PVH Strikes a Massive Deal and Increases 2021 Outlook, Q1 Results Significantly Exceed Expectations

Thursday, Jun 24, 2021

PVH Corp. (NYSE: PVH) announced on June 23rd “that it is updating its full year outlook in connection with its earlier announcement that it has entered into a definitive agreement to sell certain intellectual property and other assets of its Heritage Brands business to Authentic Brands Group (“ABG”) and will exit its Heritage Brands business.” The purchase price for the transaction is roughly $220 million.

As a result of the transaction, the Company now projects that revenue for the full year 2021 will increase 22% to 24% (increase 19% to 21% on a constant currency basis) as compared to 2020.

We are very pleased with our first quarter 2021 results, which significantly exceeded our expectations, and reflect our team’s strong execution of our accelerated recovery priorities across our businesses globally, ” said Stefan Larsson, Chief Executive Officer, “Looking ahead, we are increasing our full year outlook despite continued uncertainty in the macro environment, as we navigate through the pandemic and related supply chain disruptions. We are confident in our ability to drive towards an accelerated recovery in a way that positions PVH closer to the consumer than any time before.”

2021 Highlights

  • Q1 total company net revenue $2.079B – up 55% YOY
  • Q1 Tommy Hilfiger revenue $1.054B – up 63% YOY
  • Q1 Calvin Klein revenue $785.2M – up 65% YOY
  • Q1 GAAP $1.38 EPS – Non-GAAP $1.92 EPS
  • Projects 2021 revenue will increase 22% to 24% (19% to 21% on a constant currency basis) VS. increase 24% to 26% (21% to 23% on a constant currency basis) LY
  • Reiterates Q2 2021 revenue increase of 24% to 36% (29% to 31% on a constant currency basis) VS. LY
  • GAAP projected $6.60 EPS for 2021 full year VS. previous projected $5.50 EPS
  • Non-GAAP projected $6.50 EPS
  • GAAP projected Q2 $0.79 to $0.82 EPS is unchanged
  • Non-GAAP projected Q2 $1.15 to $1.18 EPS
  • GAAP projected Q2 tax rate of 44% to 46% is unchanged
  • GAAP projected full year tax rate of 17.5% to 19%
  • Intends to reinstate dividend

Larsson stated that the corporation’s “focus on the consumer, while leaning into our core strengths, combined with a more demand and data-driven way of driving profitable market share growth, forms a very strong foundation for long-term sustainable growth.

Sources: PVH Corp. updates 2021 full year outlook, PVH 2021 first quarter earnings
Photo Credit: PVH Corp.

PVH is one of the world’s largest and most admired fashion companies, connecting with consumers in over 40 countries. Our global iconic brands include Calvin Klein, TOMMY HILFIGER and our Heritage Brands. Our 140-year history is built on the strength of our brands, our team and our commitment to drive fashion forward for good. That’s the Power of Us. That’s the Power of PVH.

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