Net Income and Comprehensive Income - Net income for the thirteen weeks ended November 3, 2024, was $131.9 million, compared to $161.6 million in the same period last year[9] - Net income for the thirty-nine weeks ended November 3, 2024, was $441.3 million, compared to $391.8 million in the same period last year[9] - Total other comprehensive loss for the thirteen weeks ended November 3, 2024, was $12.8 million, compared to $81.6 million in the same period last year[9] - Total other comprehensive loss for the thirty-nine weeks ended November 3, 2024, was $34.0 million, compared to $91.6 million in the same period last year[9] - Comprehensive income for the thirty-nine weeks ended October 29, 2023, was $107.5 million, $112.7 million, and $80.0 million for the respective periods[16] - Comprehensive income for the thirty-nine weeks ended November 3, 2024, was $147.4 million[18] Cash and Cash Equivalents - Cash and cash equivalents as of November 3, 2024, were $559.6 million, compared to $707.6 million as of February 4, 2024, and $357.6 million as of October 29, 2023[12] Total Assets and Liabilities - Total current assets as of November 3, 2024, were $3,478.2 million, compared to $3,259.7 million as of February 4, 2024, and $3,347.1 million as of October 29, 2023[12] - Total liabilities as of November 3, 2024, were $5,953.1 million, compared to $6,053.0 million as of February 4, 2024, and $6,112.8 million as of October 29, 2023[12] Cash Flow Activities - Net cash provided by operating activities for the thirty-nine weeks ended November 3, 2024, was $254.4 million, compared to $311.7 million in the same period last year[14] - Net cash used by investing activities for the thirty-nine weeks ended November 3, 2024, was $100.6 million, compared to $165.3 million in the same period last year[14] - Net cash used by financing activities for the thirty-nine weeks ended November 3, 2024, was $300.0 million, compared to $330.8 million in the same period last year[14] Foreign Currency and Hedging - Foreign currency translation adjustments resulted in a loss of $16.7 million, a gain of $21.1 million, and a loss of $154.6 million for the respective periods[16] - Net unrealized and realized loss related to effective cash flow hedges was $2.0 million, a gain of $0.3 million, and a gain of $24.7 million for the respective periods[16] - Net loss on net investment hedges was $9.8 million, $2.9 million, and a gain of $48.3 million for the respective periods[16] - The notional amount outstanding of foreign currency forward contracts was $1,341.0 million at November 3, 2024, with contracts expiring between November 2024 and April 2026[90] - The fair value and carrying value of foreign currency borrowings designated as net investment hedges were $1,222.6 million and $1,211.0 million, respectively, as of November 3, 2024[86] - The company entered into cross-currency swap contracts in 2023, converting $500.0 million of USD-denominated debt to €457.2 million of EUR-denominated debt, with a weighted average interest rate of 1.405%[87] - The total gain recognized in other comprehensive income from cash flow and net investment hedges was $19.7 million for the thirteen weeks ended November 3, 2024[93] - The total gain reclassified from accumulated other comprehensive loss (AOCL) into income was $7.0 million for the thirteen weeks ended November 3, 2024[94] - A net gain in AOCL on foreign currency forward contracts of $10.7 million is estimated to be reclassified in the next 12 months to cost of goods sold[94] Stock-Based Compensation and Equity - Stock-based compensation expense was $13.1 million, $14.3 million, and $12.1 million for the respective periods[16] - Stock-based compensation expense for the thirty-nine weeks ended November 3, 2024, was $39.1 million, with a recognized income tax benefit of $4.8 million[110] - The weighted average grant date fair value per stock option for the thirty-nine weeks ended November 3, 2024, was $60.96, with a weighted average risk-free interest rate of 4.33%[111] - RSU activity for the thirty-nine weeks ended November 3, 2024, showed 1,116 non-vested RSUs with a weighted average grant date fair value of $93.14 per RSU[113] - PSU awards granted in 2021 resulted in 55,000 shares earned, with performance on the one-year EBIT measure above the maximum level and three-year TSR measure between threshold and target levels[115] - The company estimates the fair value of stock options using the Black-Scholes-Merton model, with a weighted average expected stock option term of 6.25 years and company volatility of 53.32%[111] - The fair value of RSUs is determined based on the closing price of the company's common stock on the grant date[112] - Weighted average grant date fair value per PSU is $138.12 with a weighted average risk-free interest rate of 4.71% and company volatility of 48.28%[118] - Total PSUs non-vested at November 3, 2024 increased to 307,000 from 236,000 at February 4, 2024, with a weighted average grant date fair value of $106.68[120] - Accumulated Other Comprehensive Loss (AOCL) increased to $787.6 million at November 3, 2024 from $753.6 million at February 4, 2024, driven by unfavorable foreign currency translation adjustments[121][122] Revenue and Sales - Revenue from Israel and the Middle East is expected to be less than 1% and 2% of total revenue in 2024, respectively[27] - Total revenue for the thirteen weeks ended 11/3/24 was $2,255.1 million, down from $2,362.9 million in the same period in 2023[150] - Tommy Hilfiger North America segment revenue for the thirteen weeks ended 11/3/24 was $349.8 million, down from $359.2 million in the same period in 2023[150] - Calvin Klein North America segment revenue for the thirteen weeks ended 11/3/24 was $341.8 million, down from $375.5 million in the same period in 2023[150] - Calvin Klein International segment revenue for the thirteen weeks ended 11/3/24 was $652.1 million, up from $646.7 million in the same period in 2023[150] - Heritage Brands Wholesale segment revenue for the thirteen weeks ended 11/3/24 was $60.3 million, down from $130.8 million in the same period in 2023[150] - Total net sales for the thirteen weeks ended 11/3/24 were $2,131.0 million, down from $2,225.8 million in the same period in 2023[150] - Wholesale net sales for the thirteen weeks ended November 3, 2024 were $1,203.1 million, down 7.6% from $1,301.6 million in the same period in 2023[152] - Owned and operated retail stores generated $760.0 million in revenue for the thirteen weeks ended November 3, 2024, a slight increase from $754.7 million in the same period in 2023[152] Income Before Interest and Taxes - Income before interest and taxes for the thirteen weeks ended November 3, 2024 was $183.1 million, compared to $229.8 million in the same period in 2023, a decrease of 20.3%[153] - Tommy Hilfiger International segment income before interest and taxes for the thirteen weeks ended November 3, 2024 was $58.0 million, down 36.1% from $90.8 million in the same period in 2023[153] - Calvin Klein International segment income before interest and taxes for the thirteen weeks ended November 3, 2024 was $84.5 million, down 11.0% from $94.9 million in the same period in 2023[153] Deferred Revenue and Contractual Obligations - Contractual minimum fees from license agreements not yet satisfied total $647.6 million, with $62.9 million expected to be recognized in 2024, $236.8 million in 2025, and $347.9 million thereafter[33] - Deferred revenue recognized during the thirteen weeks ended November 3, 2024, was $2.6 million, compared to $4.0 million for the same period in 2023[35] - Long-term deferred revenue liabilities were $7.4 million as of November 3, 2024, down from $9.4 million as of February 4, 2024[36] - Deferred revenue balance at the end of the thirty-nine weeks ended November 3, 2024, was $46.7 million, down from $48.4 million for the same period in 2023[39] Pension Plans and Employee Benefits - The company has two noncontributory qualified defined benefit pension plans covering substantially all employees resident in the United States hired prior to January 1, 2022, with benefits based on career average compensation and years of credited service[51] - The company's Pension Plans and supplemental pension plan will freeze pensionable compensation and credited service amounts effective June 30, 2024, except for employees near retirement age who meet a specified service requirement[51] - The total net benefit cost for the Pension Plans was $0.9 million for the thirteen weeks ended November 3, 2024, and $5.7 million for the thirty-nine weeks ended November 3, 2024[53] - The total net benefit cost for the SERP Plans was $0.7 million for the thirteen weeks ended November 3, 2024, and $2.4 million for the thirty-nine weeks ended November 3, 2024[54] Long-Term Debt and Financing - The company's long-term debt carrying amount was $2,165.3 million as of November 3, 2024, with a current portion of $511.1 million[61] - The company's mandatory long-term debt repayments for the remainder of 2024 through 2029 total $2,175.3 million, with $511.9 million due in 2025 and $1,079.7 million due in 2027[62] - Approximately 80% of the company's long-term debt had fixed interest rates as of November 3, 2024[63] - The company made payments totaling $9.0 million on its term loan under the 2022 facilities during the thirty-nine weeks ended November 3, 2024[66] - The company issued €525.0 million principal amount of 4 1/8% senior notes due July 16, 2029, with €5.4 million in fees paid in connection with the issuance[73] - The company had $84.9 million of standby letters of credit and bank guarantees outstanding as of November 3, 2024[77] Income Tax Rates - The effective income tax rate for the thirteen weeks ended November 3, 2024 was 21.0%, down from 22.2% in the prior year period, primarily due to a change in the mix of international and domestic earnings[78] - The effective income tax rate for the thirty-nine weeks ended November 3, 2024 was 13.3%, down from 22.3% in the prior year period, primarily due to a favorable change in uncertain tax positions and a change in the mix of international and domestic earnings[79] Fair Value Measurements - The company uses a three-level hierarchy to measure fair value, with Level 1 being unadjusted quoted prices in active markets, Level 2 being observable inputs, and Level 3 being unobservable inputs[98][99][100] - Total assets as of November 3, 2024, were $56.5 million, with foreign currency forward contracts valued at $14.2 million and cross-currency swap contracts at $15.6 million[101] - The company's rabbi trust assets were valued at $13.8 million as of November 3, 2024, with corresponding deferred compensation liabilities included in accrued expenses[104] - The fair value of long-term debt as of November 3, 2024, was $2,176.5 million, compared to a carrying amount of $2,165.3 million[107] Cost Savings and Restructuring - The company expects to generate annual cost savings of $200 million to $300 million by 2026 through its Growth Driver 5 Actions, with $27.5 million in pre-tax severance and termination costs incurred during the thirty-nine weeks ended November 3, 2024[130][131] - A pre-tax gain of $9.5 million was recorded from the sale of a warehouse and distribution center during the thirty-nine weeks ended November 3, 2024[132] - The 2022 cost savings initiative resulted in annual cost savings of over $100 million, with $81.5 million in pre-tax severance and termination costs incurred during 2022 and 2023[134][136] - Severance, termination benefits, and other employee costs liability decreased from $20.4 million to $4.1 million during the thirty-nine weeks ended 11/3/24[138] Business Divestitures and Acquisitions - The Company completed the sale of its women's intimates businesses under the Warner's, Olga, and True&Co. trademarks to Basic Resources on November 27, 2023[20] - The company sold its women's intimates businesses for $160.0 million, resulting in a gain of $15.3 million in Q4 2023 and an additional $10.0 million gain in Q1 2024[41][42] Impairment Testing - Goodwill impairment test for 2024 showed no impairment, with the Tommy Hilfiger International reporting unit's fair value exceeding its carrying amount by approximately 10%[48][49] - The indefinite-lived intangible asset with the least excess fair value exceeded its carrying amount by 19% in the 2024 impairment test[50] Supply Chain and Logistics - Shipping delays due to attacks in the Red Sea and potential port strikes could increase freight costs and impact inventory and sales volume[28][30] - Attacks on commercial shipping vessels in the Red Sea have led to supply chain disruptions, but did not materially impact the company's business in 2023 or the first nine months of 2024[28] - A brief port strike on the East and Gulf Coasts of the United States in October 2024 did not materially impact the company's business in Q3 2024, but a resumption could lead to shipping delays and increased freight costs[30] Trade Receivables and Credit Losses - Trade receivables, net as of November 3, 2024, were $979.7 million, compared to $793.3 million as of February 4, 2024, and $1,045.4 million as of October 29, 2023[12] - The allowance for credit losses on trade receivables was $46.6 million as of November 3, 2024, compared to $43.9 million as of October 29, 2023[168] - Suppliers had elected to sell $422.9 million of the company's payment obligations through the supply chain finance program as of November 3, 2024, compared to $348.3 million as of October 29, 2023[170] Warehousing and Distribution - Warehousing and distribution expenses for the thirteen weeks ended November 3, 2024 totaled $84.2 million, a decrease of 5.1% from $88.7 million in the same period in 2023[167] Employee Agreements and Compensation - The company incurred $50.7 million in costs related to an amendment to Mr. Tommy Hilfiger's employment agreement, which was included in the Tommy Hilfiger North America and International segments[156] Share Repurchases and Dividends - The company repurchased 2.4 million shares for $254.2 million (excluding $2.2 million excise taxes) during the thirty-nine weeks ended November 3, 2024, with $2.019 billion remaining in the stock repurchase program[126] - Dividends declared were $2.4 million, $2.4 million, and $2.3 million for the respective periods[16] - Dividends declared were $0.0375 per common share for the thirty-nine weeks ended October 29, 2023[16] International Operations and Geopolitical Risks - The company exited its Russia business in Q2 2022, with less than 1% of 2024 revenue expected from Ukraine[31] - Less than 1% of the company's revenue in 2024 is expected to be generated in Israel, and less than 2% in the Middle East, including Israel[27] - The Israel-Hamas war and the war in Ukraine did not have a material impact on the company's business in 2023 and are not expected to in 2024[27][31] Financial Reporting and Accounting Policies - The company's fiscal years are based on 52-53 week periods ending on the Sunday closest to February 1, designated by the calendar year in which the fiscal year commences[22] - The company's consolidated financial statements are prepared in conformity with U.S. GAAP, requiring management to make estimates and assumptions that could materially differ from actual results[24] Non-Financial Assets and Impairments - The company's non-financial assets, including goodwill and property, plant, and equipment, are not required to be measured at fair value on a recurring basis, and no impairments were recorded during the thirty-nine weeks ended November 3, 2024[106]

Financial Data and Key Metrics Changes - The company reported a revenue decline of 5% year-over-year, with a 2% decline attributed to the sale of the Heritage Intimates business [42] - Non-GAAP EBIT margin was 10.5%, flat compared to the previous year, driven by higher gross margins and strong expense management [40][53] - Gross margin improved by 170 basis points year-over-year to 58.4%, with half of the increase due to a higher direct-to-consumer mix [50] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue was flat on a reported basis and down 1% in constant currency, with improvements noted in September and October [10][47] - Wholesale revenue declined by 4% on a reported basis and 5% in constant currency, excluding a 4% negative impact from the Heritage Brand sale [11][48] - Calvin Klein revenues decreased by 3% on a reported basis, while Tommy Hilfiger revenues were down 1% [49] Market Data and Key Metrics Changes - North America saw a low-single-digit decline in D2C revenue, with a high-single-digit decline in wholesale due to shipment timing [23][46] - In Europe, overall revenue declined by 1% on a reported basis, with a 6% impact from quality of sales actions [27] - Asia Pacific delivered mid-single-digit growth on a reported basis, with Japan leading and China increasing by 7% in local currency [32] Company Strategy and Development Direction - The company is focused on executing the PVH+ plan, aiming for long-term profitable growth through improved product execution and consumer engagement [15][64] - A flagship store for Calvin Klein is set to open in New York's SoHo, enhancing brand visibility and consumer engagement [18] - The company aims to return to modest growth in 2025, targeting a long-term operating margin of 15% [14][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, supported by improved D2C trends and inventory composition [72] - The company is navigating a challenging macro environment but remains focused on driving efficiencies and maintaining profitability [38][110] - Management highlighted the importance of consumer engagement and brand relevance in driving future growth [95] Other Important Information - The company is under investigation by China's Ministry of Commerce, which is ongoing, and it has cooperated fully with the authorities [34][36] - The company generated approximately 6% of its revenue and 16% of EBIT from China in 2023 [36] Q&A Session Summary Question: Could you elaborate on customer demand for fall product assortments? - Management noted double-digit sell-through improvements for Fall '24 products across all regions and channels, indicating strong demand [68][70] Question: Can you help us size the fourth quarter gross margin guidance? - Management explained that the gross margin is expected to decline by 200 basis points due to a more promotional environment and increased freight costs [86][88] Question: Can you discuss the promotional activity in North America? - Management indicated that the holiday shopping season started earlier this year, leading to increased promotional pressure, but they are managing inventory effectively [110] Question: How is the transition of licensing impacting the business? - Management stated that bringing women's products back in-house is crucial for long-term competitiveness and brand strength [116]

Core Viewpoint - PVH Corporation reported better-than-expected earnings in Q3 FY2024, with adjusted EPS and revenues surpassing estimates, although revenues declined year-over-year [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $3.03, a 4.5% increase from $2.90 in the prior year, exceeding the Zacks Consensus Estimate of $2.61 and the company's guidance of $2.50 [3] - Revenues fell 5% year-over-year to $2,255 million, but were above the consensus estimate of $2,228 million; management had anticipated a decline of 6-7% [4] - Gross profit was $1.3 billion, down 1.5% year-over-year, while gross margin expanded by 170 basis points to 58.4% due to a favorable shift in channel mix [8] Revenue Breakdown - International revenues increased by 0.4%, but decreased by 1.8% on a constant currency basis; growth in Asia Pacific was offset by reduced sales in Europe [5] - Direct-to-consumer revenues rose 0.4% year-over-year, while wholesale revenues fell 7.6% [6][7] - The Calvin Klein segment saw a 2.8% decline in revenues, while Tommy Hilfiger revenues dropped 0.7% [10][11] Guidance and Future Expectations - For Q4 FY2024, revenues are projected to decline by 6-7%, with adjusted EPS expected in the range of $3.05-$3.20 compared to $3.72 in the prior year [14][15] - For the full fiscal year 2024, the company anticipates a revenue decline of 6-7% and adjusted operating margin to remain nearly flat [16] - Management revised EPS guidance downwards, now expecting non-GAAP EPS of $11.55-$11.70, compared to the previous range of $11.55-$11.80 [17] Shareholder Returns - The company repurchased 300,000 shares for $29 million in the reported quarter, with a total of 2.4 million shares repurchased for $254 million in the first nine months of FY2024 [13]

Shares of PVH Corp. (NYSE: PVH ) have had a rocky year. While up 7%, they have not recovered since reporting disappointing results in April. On Wednesday, investors got more negative news with the company reporting another set of mixed results, sending sharesOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an arti ...

PVH (PVH) reported $2.26 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 4.6%. EPS of $3.03 for the same period compares to $2.90 a year ago.The reported revenue represents a surprise of +1.38% over the Zacks Consensus Estimate of $2.22 billion. With the consensus EPS estimate being $2.61, the EPS surprise was +16.09%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

PVH (PVH) came out with quarterly earnings of $3.03 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $2.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.09%. A quarter ago, it was expected that this owner of the Calvin Klein and Tommy Hilfiger brands would post earnings of $2.27 per share when it actually produced earnings of $3.01, delivering a surprise of 32.60%.Over the l ...

Calvin Klein ＴＯＭＭＹ 〓 HILFIGER PVH CORP. REPORTS 2024 THIRD QUARTER REVENUE AND EARNINGS ABOVE GUIDANCE • Third quarter ◦ Revenue: Decreased 5% to $2.255 billion compared to the prior year period (decreased 6% on a constant currency basis), and exceeded guidance of a decrease of 6% to 7% (decrease of 7% to 8% on a constant currency basis) ◦ EPS: ▪ GAAP basis: $2.34 exceeded guidance of approximately $2.30 ▪ Non-GAAP basis: $3.03 exceeded guidance of approximately $2.50 • Full year outlook ◦ Revenue: Reaffirm ...

PVH Corporation (PVH) is likely to post a year-over-year decline in its top and bottom lines when it reports third-quarter fiscal 2024 results on Dec. 4, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.2 billion, indicating a drop of 5.9% from the prior-year number.The consensus estimate for earnings is pegged at $2.61 per share, which indicates a decline of 10% year over year. The consensus mark has remained stable in the past 30 days.In the last reported quarter, th ...

Wall Street expects a year-over-year decline in earnings on lower revenues when PVH (PVH) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on December 4. On the oth ...

PVH Corp. (PVH) is currently trading at a notably low price-to-earnings (P/E) multiple, which is below the Zacks Textile - Apparel industry and broader Consumer Discretionary averages. PVH's forward 12-month P/E ratio is 8.09, lower than the industry average of 13.59x and the sector average of 18.62x. A lower P/E ratio often signals that a stock may be priced attractively relative to its earnings potential, which can be appealing to value-focused investors. The stock is undervalued compared with its industr ...