The US clothing group PVH Corporation closed the third quarter of the 2023/24 financial year with an unexpectedly high profit. The parent company of the Calvin Klein and Tommy Hilfiger brands then raised its earnings forecasts on Wednesday evening.
In the three months before October 29, group sales reached $2.36 billion (€2.16 billion), exceeding the level of the same quarter of the previous year by 3.6 percent. Adjusted for exchange rate changes, revenue increased by 0.7 percent.
Tommy Hilfiger achieved an increase of 3.7 percent (currency-adjusted +0.1 percent) to 1.21 billion US dollars, at Calvin Klein sales increased by 5.8 percent (currency-adjusted +3.3 percent) to 1.02 billion US dollars. In the Heritage Brands segment, which includes the other Group brands, revenue fell by 11.3 percent to $130.8 million.
The clothing group is lowering its sales target for the current financial year
The bottom line was a net profit of 161.6 million US dollars (147.9 million euros), after the company had to report a loss of 186.7 million US dollars in the same period of the previous year. At that time, however, value adjustments amounting to $417.1 million had a negative impact on earnings. Adjusted for all special effects, quarterly net income rose by 4.1 percent to $176.4 million, well above expectations.
In view of the surprisingly strong development, management raised its earnings forecast for the entire financial year. It now expects earnings per share of about $9.75. Previously, $9.60 was promised.
However, the sales target was revised downwards, which was not least due to the recent sale of the lingerie brands Warners, Olga and True & Co. A sales increase of one percent is now expected for 2023/24, after growth of three to four percent had previously been targeted.