Source: Company reports/Coresight Research

4Q17 Results, by Category

PVH reported 4Q17 revenues of $2.50 billion, up 18.6% year over year and beating the $2.35 billion consensus estimate. Adjusted EPS was $1.58, above the consensus estimate of $1.47 and up 28.5% from the year-ago quarter.

Calvin Klein

Revenues increased 23% for the quarter to $1.00 billion (up 18% on a constant-currency basis) compared to the prior year period. Calvin Klein International revenues increased 33% to $0.51 billion (up 23% on a constant-currency basis) compared to the prior year period, driven by outstanding performance in Europe and Asia, including a 4% increase in international comparable-store sales.

Tommy Hilfiger

Revenues for the quarter increased 22% to $1.10 billion (up 15% on a constant-currency basis) compared to the prior year period. Tommy Hilfiger International revenues increased 37% to $0.70 billion (up 24% on a constant-currency basis) compared to the prior year period, driven by performance across all regions, and benefitting from there being 53 weeks in 2017. Comparable-store sales increased 6% and Tommy Hilfiger North America revenues increased 5% to $0.43 billion (up 4% on a constant-currency basis) compared to the prior year, which was attributable to a 10% increase in comparable-store sales, offset by a reduction in wholesale off-price distribution.

Heritage Brands

Revenues in the Heritage Brands business for 4Q were flat compared to the prior year period, and comparable-store sales increased by 1%.

Full-Year Highlights, by Category

Revenues for 2017 increased by 9% year over year to $8.90 billion (up 7% on a constant-currency basis). Calvin Klein: The revenue increase was due to a 10% increase in the Calvin Klein business compared to the prior year (a 9% increase on a constant-currency basis), driven by strength in Europe and China markets. International comparable-store sales increased by 6%, whereas North America comparable store-sales decreased by 1%. Tommy Hilfiger: Revenues increased by 11% year over year (up 9% on a constant-currency basis). This increase was driven mainly by outstanding performance across Europe and Asia, as well as the inclusion of a full first quarter of revenues from the China business resulting from the acquisition of Tommy Hilfiger China in April 2016. Tommy Hilfiger International comparable-store sales increased by 8%, and North America comparable-store sales increased by 3%. Heritage Brands: Revenues were flat compared to the prior year, and comparable-store sales increased by 2%.

Outlook

The company announced 1Q18 non-GAAP EPS guidance of $2.20–$2.25, versus the $1.97 consensus estimate. PVH announced its full-year 2018 revenue guidance for a 7% increase, implying a target of $9.50 billion (up approximately 4% on a constant-currency basis) compared to the consensus estimate of $9.30 billion and 2017’s revenue total of $8.90 billion.