Q1 2024 PVH Corp Earnings Call Transcript
Key Points
- PVH Corp (PVH) delivered first-quarter results in line with revenue expectations and achieved stronger-than-expected double-digit EPS growth year over year.
- The company drove 3% growth in its direct-to-consumer business on a constant currency basis.
- PVH Corp (PVH) achieved 350 basis points of gross margin expansion and increased EBIT margins by 80 basis points on a non-GAAP basis year over year.
- The company reaffirmed its revenue outlook for the full year and raised its EPS guidance, reflecting confidence in continued execution despite macro headwinds.
- PVH Corp (PVH) saw significant consumer engagement and brand desirability for both Calvin Klein and Tommy Hilfiger, driven by effective marketing campaigns and product innovations.
- Revenue for the first quarter was down 10% versus last year, including a 1% negative impact from exchange and a 3% decline from the sale of the heritage intimates business.
- Sales in the European business were down 12% in euros due to strategic decisions to focus on higher quality of sales and challenging macroeconomic conditions.
- Wholesale revenue was down 17%, including a 6% decline from the sale of the heritage intimates business and the impact from the quality of sales focus in Europe.
- SG&A expense as a percent of revenue increased by 270 basis points versus last year, partly due to higher DTC mix and deleverage of expenses on lower revenues.
- The company continues to navigate a tough macroenvironment, including a soft consumer backdrop and a conservative wholesale environment, particularly in Europe.
Good morning, everyone, and welcome to today's PPH first-quarter 2024 earnings conference call. (Operator Instructions) Please note this call may be recorded and I'll be standing by should you need any assistance.
It is now my pleasure to turn today's program over to Sheryl Freeman, Senior Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to the PVH Corp first-quarter 2024 earnings conference call. Leading the call today will be Stefan Larsson, Chief Executive Officer; and Zac Coughlin, Chief Financial Officer.
This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material. It may not be recorded, rebroadcast, or otherwise transmitted without PVH's written permission. Your participation constitutes your consent to having anything you say appear in any transcript or replay of this call.
The information to be discussed includes forward-looking statements that reflect PVH's view as of June 5, 2024
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