Mon, Sep 9, 5:38 PM (102 days ago)
In the second quarter of 2024, PVH Corp. reported total revenue of $2,074.3 million, a decline of 6% compared to the same period in 2023, mainly due to the divestiture of its Heritage Brands intimates segment and adverse foreign currency impacts. The Tommy Hilfiger and Calvin Klein segments experienced mixed results, with international revenues declining due to strategic reductions in lower-margin sales, particularly in Europe. Gross profit improved to 60.1% of total revenue, up from 57.6%, driven by lower product costs and a favorable shift in revenue mix towards direct-to-consumer channels. Operating expenses (SG&A) were $1,083.3 million, or 52.2% of revenue, reflecting a rise in costs associated with the ongoing Growth Driver 5 Actions initiative aimed at efficiency improvements. Net income rose significantly to $158 million, with a favorable tax rate of -2.1% primarily due to benefits from tax settlements. Cash flow from operations increased to $226 million, bolstered by improved earnings. The company ended the quarter with $610 million in cash and significant liquidity available. Future operations may be impacted by ongoing inflationary pressures and geopolitical uncertainties, but overall outlook remains cautiously optimistic with expected revenue declines of 6-7% for the full year.