Home / Business and Economy / PVH Corp Shares Tumble on EMEA Woes
PVH Corp Shares Tumble on EMEA Woes
5 Jun
Summary
- PVH Corp reported a 2% revenue increase to $2 billion in Q1.
- Direct-to-consumer sales climbed, but wholesale revenue was flat.
- Company anticipates a 3-4% revenue drop in Q2 due to EMEA.
PVH Corp experienced a significant share price decline on Thursday following a cautionary outlook from the fashion conglomerate. The parent company of Calvin Klein and Tommy Hilfiger reported a modest 2% year-over-year revenue increase to $2 billion for its fiscal first quarter, which concluded on May 3. However, when excluding currency fluctuations, sales saw a 2% decrease.
Despite a 6% rise in direct-to-consumer revenue, driven by strong online and in-store performance, PVH's wholesale business remained flat and declined by 6% on a constant-currency basis. The company's adjusted operating income fell to $131 million from $160 million a year prior, with margins shrinking due to increased marketing expenses.
Looking ahead, PVH issued a warning about the impact of Middle East tensions on its sales. Management anticipates a 3% to 4% revenue decrease in the second quarter, primarily due to a downturn in its Europe, Middle East, and Africa (EMEA) segment. CEO Stefan Larsson noted the balancing act between brand momentum and geopolitical pressures affecting consumer spending in the EMEA region.
