PVH Corp.’s efforts to streamline its operations in the last several months by selling several of its Heritage Brand companies are paying off — to the tune of a 46% increase in revenue for the second quarter of 2021, the company said on Tuesday (Aug. 31).
A 41% increase in Tommy Hilfiger sales compared to the same time in 2020 and a 56% spike in Calvin Klein sales from one year earlier, combined with a 37% jump in PVH’s Heritage Brands, added up to $2.3 billion in revenue for the three-month period.
“We delivered another quarter of high-quality growth and strong performance above our guidance,” said CEO Stefan Larsson in the company announcement. “This was driven by the disciplined execution of our key strategic priorities, led by Calvin Klein and Tommy Hilfiger and our international markets, focused on product strength and winning in the marketplace, super-charged by eCommerce.”
Larsson said the recovery from COVID-19 “has been faster than expected,” and that PVH continues to position itself for long-term, sustainable growth. PVH projects a total 2021 revenue increase of 26% to 28% from 2020 and a third-quarter revenue spike of 11% to 13% compared to the same time a year ago.
The jump in the company’s Tommy Hilfiger business includes a 40% increase in Tommy Hilfiger International revenue and a 45% increase in Tommy Hilfiger North America revenue. Calvin Klein was boosted by a 47% increase in Calvin Klein International revenue and a 75% increase in Calvin Klein North America revenue.
PVH’s international growth, which “significantly exceeded” 2019 levels, was primarily driven by sales in Europe after 2020 saw extensive temporary store closures. Digital sales grew about 35% from 2020 and direct-to-consumer revenue was up 19% in Q2 compared to one year earlier.
In June, PVH sold the Izod, Van Heusen, Arrow and Geoffrey Beene labels to Authentic Brands for $220 million. PVH also has intimates and underwear brands Warner’s and True & Co. The company completed the sale of its Speedo North America business in April 2020.