A Look at PVH Corp’s 2Q17 Revenue Drivers



Evaluating Tommy Hilfiger’s performance

Tommy Hilfiger, which accounted for 43.0% of PVH Corp’s (PVH) 2Q17 top line, recorded a 4.0% YoY (year-over-year) rise in sales.

Tommy Hilfiger’s international revenues rose 9.0% YoY to $492.0 million during the quarter. Sales comps (comparables) rose 6.0% as the brand witnessed continued momentum in Europe and Asia.

North America sales, however, continued to fall 2.0% to $400.0 million, mainly due to the fall in revenue from the licensing of Tommy Hilfiger North America womenswear wholesale business to G-III Apparel Group (GIII). Sales comps in the region remained flat during the quarter.

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Evaluating Calvin Klein’s performance

Calvin Klein accounted for 38.0% of PVH’s 2Q17 sales, rising 8.0% YoY during the quarter. Sales growth was driven completely by strength in international markets. North America sales fell 1.0% during the quarter. The Mexico deconsolidation and a 2.0% fall in North America sales comps were responsible for the fall in the North America business.

International revenues rose 20.0% YoY to $394.0 million, fueled by solid performances in the wholesale as well as retail channels. International same-store sales rose 6.0% during the quarter, recording solid performances in China and Japan.

Following the strong performances of its two brands, PVH’s management raised the outlook for fiscal 2017 for the second time in a row. Read Part 5 to know more about the revised guidance. In the next part of this series, we’ll look at the company’s bottom-line performance during 2Q17.

ETF investors seeking to add exposure to PVH can consider the iShares Morningstar Mid-Cap Value (JKI), which invests 0.64% of its portfolio in PVH.


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