PVH Corp. (NYSE:PVH) has reported fourth-quarter and full-year 2022 results that beat its guidance and forecast double-digit growth in 2023 earnings, sending its shares more than a fifth higher in early trade.
The owner of brands that include Calvin Klein and Tommy Hilfiger said fourth-quarter revenue increased 2% to $2.49 billion and was 8% higher on a constant currency basis. That was above Wall Street estimates of $2.36 billion and its own guidance for a 4% decrease.
Earnings per share (EPS) of $2.38 beat Street estimates of $1.66 and its guidance of $1.65.
It attributed the performance to growth in both its Tommy Hilfiger and Calvin Klein brand businesses. The increase included strong revenue growth in Europe, as well as growth in North America, particularly in the direct-to-consumer business, despite the challenging global macroeconomic environment. The company said it continued to experience negative impacts from the COVID-19 pandemic in China.
“We delivered strong fourth quarter performance with stronger than expected high-single digit constant currency revenue growth and earnings above guidance,” CEO Stefan Larsson said in a statement.
Disciplined executive of PVH+ Plan
“Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy enabled us to compete to win despite the challenging macro situation. Since we introduced our PVH+ Plan, we have made significant progress all around the world in driving brand desirability by getting closer to the consumer, creating great products and delivering very strong consumer engagement through impactful talent partnerships.”
For FY22, revenue decreased 1% to $9.02 billion and EPS of $8.97, again above its guidance for a 3% decrease in revenue and EPS of approximately $8.25.
The company has projected a 3% to 4% increase in 2023 revenue and EPS of approximately $10 on an operating margin also around 10%.
“We are entering 2023 with significant momentum, and we will continue to execute the PVH+ Plan with discipline towards our long-term vision to build TOMMY HILFIGER and Calvin Klein into the most desirable lifestyle brands in the world and be one of the highest performing brand groups in our sector,” Larsson concluded.
PVH's shares were 20% higher at $88.64 by 11am in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com