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PVH Corp Advances With Strong Brand Performance And Strategic Execution

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Published On January 1, 1970 12:00 AM UTC
PVH Corp Advances With Strong Brand Performance And Strategic Execution

The stock price of PVH Corp. (NYSE: PVH) saw a notable increase, rising 17.01% to $75.64 as of the most recent update. The stock-price momentum is driven by the release of its fourth-quarter and full-year 2024 financial results.

Strong Growth Led by Iconic Brands

PVH showed resilience and strategic growth, anchored by its internationally renowned brands, TOMMY HILFIGER and Calvin Klein. The firm completed the year strongly thanks to the PVH+ Plan’s focused implementation, and it is now in a great position for long-term growth in 2025.

PVH Corp. reported higher-than-expected sales in constant currency in 2024 and exceeded its non-GAAP profits per share (EPS) projection. The business earned double-digit non-GAAP EBIT margins and record gross margins.

Despite a 6% drop in full-year revenue to $8.653 billion and a 5% drop in quarterly sales to $2.372 billion, non-GAAP profits per share (EPS) rose to $11.74 in 2024 from $10.68 in 2023.

Strategic Perspective and Development Projects

By fortifying its brand-building consumer approach, the corporation hopes to achieve long-term sustainable growth. Maintaining a double-digit EBIT margin in North America, increasing customer interaction across a diverse business portfolio in Asia-Pacific, and reviving growth in its Fall 2025 order books in Europe are the company’s goals.

Stock Repurchases Strengthens Shareholder Trust

In 2024, PVH Corp. bought back $500 million worth of shares, demonstrating its faith in its long-term capabilities and sound financial standing. In order to take advantage of advantageous valuation opportunities and provide value to shareholders, the firm has also declared its plan to acquire an additional $500 million worth of shares under Accelerated Share Repurchase (ASR) agreements in 2025.

The business repurchased 2.4 million shares for $247 million in the fourth quarter alone, increasing the total number of shares repurchased for the year to 4.7 million, as part of its PVH+ Plan commitment to giving investors their money back.

In order to enable additional repurchases, PVH Corp. also intends to sign ASR contracts with one or more dealers in April 2025. The company’s current $5 billion stock repurchase authorization, of which $1.8 billion is still available as of February 2, 2025, will be used to carry out these activities.

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