Tommy Hilfiger parent company PVH has reaffirmed its full-year outlook after reporting a 2 percent increase in revenue in the first quarter, beating its Q1 guidance.
The US fashion giant generated revenue of 2.158 billion dollars in the first quarter, up from 2.123 billion dollars a year earlier, as growth in its DTC business offset a drop in wholesale revenue.
International sales were also a driver of growth, especially in the Asia Pacific region, including a 44 percent surge in sales in local currency in China following the lifting of Covid restrictions.
Breaking it down by brand, Tommy Hilfiger revenue increased 5 percent in the quarter, with international revenue up 3 percent and North America revenue up 11 percent.
Meanwhile, Calvin Klein experienced a flat performance in the quarter, with a 7 percent increase in international revenue offset by a 12 percent decline in its domestic market.
Revenue at Heritage Brands dropped 12 percent.
PVH Q1 profits widen
The company’s net profit widened slightly to 136 million dollars from 133.1 million dollars the prior year. Earnings per share increased to 2.14 dollars, up from 1.94 dollars.
PVH CEO Stefan Larsson told investors: “We delivered a strong start to the year with first quarter performance ahead of our guidance for both revenue and earnings, driven by our disciplined execution of the PVH+ Plan.”
PVH reaffirmed its full-year outlook based on its Q1 results. The company expects revenue to increase by between 3 percent and 4 percent year-on-year, while EPS is projected to increase to approximately 10 dollars from 3.03 dollars on a GAAP basis.