PVH Corp's Q4 2024 Earnings: A Mixed Bag of Challenges and Opportunities

In the ever-evolving landscape of the apparel, footwear, and accessories industry, PVH Corp's Q4 2024 earnings call provided a nuanced picture of the company's performance amidst a challenging macroeconomic backdrop. The call, held on March 31, 2025, revealed a 5% decrease in fourth-quarter revenue to $2.372 billion, a decline that was mitigated by strategic initiatives and disciplined execution of the PVH+ Plan. Despite the headwinds, the company managed to exceed its guidance, showcasing resilience and adaptability in a competitive market.



The 5% decrease in revenue can be attributed to several factors, including a 3% decline due to the 53rd week in 2023 and a 1% decline resulting from the sale of the Heritage Brands women’s intimates. However, the company's performance was relatively stable compared to its competitors. Nike Inc, one of the leading players in the industry, reported a revenue of $48,978.00 million with a market share of 22.66%, while PVH Corp had a revenue of $8,652.90 million with a market share of 4.00%. Other competitors like Lululemon Athletica Inc and Ross Stores Inc also reported significant revenues, with Lululemon Athletica Inc having a revenue of $10,587.81 million and a market share of 4.90%, and Ross Stores Inc having a revenue of $21,129.22 million and a market share of 9.77%.

The company's strategic initiatives, particularly the PVH+ Plan, played a significant role in its financial performance. According to Stefan Larsson, the Chief Executive Officer, the disciplined execution of the PVH+ Plan helped the company finish the year strong. The plan contributed to better-than-expected revenue in constant currency, record gross margins, and a double-digit non-GAAP EBIT margin. Larsson stated, "Driven by the strength of our two iconic global brands, Calvin Klein and TOMMY HILFIGER, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well-positioned for 2025."

Looking ahead to 2025, PVH Corp projects a stable to slightly increasing revenue and operating margin. The company expects revenue to be flat to increase slightly on a constant currency basis compared to 2024. The operating margin is projected to be flat to increase slightly on a non-GAAP basis compared to 10.0% in 2024. The EPS is projected to be in a range of $12.40 to $12.75 on a non-GAAP basis, including a negative impact of approximately $0.20 per share related to foreign currency translation. Additionally, the company completed approximately $500 million in stock repurchases during 2024 and plans another $500 million in 2025 pursuant to accelerated share repurchase agreements, reflecting confidence in its future performance.

Zac Coughlin, the Chief Financial Officer, highlighted that the company delivered on its commitments despite a tougher-than-expected macroeconomic backdrop. He mentioned, "We leaned into the next level of PVH+ Plan execution across the Company to create value by increasing quality of sales and driving gross margin improvements and cost efficiencies to deliver significant cash flow from operations." This strategic focus is expected to continue driving long-term, sustainable growth and enhancing shareholder value.

In conclusion, PVH Corp's Q4 2024 earnings call revealed a mixed bag of challenges and opportunities. While the company faced a 5% decrease in revenue, its strategic initiatives and disciplined execution of the PVH+ Plan helped it mitigate the negative impacts and exceed its guidance. Looking ahead to 2025, the company is well-positioned for long-term, sustainable growth, with a focus on increasing quality of sales, driving gross margin improvements, and cost efficiencies. Investors and stakeholders will be watching closely to see how PVH Corp navigates the competitive landscape and continues to deliver value in the apparel, footwear, and accessories industry.