PVH Corp. Reports Q3 Revenue Growth, Sets Sights on Brand Enhancement by 2025
PVH Corp., the parent company of iconic brands like Tommy Hilfiger and Calvin Klein, has reported a 4% increase in revenue to $2.36 billion in the third quarter. The company also announced strategic moves, including leadership changes and divestments, as it aims to boost brand loyalty and desirability by 2025.
PVH's direct-to-consumer (DTC) revenue grew by 8% in the quarter, while wholesale revenue saw a modest 1% increase. Tommy Hilfiger, a key driver of growth, witnessed a 6% rise in North America revenue and a 3% increase internationally. Meanwhile, Calvin Klein's international revenue surged by 10%, offsetting a 1% decline in North America.
The company's inventory decreased by 19% compared to the same period last year. Despite this, PVH lowered its full-year revenue outlook to 1% growth, reflecting ongoing challenges in the retail sector.
In a strategic shift, PVH sold its Heritage Brands intimate apparel business for $160 million. Earlier this year, HanesBrands sold its real estate brands Warners, Olga, and True & Co for $75 million. These moves suggest a focus on core brands and a streamlined portfolio.
PVH also announced leadership changes, appointing Lea Rytz Goldman as the new global brand president of Tommy Hilfiger. This appointment comes as the company plans to enhance consumer loyalty and the desirability of its brands by 2025.
PVH Corp.'s third-quarter results reflect a mixed bag of growth and challenges. While revenue increased and key brands like Tommy Hilfiger and Calvin Klein showed strength, the company has revised its full-year outlook downward. PVH's strategic moves, including divestments and leadership changes, signal a focus on core brands and enhancing their appeal to consumers.
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