US’ PVH Corp posts $2.28 bn in revenue in Q3 FY22, exceeds guidance

American clothing company PVH Corp has reported $2.28 billion in revenue for the third quarter (Q3) of financial year 2022 (FY22). Despite a 2-per-cent year-on-year (YoY) decline, the company’s revenue has exceeded the estimate of previous guidance. Gross margin in Q3 FY22 was 55.9 per cent as compared to 57.7 per cent in the corresponding period of the previous year.

PVH Corp’s direct-to-consumer revenue decreased 5 per cent in Q3 FY22 (increased 5 per cent on a constant currency basis) compared to the prior year period. Wholesale revenue decreased 2 per cent in the third quarter of 2022 (increased 9 per cent on a constant currency basis) compared to the prior year period, the company said in a press release.

American clothing company PVH Corp has reported $2.28 billion in revenue for the third quarter of financial year 2022. Despite a 2-per-cent year-on-year decline, the company’s revenue has exceeded the estimate of previous guidance. Gross margin in Q3 FY22 was 55.9 per cent as compared to 57.7 per cent in the corresponding period of the previous year.

Total digital revenue in Q3 FY22 decreased 12 per cent (decreased 1 per cent on a constant currency basis) compared to the prior year period. Digital penetration as a percentage of total revenue was approximately 20 per cent.

The company’s underlying high single-digit revenue growth compared to Q3 FY21 was driven by growth across all regions and in both its Tommy Hilfiger and Calvin Klein brand businesses.

In Q3 FY22, Tommy Hilfiger’s revenue decreased 4 per cent (increased 7 per cent on a constant currency basis) compared to Q3 FY21.

Calvin Klein’s revenue in Q3 FY22 increased 1 per cent (increased 9 per cent on a constant currency basis) compared to Q3 FY21.

PVH Corp’s earnings before interest and taxes (EBIT) on a GAAP basis in the third quarter of FY22 was a loss of $214 million, inclusive of a $30 million negative impact due to foreign currency translation, compared to $377 million in Q3 FY22. Included in the third quarter was a noncash goodwill impairment charge of $417 million, which was non-operational and driven by a significant increase in discount rates.

In Q3 FY22, EBIT on a non-GAAP basis was $220 million, inclusive of a $30 million negative impact due to foreign currency translation, compared to $266 million in the prior year period.

The company’s earnings per share (EPS) on a GAAP basis in Q3 FY22 was a loss of $2.88 compared to a gain of $3.89 in the prior year period. On a Non-GAAP basis, the EPS was $2.60 compared to $2.67 in Q3 FY21.

For the full fiscal 2022, PVH Corp expects the revenue to be at the top end of the previous guidance range, a decrease of approximately 3 per cent as compared to 2021. The EPS on a GAAP basis is projected to be approximately $1.37 compared to $13.25 in 2021.

For the fourth quarter of FY22, the company expects the revenue to decrease approximately 4 per cent as compared to the corresponding prior year period, including a 2 per cent reduction resulting from the impact of the war in Ukraine. The EPS on a GAAP basis is projected to be approximately $0.45 compared to $5.53 in 2021.

Fibre2Fashion News Desk (DP)