The revenue of PVH Corp in the fourth quarter of fiscal 2021 has increased 16 per cent to $2.430 billion (increased 20 per cent on a constant currency basis) compared to the prior year period and exceeded guidance, despite continued supply chain and logistics disruptions and the ongoing impacts of the COVID-19 pandemic, particularly the Omicron variant.
In the fourth quarter, revenue through digital channels grew approximately 10 per cent compared to the prior year period. Revenue in the fourth quarter reflected a 5 per cent reduction resulting from the Heritage Brands transaction (as defined under the heading “Non-GAAP Exclusions”) and the exit from the Heritage Brands Retail business. The prior year period was negatively impacted by extensive temporary store closures, with approximately 70% of the Company’s retail stores in Europe and approximately 75 per cent of the company’s stores in Canada closed as a result of the pandemic, PVH Corp said in a press release.
“We delivered strong fourth quarter revenue and earnings above guidance. For 2021, we executed on our accelerated recovery priorities, achieving operating margins that were above 2019 pre-pandemic levels and ahead of our plan, driven by strong gross margin expansion, further positioning PVH to win with the consumer in the ‘new normal’ and deliver sustainable profitable long-term growth,” Stefan Larsson, chief executive officer, said.
The revenue of PVH Corp in the fourth quarter of fiscal 2021 has increased 16 per cent to $2.430 billion (increased 20 per cent on a constant currency basis) compared to the prior year period and exceeded guidance, despite continued supply chain and logistics disruptions and the ongoing impacts of the COVID-19 pandemic, particularly the Omicron variant.
“As we look ahead, we are confident in the strength and momentum in our business and our ability to drive strong underlying top and bottom line growth by leaning in to what is within our control, despite the significantly increased macroeconomic and geopolitical volatility over the last few months, including the war in Ukraine, the impact of the global pandemic, and the inflationary pressures we see across our regions. We will successfully navigate these headwinds in 2022, and we will do it through driving brand and product relevance with our two iconic global brands, Calvin Klein and Tommy Hilfiger, super-charging digital, further improving our consumer engagement, and driving efficiencies while investing in our strategic growth areas,” Larsson added.
The Company is providing its 2022 outlook despite the significant uncertainty due to the war in Ukraine and its broader macroeconomic implications, inflationary pressures globally, as well as the continued uncertainty due to the COVID-19 pandemic. In addition, supply chain and logistics disruptions globally have resulted in and are expected to continue to result in delivery delays to wholesale customers and delayed inventory availability for the Company’s stores and digital commerce businesses. The company’s outlook assumes no material worsening of current conditions. The company’s 2022 results could differ materially from its current outlook.
Revenue in 2022 is projected to increase 2 to 3 per cent (increase 6 to 7 per cent on a constant currency basis) as compared to 2021, which reflects (i) a 2 per cent reduction resulting from the Heritage Brands transaction and the exit from the Heritage Brands’ retail business and (ii) a 2 per cent reduction resulting from the company’s decision to temporarily close its stores and pause commercial activities in Russia and Belarus, as well as a reduction in wholesale shipments to Ukraine as a result of the war.
Fibre2Fashion News Desk (RR)
