/25. In the fourth quarter, however, the parent company of the brands Calvin Klein and Tommy Hilfiger could exceed the market expectations. Due to the latest reform measures, the company said that the result was expected to improve the result in the current financial year on Monday.
In the final quarter, which ended on February 2, the group sales were $ 2.37 billion (2.19 billion euros). In doing so, he missed the corresponding level of the previous year by five percent (currency -adjusted -2 percent). In advance, the company predicted a decline of six to seven percent.
The designated net profit amounted to $ 157.2 million (145.5 million euros), which corresponded to a decline of 42 percent compared to the previous year. Adjusted for special effects, the surplus shrank by 18 percent to $ 181.4 million and was also above expectations.
PVH’s annual turnover drops by six percent
In the entire financial year 2024/25, PVH generated sales of $ 8.65 billion. Compared to the previous year, he fell by six percent (disabilities -5 percent).
The revenues of the Tommy Hilfiger brand decreased by five percent (currency -adjusted -4 percent) to $ 4.59 billion. At Calvin Klein, sales fell by one percent to $ 3.87 billion. Adjusted to change course changes, he remained almost constant.
In the Heritage Brands segment, in which the other group brands are led, sales shrank by 57 percent to $ 206.5 million. According to the company, 45 percentage points of the decline resulted from the sale of Warner, True & Co. and Olga, which was sold in autumn 2023.
Negative special effects burden the profit
Despite significant cost reductions, the designated net profit fell by almost ten percent to $ 598.5 million. Adjusted for special effects, however, it increased by one percent to $ 665.0 million. The adjusted profit per share was $ 11.74 and thus above the forecast area of $ 11.55 to $ 11.70.
Chief Financial Officer (CFO) ZAC Coughhlin was satisfied with the figures submitted. In the 2024/25 financial year, the group “achieved its goals formulated at the beginning of the year despite an unexpectedly difficult macroeconomic environment,” he emphasized in a statement. The company further advanced the implementation of its reform plan “PVH+” and thereby increased cost efficiency.
The group expects an improvement in results in the current year
For the current financial year 2025/26, management now expects the fact that sales remain at least constant or increases slightly. The profit per share adjusted for special effects is expected to increase to $ 12.75 to $ 12.75.
At the same time, the group announced how to buy its own shares with a total value of $ 500 million in the past year.