PVH Ups Forecasts After Second Quarter Boost with Calvin Klein and Bad Bunny

PVH bounces back to the rhythm of Bad Bunny. The U.S. group, owner of Calvin Klein and Tommy Hilfiger, raises its forecast for the full year after a second quarter in which both sales and profits rose thanks to Calvin Klein’s campaign with the Puerto Rican singer.

The company, with Stefan Larsson as chief executive, now expects full-year sales to rise slightly in the low single digits compared to the flat or slight increase previously forecast, the company said on the occasion of its second-quarter results presentation.

The company closed the second quarter of the fiscal year (ended Aug. 3rd) with sales up 4.48% to $2.167 billion. In the same period, gross profit remained stable at $1,251 million, while net profit rose by 41.89% to $224 million.

PVH ended the second quarter with a 4.5% increase in sales and a 42% increase in profit

By brand, Tommy Hilfiger posted 4% growth in the second quarter, while Calvin Klein achieved a 5% sales increase. By region, group sales in the second quarter were 3% higher than in the same period of the previous year, while in the Americas the increase was 11%.

The company’s gross margin in the second quarter of the current fiscal year stood at 57.7%, compared with 60.1% in the same period of the previous fiscal year. “The decline reflects the effects of a more intense promotional environment, the difference in gross margin due to the transition of previously licensed women’s product categories to an in-house wholesale business, an unfavorable shift in channel mix, increased channel mix, higher promotional costs, and higher sales and marketing costs.

“The decrease reflects the effects of a more intense promotional environment, an unfavorable change in channel mix, increased tariffs on products entering the United States, and increased transportation costs and incremental discounts offered to customers to address the impact of delivery delays on Calvin Klein products,“ the company said.

In the first half of the year, group sales rose by 3.09% to $4,151 million. Gross profit, on the other hand, fell by 1.31% to $2,412 million, and net profit fell by 42.02% to $179 million.