Apparel powerhouse PVH Corp (NYSE:PVH) has announced an impressive third-quarter performance, prompting an upward adjustment in its full-year earnings per share (EPS) outlook. Known for its renowned brands like Tommy Hilfiger and Calvin Klein, the company exceeded market expectations by recording revenues of $2.363 billion.
During the quarter, PVH reported a GAAP EPS of $2.66, surpassing estimates of $2.43, while its non-GAAP EPS stood even higher at $2.90, beating forecasts of approximately $2.70. This financial success was largely attributed to an 8% surge in direct-to-consumer sales and a remarkable 13% spike in digital sales.
With this triumph, PVH Corp has revised its full-year EPS guidance to approximately $9.75 on a GAAP basis and around $10.45 on a non-GAAP basis. This revision underscores the company’s confidence in its financial strategies and market position.
Key brands within PVH demonstrated robust performance, particularly in North America, where Calvin Klein and Tommy Hilfiger witnessed revenue growth of 6% and 4%, respectively. However, the company’s Heritage Brands experienced an anticipated 11% decline due to the sale of its intimate apparel division in November. Nonetheless, this divestiture has bolstered the company’s capital, leading to an expanded share buyback plan amounting to $550 million.
Looking ahead to the close of fiscal year 2023, PVH anticipates modest revenue growth of approximately 1%. For the upcoming fourth quarter, a slight revenue decrease of 3-4% is expected. Nonetheless, PVH remains resolute in its objectives, aiming to align inventory levels by targeting a 25% reduction relative to sales. The company projects a GAAP EPS nearing $3.48 and a non-GAAP EPS close to $3.45 for the quarter.
PVH’s strategic financial management and aggressive capital initiatives position the company favorably in the competitive apparel market, suggesting a path for sustained success.