TOMMY HILFIGER, CALVIN KLEIN CONTINUE TO DRIVE PVH’S GROWTH
PVH Corp. is reporting another strong year and fourth quarter mainly due to the success of its Tommy Hilfiger and Calvin Klein brands.
Revenue for 2017 exceeded guidance, with fourth quarter revenue increasing 19 percent compared to the prior year period. The company also reported a record full year 2017 revenue of $8.9 billion, which increased 9 percent compared to the prior year.
“We are very pleased with our fourth quarter and full year 2017 results, which exceeded our expectations,” said Emanuel Chirico, chairman and chief executive officer. “These results are ahead of our long-term targets, driven largely by strong momentum in our Tommy Hilfiger and Calvin Klein businesses.”
Individually, revenue in the Calvin Klein business for the fourth quarter increased 23 percent to $977 million compared to the prior year period. Calvin Klein International revenue increased 33 percent to $512 million compared to the prior year period, driven by outstanding performance in Europe and Asia, including a 4 percent increase in international comparable store sales.
Revenue in the Tommy Hilfiger business for the quarter increased 22 percent to $1.1 billion compared to the prior year period. Tommy Hilfiger International revenue increased 37 percent to $702 million compared to the prior year period, driven by exceptional performance across all regions and channels, as well as the benefit of a 53rd week in 2017. Tommy Hilfiger International comparable store sales increased 6 percent. Tommy Hilfiger North America revenue increased 5 percent to $439 million compared to the prior year period. The increase in revenue was principally attributable to a 10 percent increase in comparable store sales offset, in part, by a reduction in wholesale off-price distribution.
And, revenue in the Heritage Brands business for the quarter was flat compared to the prior year period. Comparable store sales increased 1 percent.
“Our 2017 results demonstrate our strong execution and commitment to our long-term vision,” continued Chirico. “We continued to make investments that centered around areas most impacted by the changing dynamics in the industry – the growing prominence of digital, the importance of having a nimble and responsive supply chain and our ever-present commitment to driving consumer engagement. We encouraged our associates to be forward-thinking, with a focus on adapting to the evolving consumer environment, enhancing our brands and their competitive positioning across product lines and geographies, and better aligning our business to make it easier to initiate and effect change.”
“We believe that the incredible brand power behind Calvin Klein and Tommy Hilfiger positions us well in the marketplace against our competition and will drive continued momentum, as reflected in our 2018 outlook,” added Chirico. “While we, like many other global consumer companies, will continue to face geopolitical headwinds, the power of our brands, our businesses and, most importantly, our people should drive our company forward.”
