The Owner of Calvin Klein and Tommy Hilfiger Continues to See Growth Under CEO Stefan Larsson’s New Strategic Plan
PVH Corp. reported impressive financial results for the fourth quarter, surpassing sales and profit expectations and experiencing a significant 16.6 percent rise in share price to $75.38 during after-hours trading on Monday.
Under CEO Stefan Larsson’s leadership, PVH Corp., which owns Calvin Klein and Tommy Hilfiger, has been implementing the strategic PVH+ plan, influencing all aspects of the business. Larsson highlighted the success of the recent Bad Bunny campaign, noting its substantial cultural impact and significant digital reach. The campaign debuted on Calvin Klein’s Instagram, quickly reaching over 29 million users and gaining nearly 100,000 new followers within the first week.
Additionally, Tommy Hilfiger has been active, launching The Hilfiger Resort, a summer event in Canouan, Caribbean, which attracted celebrities like Patrick Schwarzenegger, Madelyn Cline, and Abby Champion and achieved 160 million impressions in 72 hours.
Despite the positive momentum, Larsson acknowledged the challenges facing the retail sector, particularly a slowdown in February in North America, though he noted a stabilization in March.
For the fourth quarter, PVH reported a net income of $157.2 million, or $2.83 per diluted share, down 42.2 percent from $241.8 million, or $4.55 per share, in the previous year. However, adjusted earnings were $3.27 per share, exceeding analysts’ predictions by six cents.
Revenues for the quarter ended February 2 decreased by 5 percent to $2.4 billion, which still surpassed analyst expectations of $2.3 billion. This includes a 3 percent decline due to an additional week in the previous year’s quarter. The Calvin Klein brand saw a 1 percent increase in constant currencies, while Tommy Hilfiger’s revenue decreased by 3 percent.
Looking ahead, PVH projects adjusted earnings per share for the year to increase to between $12.40 and $12.75, up from $11.74 last year, surpassing the analysts’ forecast of $11.56. Revenue projections for 2025 are expected to be flat to slightly up, and the company plans an additional $500 million in share repurchases this year. Larsson also noted that the tariffs imposed by U.S. President Donald Trump so far are unlikely to significantly impact PVH’s business, as these have been incorporated into the company’s financial guidance.