The gross margin contracted 240 bps to 55.9% due to higher costs and increased promotions, which more than offset gains from price increases and a favorable shift in regional and channel mix.Īdjusted selling, general and administrative expenses decreased 2% year over year to $1,186.6 million. The company's gross profit amounted to $1,390.5 million, down 1.8% year over year. Revenues in the digital channel declined roughly 8% in the quarter under review. However, the company continues to witness negative impacts from the COVID-19 pandemic in China.ĭirect-to-consumer revenues grew 4% year over year in the quarter, whereas Wholesale revenues remained flat year over year. On the flip side, the company witnessed growth across Europe and North America, particularly in the direct-to-consumer business, along with continued strength in its Tommy Hilfiger and Calvin Klein brand businesses. Also, the top line surpassed the Zacks Consensus Estimate of $2,336 million and our estimate of $2,324 million. This is mainly due to the impacts of the Ukraine war, such as Russia store closures, the cessation of wholesale shipments to Russia and Belarus, and a reduction in wholesale shipments to Ukraine. In the fiscal fourth quarter, revenues rose 2% year over year (up 8% on a constant currency or cc basis) to $2,489 million. On a GAAP basis, the company reported earnings of $2.18 per share compared with $5.53 in the prior-year quarter. However, the bottom line beat the Zacks Consensus Estimate of $1.64 and our estimate of $1.63. PVH Corp reported adjusted earnings of $2.38 per share, down 16.2% from the year-ago quarter's $2.84. Image Source: Zacks Investment Research Q4 Highlights In the past three months, this Zacks Rank #2 (Buy) stock has gained 3.9% against the industry's decline of 1.9%.
Per PVH, the business momentum continues to remain positive in 2023. Management has been on track with its PVH+ Plan, which is likely to result in substantial cost efficiencies and better productivity. Despite macroeconomic challenges, results gained from the continued momentum in its core brands - Calvin Klein and Tommy Hilfiger - along with pricing actions and strong consumer engagement. Shares of PVH Corporation ( PVH Quick Quote PVH - Free Report) jumped more than 10% after market close on Mar 27, following the fourth-quarter fiscal 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate.
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