PVH Corp. Relies Heavily on Tommy Hilfiger and Calvin Klein Brands

PVH Corp. has recently released its 10-K report, providing a comprehensive overview of its business operations and financial performance. The company operates through six segments, including Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail. PVH designs, markets, and retails a wide range of apparel and accessories under various owned, licensed, and private label brands. Notably, the company's global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over 90% of its revenue in each of the last three years.

In 2023, PVH reported revenue of $9.2 billion, with over 70% of its revenue generated outside of the United States. The company has been listed on the New York Stock Exchange for over 100 years, emphasizing its long-standing presence in the market. PVH introduced the PVH+ Plan at its April 2022 Investor Day, outlining a multi-year strategic plan to elevate Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands globally.

The 10-K report also highlights the impact of various geopolitical and macroeconomic events on PVH's financials. For instance, the war in Ukraine led to net pre-tax costs of $43 million in 2022, as the company made the decision to exit its Russia business and experienced a reduction in shipments to customers in Ukraine. Additionally, the war in Ukraine and the Israel-Hamas conflict, along with attacks on commercial shipping vessels in the Red Sea, have caused disruptions in global supply chains, impacting PVH's inventory and sales volume.

Inflationary pressures negatively impacted PVH's revenue and earnings in 2023 and 2022, leading the company to implement price increases to mitigate higher costs. The COVID-19 pandemic significantly impacted PVH's business in 2022 and 2021, resulting in temporary store closures, supply chain disruptions, and reduced consumer demand for apparel and related products. However, the report states that the pandemic did not have a significant impact on the company in 2023, and it does not expect any impact in 2024.

PVH's 10-K report also discusses the actions and transactions that have impacted its results of operations and the comparability among the years. These include the sale of certain businesses, cost-saving initiatives, and noncash goodwill impairment charges, among others.

Today the company's shares have moved -22.4% to a price of $108.5. Check out the company's full 10-K submission here.

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