Yahoo Finance

• Revenue: Down 2% on a constant currency basis for Q4; full-year revenue down 6% on a reported basis.

• Gross Margin: Record-high 59.4% for the full year; Q4 gross margin at 58.2%, down 210 basis points from last year.

• Net Income (EPS): Record-high non-GAAP EPS of $11.74 for the full year, up 10% from 2023.

• Operating Margin: 10% for the full year, maintaining double-digit EBIT margins.

• Cash Flow: Free cash flow of nearly $600 million for the year.

• Share Repurchases: $500 million returned to shareholders through repurchase of 4.7 million shares.

• Inventory: Up 6% year-over-year, focusing on best-selling core product categories.

• Regional Performance: North America EBIT up over 40%; Europe ended with two consecutive quarters of DTC store revenue growth; Asia-Pacific delivered revenue growth in constant currency.

• 2025 Outlook: Revenue projected to be flat to up slightly; operating margin flat to up slightly; EPS projected in the range of $12.40 to $12.75.

• Warning! GuruFocus has detected 9 Warning Signs with SPWH.

Release Date: April 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PVH Corp (NYSE:PVH) exceeded its initial fiscal 2024 guidance with stronger-than-expected revenue and higher-than-expected non-GAAP EPS.

• The company achieved a record-high gross margin of 59.4% for the year, marking a 120 basis point increase.

• PVH Corp (NYSE:PVH) maintained double-digit EBIT margins at 10% despite fixed cost deleveraging in Europe.

• The company reported significant growth in consumer engagement and product sell-through for both Calvin Klein and Tommy Hilfiger.

• PVH Corp (NYSE:PVH) successfully returned its European wholesale order books to growth, indicating strong execution of its PVH+ Plan.

Negative Points

• PVH Corp (NYSE:PVH) faces uncertainty around US consumer demand and macroeconomic pressures.

• The company has been added to MOFCOM's unreliable entity list, creating potential challenges in China.

• Calvin Klein experienced product development delays, leading to temporary margin headwinds.

• The company anticipates a decline in revenue in China due to post-New Year holiday slowdown.

• PVH Corp (NYSE:PVH) expects a more promotional environment and increased freight costs to impact gross margins in the first quarter of 2025.

Q & A Highlights

Q: Stefan, can you talk about what you've learned from the quality of sales initiative in Europe and how the PVH+ Plan's elevated level of execution is impacting the business? A: Absolutely. Europe is a great story of progress. We took three focused quality of sales actions: stopped third-party sales on digital platforms, reduced the number of platforms we sold to, and improved inventory in relation to sales. We leaned into the PVH+ execution, strengthening product relevance and consumer engagement. This resulted in high-quality growth and stronger gross margins in D2C, with forward-looking wholesale order books strengthening season by season.