PVH Tops Profits Expectations, Reshuffles Management

PVH Corp. is bouncing back as consumers start to come out of their COVID-19 hibernation just as Stefan Larsson, newly minted chief executive officer, is putting more of his imprint on the business by changing leadership at Calvin Klein. 

Trish Donnelly, CEO, PVH Americas, who has had oversight of Calvin Klein, is taking on full global responsibility for the business starting July 1, when Calvin Klein’s current CEO, Cheryl Abel-Hodges, moves into an advisory position. 

Mike Shaffer, chief operating and financial officer, is also leaving as of September to pursue other opportunities. 

Larsson said: “On behalf of the entire team at PVH, we thank Mike and Cheryl for their many contributions. We wish them all the very best in their next endeavors.”

Some C-suite churn is expected as any new CEO settles in. Larsson took the top job at PVH from Manny Chirico at the beginning of February, although he had already firmly taken operational control of the firm during the pandemic. 

Now he’s focused on blazing the path forward and is optimistic. 

For the fiscal first quarter, PVH logged net profits of $99.9 million, or $1.38 a diluted share, climbing back from losses of $1.1 billion, or $15.37 a year earlier, when COVID-19 sent shoppers home for lockdown.

Adjusted profits came in at $1.92 a share, well above the 80 cents to 83 cents the firm previously projected (Wall Street was looking for the company to hit the high-end of that range). 

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Revenues for the three months ended May 2 increased 54.7 percent to $2.08 billion from $1.34 billion. 

Digital sales increased 95 percent and made up about 25 percent of the firm’s total top line.

Larsson said in a statement that the results “reflect our team’s strong execution of our accelerated recovery priorities across our businesses globally – focused on the Calvin Klein and Tommy Hilfiger brands, our international markets, driving product strength with increased pricing power and margin expansion, and winning in the marketplace through super-charging e-commerce.”

A look from Tommy Hilfiger’s circular design garments. courtesy shot.

 

“Looking ahead, we are increasing our full year outlook despite continued uncertainty in the macro environment, as we navigate through the pandemic and related supply chain disruptions,” the CEO said. “We are confident in our ability to drive towards an accelerated recovery in a way that positions PVH closer to the consumer than any time before. Our focus on the consumer, while leaning into our core strengths, combined with a more demand and data-driven way of driving profitable market share growth, forms a very strong foundation for long-term sustainable growth.”

For the full year, PVH is looking for adjusted earnings per share of $6.50, up from the $6 previously projected.

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