- First quarter
- Revenue: Decreased 10% to $1.952 billion compared to the prior
year period (decreased 9% on a constant currency basis) and
exceeded guidance of a decrease of approximately 11% (decrease of
approximately 10% on a constant currency basis)
- EPS:
- GAAP basis: $2.59 exceeded guidance of approximately $2.15
- Non-GAAP basis: $2.45 exceeded guidance of approximately $2.15
(there were no non-GAAP exclusions in the guidance)
- Full year outlook
- Revenue: Reaffirms projected decrease of 6% to 7% (decrease 6%
to 7% on a constant currency basis)
- Operating margin: Reaffirms outlook of approximately flat
compared to 10.1% in 2023
- EPS:
- GAAP basis: Raising to $11.15 to $11.40 compared to $10.75 to
$11.00 previously
- Non-GAAP basis: Raising to $11.00 to $11.25 compared to $10.75
to $11.00 previously (there were no non-GAAP exclusions in the
guidance)
PVH Corp. [NYSE: PVH] today reported its 2024 first quarter
results and updated its full year outlook.
Stefan Larsson, Chief Executive Officer, commented, “We
delivered on our revenue expectations, led by growth in our
direct-to-consumer business, and beat our earnings guidance for the
first quarter. We further strengthened our brand positioning and
pricing power in the marketplace, and as planned we generated
growth for Calvin Klein and Tommy Hilfiger combined in both North
America and Asia Pacific in constant currency, while successfully
driving strategic quality of sales initiatives in Europe.”
Mr. Larsson added, “Although we are still early in our journey
to build Calvin Klein and Tommy Hilfiger into the most desirable
lifestyle brands in the world, we are already creating some of the
highest consumer engagement in the history of our brands. We also
continue to gain traction in all five PVH+ Plan growth drivers,
with strong growth in key product categories and hero products with
significant gross margin expansion. This is fueled by the build-out
of our demand-driven supply chain and targeted growth investments,
complemented by cost efficiencies from simplifying how we
work.”
Zac Coughlin, Chief Financial Officer, said, “We drove solid
first quarter results, which included strong gross margin expansion
and double-digit EPS growth as we continue to manage our business
prudently. For the full year, we are reaffirming our revenue
outlook and raising our EPS guidance despite the continued tough
macroeconomic backdrop globally, reflecting our confidence in our
execution of the PVH+ Plan. We are on track to generate significant
cash flow for the year and deployed approximately $200 million in
the first quarter for share repurchases. This underscores our
commitment to delivering shareholder returns, as well as the
conviction we have in our ability to drive sustainable, long-term,
profitable growth.”
Non-GAAP Amounts: Amounts stated to be on a non-GAAP
basis exclude the items that are defined or described in greater
detail near the end of this release under the heading “Non-GAAP
Exclusions.” Amounts stated on a constant currency basis also are
deemed to be on a non-GAAP basis. Reconciliations of amounts on a
GAAP basis to amounts on a non-GAAP basis are presented after the
Non-GAAP Exclusions section and identify and quantify all excluded
items.
First Quarter Review:
- Revenue decreased 10% compared to the prior year period
(decreased 9% on a constant currency basis), including a 3% decline
due to the sale of the Heritage Brands women’s intimates business
in November 2023. Overall revenue in the Company’s international
businesses decreased 9% over the prior year period as solid growth
in the Asia Pacific region in local currency was more than offset
by a revenue decline in Europe, including a planned strategic
reduction to drive overall higher quality of sales in the region.
In North America, revenue in the Tommy Hilfiger and Calvin Klein
businesses combined was up 3% compared to the prior year period,
with modest growth in both the direct-to-consumer and wholesale
businesses, including the favorable impact of a shift in the timing
of wholesale shipments from the second quarter into the first
quarter.
- Direct-to-consumer revenue increased 1% compared to the
prior year period (increased 3% on a constant currency basis).
Revenue in the Company’s owned and operated stores increased 3%
compared to the prior year period (increased 5% on a constant
currency basis), with growth in all regions, while revenue in the
Company’s owned and operated digital commerce business declined 6%
compared to the prior year period (5% decline on a constant
currency basis), with growth in the North America and Asia Pacific
regions more than offset by a planned reduction in Europe.
- Wholesale revenue decreased 17% compared to the prior
year period (decreased 17% on a constant currency basis), primarily
due to a 6% reduction related to the sale of the Heritage Brands
women's intimates business and the planned strategic reduction in
revenue in Europe to drive overall higher quality of sales in the
region. In addition, wholesalers continue to take a cautious
approach, particularly in Europe.
- Gross margin increased 350 basis points to 61.4%
compared to 57.9% in the prior year period. The significant
increase reflects benefits from a favorable shift in channel mix, a
reduction in sales to lower margin wholesale accounts, and lower
product costs.
- Inventory decreased 22% compared to the prior year
period, in line with expectations, as the Company continues to
proactively manage its inventory levels.
First Quarter Consolidated Results:
- Revenue of $1.952 billion decreased 10% compared to
$2.158 billion in the prior year period (decreased 9% on a constant
currency basis), including a 3% decline related to the sale of the
Heritage Brands women’s intimates business.
- Tommy Hilfiger revenue decreased 10% compared to the
prior year period (decreased 9% on a constant currency basis).
- Tommy Hilfiger International revenue decreased 14%
(decreased 13% on a constant currency basis) as the revenue decline
in Europe discussed above weighs more heavily on the Tommy Hilfiger
business.
- Tommy Hilfiger North America revenue increased 2%.
- Calvin Klein revenue was flat compared to the prior year
period (increased 1% on a constant currency basis).
- Calvin Klein International revenue decreased 2% (flat on
a constant currency basis).
- Calvin Klein North America revenue increased 4%.
- Heritage Brands revenue decreased 65% compared to the
prior year period, which included a 47% decrease resulting from the
sale of the Heritage Brands women's intimates business.
- Earnings before interest and taxes (“EBIT”) was $205
million on a GAAP basis and $195 million on a non-GAAP basis,
inclusive of a $2 million negative impact due to foreign currency
translation, compared to $199 million in the prior year period.
EBIT on a GAAP basis for the first quarter of 2024 included a
pre-tax gain of $10 million described under the heading “Non-GAAP
Exclusions” later in this release. EBIT on a non-GAAP basis
excludes this amount. EBIT on a non-GAAP basis declined slightly
compared to the prior year period as the gross margin improvement
discussed above nearly offset the revenue decline in the
quarter.
- Earnings per share (“EPS”)
- GAAP basis: $2.59 compared to $2.14 in the prior year
period.
- Non-GAAP basis: $2.45 compared to $2.14 in the prior
year period (there were no non-GAAP exclusions in the prior year
period).
EPS on both a GAAP and a non-GAAP basis for
the first quarter of 2024 includes the negative impact of $0.04 per
share related to foreign currency translation.
EPS on a GAAP basis for the first quarter of
2024 also included the pre-tax gain of $10 million described under
the heading “Non-GAAP Exclusions” later in this release. EPS on a
non-GAAP basis for the first quarter of 2024 excluded this
amount.
- Interest expense decreased to $18 million from $22
million in the prior year period.
- Effective tax rate was 19.2% on a GAAP basis and 19.4%
on a non-GAAP basis as compared to 23.1% in the prior year
period.
Stock Repurchase Program: Delivering on its commitment
under the PVH+ Plan to return excess cash to stockholders, the
Company repurchased 1.8 million shares of its common stock for $200
million during the first quarter of 2024. The Company currently
expects to make common stock repurchases under the stock repurchase
program of approximately $400 million for the full year 2024.
2024 Outlook: Full Year 2024
Guidance
- Revenue: Reaffirming projected decrease of 6% to 7% as
compared to 2023 (decrease 6% to 7% on a constant currency basis),
inclusive of a 2% reduction related to the sale of the Heritage
Brands women’s intimates business and a 1% reduction from the 53rd
week in 2023.
- Operating margin: Reaffirming outlook of
approximately flat compared to 10.1% in 2023.
- EPS
- GAAP basis: Projected to be in a range of $11.15 to
$11.40 compared to $10.76 in 2023. Previous guidance was a range of
$10.75 to $11.00.
- Non-GAAP basis: Projected to be in a range of $11.00 to
$11.25 compared to $10.68 in 2023. Previous guidance was a range of
$10.75 to $11.00 (there were no non-GAAP exclusions in the
guidance).
The 2024 EPS projections include the
estimated negative impact of approximately $0.10 per share related
to foreign currency translation.
EPS on a GAAP basis for these periods also
include the amounts described under the heading “Non-GAAP
Exclusions” later in this release. EPS on a non-GAAP basis exclude
these amounts.
- Interest expense is projected to decrease to
approximately $75 million as compared to $88 million in 2023,
primarily due to repayment of the $100 million 7 3/4% debentures in
2023 and an increase in interest income. Previous guidance was
relatively flat to 2023.
- Effective tax rate is projected to be approximately 20%.
Previous guidance was approximately 21%.
Second Quarter 2024 Guidance
- Revenue is projected to decrease 6% to 7% as compared to
the second quarter of 2023 (decrease 5% to 6% on a constant
currency basis), inclusive of a reduction of 3% related to the sale
of the Heritage Brands women's intimates business.
- EPS is projected to be approximately $2.25 compared to
$1.50 on a GAAP basis and $1.98 on a non-GAAP basis in the prior
year period. The second quarter 2024 EPS projection includes the
estimated negative impact of approximately $0.05 per share related
to foreign currency translation. EPS on a GAAP basis for the second
quarter of 2023 included the amount described under the heading
“Non-GAAP Exclusions” later in this release. EPS on a non-GAAP
basis for the second quarter of 2023 excluded this amount.
- Interest expense is projected to decrease to
approximately $20 million compared to $24 million in the second
quarter of 2023.
- Effective tax rate is projected to be approximately
20%.
Please see the section entitled “Full Year and Quarterly
Reconciliations of GAAP to Non-GAAP Amounts” at the end of this
release for further detail and reconciliations of GAAP to non-GAAP
amounts discussed in this section.
Non-GAAP Exclusions: The discussions in this release that
refer to non-GAAP amounts exclude the following:
- Pre-tax gain of $10 million recorded in the first quarter of
2024 in connection with the Company’s sale of the Heritage Brands
women’s intimates business.
- Pre-tax gain of $46 million recorded in the fourth quarter of
2023 related to the recognized actuarial gain on retirement
plans.
- Pre-tax net gain of $13 million recorded in the fourth quarter
of 2023 in connection with the sale of the Company’s Heritage
Brands women's intimates business, which includes a gain on the
sale, less costs to sell, and severance and other termination
benefits associated with the transaction.
- Pre-tax restructuring costs of $61 million incurred in 2023
consisting principally of severance related to actions taken in the
second and third quarters of 2023 under the plans initially
announced in August 2022 to reduce people costs in the Company’s
global offices by approximately 10% by the end of 2023, of which
$39 million was incurred in the second quarter, $19 million was
incurred in the third quarter and $4 million was incurred in the
fourth quarter.
- Estimated tax effects associated with the above pre-tax items,
which are based on the Company’s assessment of deductibility. In
making this assessment, the Company evaluated each item that it had
identified above as a non-GAAP exclusion to determine if such item
was (i) taxable or tax deductible, in which case the tax effect was
taken at the applicable income tax rate in the local jurisdiction,
or (ii) non-taxable or non-deductible, in which case the Company
assumed no tax effect.
The Company presents constant currency revenue information,
which is a non-GAAP financial measure, because it is a global
company that transacts business in multiple currencies and reports
financial information in U.S. dollars. Foreign currency exchange
rate fluctuations affect the amounts reported by the Company in
U.S. dollars with respect to its foreign revenues and can have a
significant impact on the Company’s reported revenues. The Company
calculates constant currency revenue information by translating its
foreign revenues for the relevant period into U.S. dollars at the
average exchange rates in effect during the comparable prior year
period (rather than at the actual exchange rates in effect during
the relevant period).
The Company presents non-GAAP financial measures, including
constant currency revenue information, as a supplement to its GAAP
results. The Company believes presenting non-GAAP financial
measures provides useful information to investors, as it provides
information to assess how its businesses performed excluding the
effects of non-recurring and non-operational amounts and the
effects of changes in foreign currency exchange rates, as
applicable, and (i) facilitates comparing the results being
reported against past and future results by eliminating amounts
that it believes are not comparable between periods and (ii)
assists investors in evaluating the effectiveness of the Company’s
operations and underlying business trends in a manner that is
consistent with management’s evaluation of business performance.
The Company believes that investors often look at ongoing
operations of an enterprise as a measure of assessing performance.
The Company uses its results excluding these amounts to evaluate
its operating performance and to discuss its business with
investment institutions, the Company’s Board of Directors and
others. The Company’s results excluding non-recurring and
non-operational amounts are also the basis for certain incentive
compensation calculations. Non-GAAP financial measures should be
viewed in addition to, and not in lieu of or as superior to, the
Company’s operating performance calculated in accordance with GAAP.
The non-GAAP financial measures presented may not be comparable to
similarly described measures reported by other companies.
Please see tables 1 through 4 and the sections entitled
“Reconciliations of Constant Currency Revenue” and “Full Year and
Quarterly Reconciliations of GAAP to Non-GAAP Amounts” later in
this release for reconciliations of GAAP to non-GAAP amounts.
Conference Call Information: The Company will host a
conference call to discuss its first quarter earnings release on
Wednesday, June 5 at 9:00 a.m. EDT. Please log on to the
Company’s website at www.PVH.com and go to the Events page
in the Investors section to listen to the live webcast of the
conference call. The webcast will be available for replay for one
year after it is held. Please log on to www.PVH.com as described
above to listen to the replay. The conference call and webcast
consist of copyrighted material. They may not be re-recorded,
reproduced, re-transmitted, rebroadcast or otherwise used without
the Company’s express written permission. Your participation
represents your consent to these terms and conditions, which are
governed by New York law.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Forward-looking statements in this press
release and made during the conference call/webcast, including,
without limitation, statements relating to the Company’s future
revenue, earnings, plans, strategies, objectives, expectations and
intentions are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be
predicted with accuracy, and some of which might not be
anticipated, including, without limitation, (i) the Company’s
plans, strategies, objectives, expectations and intentions are
subject to change at any time at the discretion of the Company;
(ii) the Company’s ability to realize anticipated benefits and
savings from divestitures, restructurings and similar plans, such
as the headcount cost reduction initiative announced in August
2022, the 2021 sale of assets of, and exit from, its Heritage
Brands menswear and retail businesses, and the November 2023 sale
of the Heritage Brands women’s intimate apparel business to focus
on its Calvin Klein and Tommy Hilfiger businesses; (iii) the
ability to realize the intended benefits from the acquisition of
licensees or the reversion of licensed rights (such as the
announced, in-process plan to bring in-house most of the product
categories that are or had been licensed to G-III Apparel Group,
Ltd. upon the expirations over time of the underlying license
agreements) and avoid any disruptions in the businesses during the
transition from operation by the licensee to the direct operation
by us; (iv) the Company has significant levels of outstanding debt
and borrowing capacity and uses a significant portion of its cash
flows to service its indebtedness, as a result of which the Company
might not have sufficient funds to operate its businesses in the
manner it intends or has operated in the past; (v) the levels of
sales of the Company’s apparel, footwear and related products, both
to its wholesale customers and in its retail stores and its
directly operated digital commerce sites, the levels of sales of
the Company’s licensees at wholesale and retail, and the extent of
discounts and promotional pricing in which the Company and its
licensees and other business partners are required to engage, all
of which can be affected by weather conditions, changes in the
economy (including inflationary pressures like those currently
being experienced globally), fuel prices, reductions in travel,
fashion trends, consolidations, repositionings and bankruptcies in
the retail industries, consumer sentiment and other factors; (vi)
the Company’s ability to manage its growth and inventory; (vii)
quota restrictions, the imposition of safeguard controls and the
imposition of new or increased duties or tariffs on goods from the
countries where the Company or its licensees produce goods under
its trademarks, any of which, among other things, could limit the
ability to produce products in cost-effective countries, or in
countries that have the labor and technical expertise needed, or
require the Company to absorb costs or try to pass costs onto
consumers, which could materially impact the Company’s revenue and
profitability; (viii) the availability and cost of raw materials;
(ix) the Company’s ability to adjust timely to changes in trade
regulations and the migration and development of manufacturers
(which can affect where the Company’s products can best be
produced); (x) the regulation or prohibition of the transaction of
business with specific individuals or entities and their affiliates
or goods manufactured in (or containing raw materials or components
from) certain regions, such as the listing of a person or entity as
a Specially Designated National or Blocked Person by the U.S.
Department of the Treasury’s Office of Foreign Assets Control and
the issuance of Withhold Release Orders by the U.S. Customs and
Border Protection; (xi) changes in available factory and shipping
capacity, wage and shipping cost escalation, and store closures in
any of the countries where the Company’s or its licensees’ or
wholesale customers’ or other business partners’ stores are located
or products are sold or produced or are planned to be sold or
produced, as a result of civil conflict, war or terrorist acts, the
threat of any of the foregoing, or political or labor instability,
such as the current war in Ukraine that led to the Company’s exit
from its retail business in Russia and the cessation of its
wholesale operations in Russia and Belarus, and the temporary
cessation of business by many of its business partners in Ukraine;
(xii) disease epidemics and health-related concerns, such as the
recent COVID-19 pandemic, which could result in (and, in the case
of the COVID-19 pandemic, did result in some of the following)
supply-chain disruptions due to closed factories, reduced
workforces and production capacity, shipping delays, container and
trucker shortages, port congestion and other logistics problems,
closed stores, and reduced consumer traffic and purchasing, or
governments implement mandatory business closures, travel
restrictions or the like, and market or other changes that could
result in shortages of inventory available to be delivered to the
Company’s stores and customers, order cancellations and lost sales,
as well as in noncash impairments of the Company’s goodwill and
other intangible assets, operating lease right-of-use assets, and
property, plant and equipment; (xiii) actions taken towards
sustainability and social and environmental responsibility as part
of the Company’s sustainability and social and environmental
strategy may not be achieved or may be perceived to be falsely
claimed, which could diminish consumer trust in the Company’s
brands, as well as the Company’s brands’ values; (xiv) the failure
of the Company’s licensees to market successfully licensed products
or to preserve the value of the Company’s brands, or their misuse
of the Company’s brands; (xv) significant fluctuations of the U.S.
dollar against foreign currencies in which the Company transacts
significant levels of business; (xvi) the Company’s retirement plan
expenses recorded throughout the year are calculated using
actuarial valuations that incorporate assumptions and estimates
about financial market, economic and demographic conditions, and
differences between estimated and actual results give rise to gains
and losses, which can be significant, that are recorded immediately
in earnings, generally in the fourth quarter of the year; (xvii)
the impact of new and revised tax legislation and regulations; and
(xviii) other risks and uncertainties indicated from time to time
in the Company’s filings with the Securities and Exchange
Commission (“SEC”).
This press release includes, and the conference call/webcast
will include, certain non-GAAP financial measures, as defined under
SEC rules. Reconciliations of these measures are included in the
financial information following this Safe Harbor Statement, as well
as in the Company’s Current Report on Form 8-K furnished to the SEC
in connection with this earnings release, which is available on the
Company’s website at www.PVH.com and on the SEC’s website at
www.sec.gov.
The Company does not undertake any obligation to update publicly
any forward-looking statement, including, without limitation, any
estimate regarding revenue or earnings, whether as a result of the
receipt of new information, future events or otherwise.
PVH CORP. Consolidated GAAP Statements of
Operations (In millions, except per share data)
Quarter Ended
5/5/24
4/30/23
Net sales
$
1,850.2
$
2,051.1
Royalty revenue
81.2
84.7
Advertising and other revenue
20.5
22.1
Total revenue
$
1,951.9
$
2,157.9
Gross profit
$
1,198.7
$
1,250.3
Selling, general and administrative
expenses
1,017.3
1,064.0
Non-service related pension and
postretirement income
0.5
0.6
Other gain
10.0
—
Equity in net income of unconsolidated
affiliates
13.2
11.9
Earnings before interest and taxes
205.1
198.8
Interest expense, net
17.7
22.0
Pre-tax income
187.4
176.8
Income tax expense
36.0
40.8
Net income
$
151.4
$
136.0
Diluted net income per common share
(1)
$
2.59
$
2.14
Quarter Ended
5/5/24
4/30/23
Depreciation and amortization expense
$
72.1
$
72.3
Please see following pages for information related to non-GAAP
measures discussed in this release.
(1)
Please see Note A in Notes to Consolidated
GAAP Statements of Operations for the reconciliation of GAAP
diluted net income per common share to diluted net income per
common share on a non-GAAP basis.
PVH CORP. Non-GAAP Measures
The Company believes it is useful to investors to present its
results for the period ended May 5, 2024 on a non-GAAP basis by
excluding the pre-tax gain recorded in the first quarter of 2024 in
connection with the sale of the Company’s Heritage Brands women's
intimates business (the "Heritage Brands intimates transaction")
and the associated tax effect. The Company excludes these amounts
because it deems them to be non-recurring or non-operational and
believes that their exclusion (i) facilitates comparing the results
being reported against past and future results by eliminating
amounts that it believes are not comparable between periods,
thereby permitting management to evaluate performance and investors
to make decisions based on the ongoing operations of the Company,
and (ii) assists investors in evaluating the effectiveness of the
Company’s operations and underlying business trends in a manner
that is consistent with management’s evaluation of business
performance. The Company believes that investors often look at
ongoing operations of an enterprise as a measure of assessing
performance. The Company uses its results excluding these amounts
to evaluate its operating performance and to discuss its business
with investment institutions, the Company’s Board of Directors and
others. The Company’s results excluding the items described above
are also the basis for certain incentive compensation calculations.
The non-GAAP measures should be viewed in addition to, and not in
lieu of or superior to, the Company’s operating performance
measures calculated in accordance with GAAP. The information
presented on a non-GAAP basis may not be comparable to similarly
titled measures reported by other companies.
The following table presents the non-GAAP measures that are
discussed in this release. Please see Tables 1 through 4 for the
reconciliations of the GAAP amounts to amounts on a non-GAAP
basis.
Quarter Ended
5/5/24
Non-GAAP Measures
Other gain (1)
$
—
Earnings before interest and taxes (2)
195.1
Income tax expense (3)
34.5
Net income (4)
142.9
Diluted net income per common share
(5)
$
2.45
(1)
Please see Table 3 for the reconciliation
of GAAP other gain to other gain on a non-GAAP basis.
(2)
Please see Table 2 for the reconciliation
of GAAP earnings before interest and taxes to earnings before
interest and taxes on a non-GAAP basis.
(3)
Please see Table 4 for the reconciliation
of GAAP income tax expense to income tax expense on a non-GAAP
basis and an explanation of the calculation of the tax effect
associated with the pre-tax item identified as a non-GAAP
exclusion.
(4)
Please see Table 1 for the reconciliation
of GAAP net income to net income on a non-GAAP basis.
(5)
Please see Note A in Notes to Consolidated
GAAP Statements of Operations for the reconciliation of GAAP
diluted net income per common share to diluted net income per
common share on a non-GAAP basis.
PVH CORP. Reconciliations of GAAP to Non-GAAP
Amounts (In millions, except per share data)
Table 1 -
Reconciliation of GAAP net income to net income on a non-GAAP
basis
Quarter Ended
5/5/24
Net income
$
151.4
Diluted net income per common share
(1)
$
2.59
Pre-tax item excluded:
Gain in connection with the Heritage
Brands intimates transaction (recorded in other gain)
(10.0
)
Tax effect of the pre-tax item above
(2)
1.5
Net income on a non-GAAP basis
$
142.9
Diluted net income per common share on a
non-GAAP basis (1)
$
2.45
(1)
Please see Note A in Notes to the
Consolidated GAAP Statements of Operations for the reconciliation
of GAAP diluted net income per common share to diluted net income
per common share on a non-GAAP basis.
(2)
Please see Table 4 for an explanation of
the calculation of the tax effect of the above item.
Table 2 - Reconciliation of GAAP earnings
before interest and taxes to earnings before interest and taxes on
a non-GAAP basis
Quarter Ended
5/5/24
Earnings before interest and taxes
$
205.1
Item excluded:
Gain in connection with the Heritage
Brands intimates transaction (recorded in other gain)
(10.0
)
Earnings before interest and taxes on a
non-GAAP basis
$
195.1
Table 3 -
Reconciliation of GAAP other gain to other gain on a non-GAAP
basis
Quarter Ended
5/5/24
Other gain
$
10.0
Item excluded:
Gain in connection with the Heritage
Brands intimates transaction
(10.0
)
Other gain on a non-GAAP basis
$
—
PVH CORP. Reconciliations of GAAP to Non-GAAP Amounts
(continued) (In millions, except per share data)
Table 4 -
Reconciliation of GAAP income tax expense to income tax expense on
a non-GAAP basis
Quarter Ended
5/5/24
Income tax expense
$
36.0
Item excluded:
Tax effect of pre-tax item identified as
non-GAAP exclusion (1)
(1.5
)
Income tax expense on a non-GAAP basis
$
34.5
(1)
The estimated tax effects associated with
the Company’s exclusions on a non-GAAP basis are based on the
Company’s assessment of deductibility. In making this assessment,
the Company evaluates each pre-tax item that it has identified as a
non-GAAP exclusion to determine if such item is (i) taxable or tax
deductible, in which case the tax effect is taken at the applicable
income tax rate in the local jurisdiction, or (ii) non-taxable or
non-deductible, in which case the Company assumes no tax
effect.
PVH CORP. Notes to Consolidated GAAP Statement of
Operations (In millions, except per share data)
A. The Company computed its diluted net income per common share
as follows:
Quarter Ended
Quarter Ended
5/5/24
4/30/23
GAAP
Non-GAAP
GAAP
Results
Adjustment (1)
Results
Results
Net income
$
151.4
$
8.5
$
142.9
$
136.0
Weighted average common shares
57.5
57.5
62.7
Weighted average dilutive securities
0.9
0.9
0.8
Total shares
58.4
58.4
63.5
Diluted net income per common share
$
2.59
$
2.45
$
2.14
(1)
Represents the impact on net income in the
quarter ended May 5, 2024 from the elimination of the pre-tax gain
recorded in connection with the Heritage Brands intimates
transaction and the associated tax effect. Please see Table 1 for
the reconciliation of GAAP net income to net income on a non-GAAP
basis.
PVH CORP. Consolidated Balance Sheets (In
millions)
5/5/24
4/30/23
ASSETS
Current Assets:
Cash and Cash Equivalents
$
376.2
$
373.8
Receivables
835.0
928.3
Inventories
1,346.8
1,718.1
Other
353.9
333.0
Total Current Assets
2,911.9
3,353.2
Property, Plant and Equipment
824.7
885.7
Operating Lease Right-of-Use Assets
1,257.2
1,282.1
Goodwill and Other Intangible Assets
5,404.8
5,588.7
Other Assets
390.1
381.5
TOTAL ASSETS
$
10,788.7
$
11,491.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable and Accrued Expenses
$
1,561.3
$
1,924.7
Current Portion of Operating Lease
Liabilities
304.2
342.2
Short-Term Borrowings
—
17.3
Current Portion of Long-Term Debt
11.9
112.0
Other Liabilities
605.2
652.6
Long-Term Portion of Operating Lease
Liabilities
1,101.0
1,123.0
Long-Term Debt
2,145.9
2,193.0
Stockholders’ Equity
5,059.2
5,126.4
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
10,788.7
$
11,491.2
Note: Year over year balances are impacted
by changes in foreign currency exchange rates.
PVH CORP. Segment Data (In millions)
REVENUE BY
SEGMENT
Quarter Ended
Quarter Ended
5/5/24
4/30/23
Tommy Hilfiger North
America
Net sales
$
271.4
$
266.7
Royalty revenue
20.7
20.3
Advertising and other revenue
4.6
4.5
Total
296.7
291.5
Tommy Hilfiger
International
Net sales
700.0
812.8
Royalty revenue
13.3
15.7
Advertising and other revenue
3.3
4.3
Total
716.6
832.8
Total Tommy
Hilfiger
Net sales
971.4
1,079.5
Royalty revenue
34.0
36.0
Advertising and other revenue
7.9
8.8
Total
1,013.3
1,124.3
Calvin Klein North
America
Net sales
239.7
227.7
Royalty revenue
35.7
35.7
Advertising and other revenue
9.9
10.9
Total
285.3
274.3
Calvin Klein
International
Net sales
587.4
598.3
Royalty revenue
11.4
12.8
Advertising and other revenue
2.7
2.3
Total
601.5
613.4
Total Calvin
Klein
Net sales
827.1
826.0
Royalty revenue
47.1
48.5
Advertising and other revenue
12.6
13.2
Total
886.8
887.7
Heritage Brands
Wholesale
Net sales
51.7
145.6
Royalty revenue
0.1
0.2
Advertising and other revenue
—
0.1
Total
51.8
145.9
Total
Revenue
Net sales
1,850.2
2,051.1
Royalty revenue
81.2
84.7
Advertising and other revenue
20.5
22.1
Total
$
1,951.9
$
2,157.9
PVH CORP. Segment Data (continued) (In
millions)
EARNINGS BEFORE
INTEREST AND TAXES BY SEGMENT
Quarter Ended
Quarter Ended
5/5/24
4/30/23
Results
Results
Under
Non-GAAP
Under
GAAP
Adjustment (1)
Results
GAAP
Tommy Hilfiger North America
$
24.4
$
24.4
$
2.3
Tommy Hilfiger International
76.4
76.4
126.3
Total Tommy Hilfiger
100.8
100.8
128.6
Calvin Klein North America
36.6
36.6
2.2
Calvin Klein International
96.4
96.4
100.4
Total Calvin Klein
133.0
133.0
102.6
Heritage Brands Wholesale
16.3
$
10.0
6.3
15.0
Corporate
(45.0
)
(45.0
)
(47.4
)
Total earnings before interest and
taxes
$
205.1
$
10.0
$
195.1
$
198.8
(1)
The adjustment for the quarter ended May
5, 2024 represents the elimination of the gain recorded in
connection with the Heritage Brands intimates transaction.
PVH CORP. Reconciliations of Constant Currency
Revenue (In millions)
As a supplement to the Company’s reported operating results, the
Company presents constant currency revenue information, which is a
non-GAAP financial measure. The Company presents results in this
manner because it is a global company that transacts business in
multiple currencies and reports financial information in U.S.
dollars. Foreign currency exchange rate fluctuations affect the
amounts reported by the Company in U.S. dollars with respect to its
foreign revenues. Exchange rate fluctuations can have a significant
impact on reported revenues. The Company believes presenting
constant currency revenue information provides useful information
to investors, as it provides information to assess how its
businesses performed excluding the effects of changes in foreign
currency exchange rates and assists investors in evaluating the
effectiveness of the Company’s operations and underlying business
trends in a manner that is consistent with management’s evaluation
of business performance.
The Company calculates constant currency revenue information by
translating its foreign revenues for the relevant period into U.S.
dollars at the average exchange rates in effect during the
comparable prior year period (rather than at the actual exchange
rates in effect during the relevant period).
Constant currency performance should be viewed in addition to,
and not in lieu of or as superior to, the Company’s operating
performance calculated in accordance with GAAP. The constant
currency revenue information presented may not be comparable to
similarly described measures reported by other companies.
GAAP Revenue
% Change
Quarter Ended
GAAP
Negative Impact of Foreign
Exchange
Constant Currency
5/5/24
4/30/23
Tommy Hilfiger International
$
716.6
$
832.8
(14.0
)%
(1.0
)%
(13.0
)%
Total Tommy Hilfiger
1,013.3
1,124.3
(9.9
)%
(0.7
)%
(9.2
)%
Calvin Klein International
601.5
613.4
(1.9
)%
(1.7
)%
(0.2
)%
Total Calvin Klein
886.8
887.7
(0.1
)%
(1.3
)%
1.2
%
Total Revenue
$
1,951.9
$
2,157.9
(9.5
)%
(0.8
)%
(8.7
)%
Owned and Operated Retail Stores
$
697.5
$
678.1
2.9
%
(1.8
)%
4.7
%
Owned and Operated Digital Commerce
148.4
158.7
(6.5
)%
(1.6
)%
(4.9
)%
Total Direct-to-Consumer
$
845.9
$
836.8
1.1
%
(1.8
)%
2.9
%
Wholesale
$
1,004.3
$
1,214.3
(17.3
)%
(0.4
)%
(16.9
)%
PVH CORP. Full Year and Quarterly Reconciliations of
GAAP to Non-GAAP Amounts
The Company is presenting its 2024 estimated results on a
non-GAAP basis by excluding the pre-tax gain recorded in the first
quarter of 2024 in connection with the Company’s sale of the
Heritage Brands women’s intimates business and the associated tax
effect.
The 2024 estimated results are presented on both a GAAP and
non-GAAP basis. The Company believes presenting these results on a
non-GAAP basis provides useful additional information to investors.
The Company excludes such amounts that it deems to be non-recurring
or non-operational and believes that excluding them (i) facilitates
comparing the results being reported against past and future
results by eliminating amounts that it believes are not comparable
between periods, thereby permitting management to evaluate
performance and investors to make decisions based on the ongoing
operations of the Company, and (ii) assists investors in evaluating
the effectiveness of the Company’s operations and underlying
business trends in a manner that is consistent with management’s
evaluation of business performance. The Company uses its results
excluding these amounts to evaluate its operating performance and
to discuss its business with investment institutions, the Company’s
Board of Directors and others. The Company’s results excluding the
item described above are also the basis for certain incentive
compensation calculations. The non-GAAP measures should be viewed
in addition to, and not in lieu of or superior to, the Company’s
operating performance measures calculated in accordance with GAAP.
The information presented on a non-GAAP basis may not be comparable
to similarly titled measures reported by other companies.
2024 Net Income
Per Common Share Reconciliation
Current Guidance
Full Year
2024
(Estimated)
GAAP net income per common share
$11.15 to $11.40
Estimated per common share impact of item
identified as non-GAAP exclusion
$0.15
Net income per common share on a Non-GAAP
basis
$11.00 to $11.25
The GAAP net income per common share amounts presented in the
above table, as well as the amounts excluded in providing non GAAP
earnings guidance, would be expected to change as a result of (i)
acquisition, divestment or similar transactions or activities, (ii)
the timing and strategy of restructuring and integration
initiatives or other one-time events that the Company engages in or
suffers during the period, (iii) any market or other changes
affecting the Company’s expected actuarial gain or loss on
retirement plans, including the recent volatility in the financial
markets, or (iv) any discrete tax events including changes in tax
rates or tax law and events arising from audits or the resolution
of uncertain tax positions.
Reconciliations
of 2024 Constant Currency Revenue Guidance
Full Year
2024
(Estimated)
Second Quarter
2024
(Estimated)
GAAP revenue decrease
(6)% to (7)%
(6)% to (7)%
Negative impact of foreign exchange
—%
(1)%
Non-GAAP revenue decrease on a constant
currency basis
(6)% to (7)%
(5)% to (6)%
Please refer to the section entitled "Reconciliations of
Constant Currency Revenue on page 15 of this release for a
description of the presentation of constant currency amounts.
PVH CORP. Full Year and Quarterly Reconciliations of
GAAP to Non-GAAP Amounts (continued)
Reconciliations
of GAAP Diluted Net Income Per Common Share to Diluted Net Income
Per Common Share on a Non-GAAP Basis
Full Year 2023
Second Quarter 2023
(Actual)
(Actual)
(In millions, except
per share data)
Results Under GAAP
Adjustments (1)
Non-GAAP Results
Results Under GAAP
Adjustments (2)
Non-GAAP Results
Net income
$
663.6
$
4.7
$
658.9
$
94.2
$
(30.2
)
$
124.4
Total weighted average shares
61.7
61.7
62.7
62.7
Diluted net income per common share
$
10.76
$
10.68
$
1.50
$
1.98
(1)
Represents the impact on net income in the
year ended February 4, 2024 from the elimination of (i) a $46
million recognized actuarial gain on retirement plans in the fourth
quarter of 2023; (ii) the $15 million gain recorded in connection
with the Heritage Brands intimates transaction; (iii) $2 million of
costs related to the Heritage Brands intimates transaction; (iv)
$61 million of restructuring costs related to actions taken under
the plans announced in August 2022 to reduce people costs in the
Company’s global offices by approximately 10% by the end of 2023
(the “2022 cost savings initiative”); and (v) a $7 million tax
benefit associated with the foregoing pre-tax items.
(2)
Represents the impact on net income in the
quarter ended July 30, 2023 from the elimination of $39 million of
pre-tax restructuring costs related to the 2022 cost savings
initiative and the associated tax benefit of $9 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240604806308/en/
Investor Contact: Sheryl Freeman
investorrelations@pvh.com
Media Contact: communications@pvh.com
Grafico Azioni PVH (NYSE:PVH)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni PVH (NYSE:PVH)
Storico
Da Dic 2023 a Dic 2024
