05:19 PM EDT, 04/01/2024 (MT Newswires) -- PVH (PVH) late Monday reported flat fiscal fourth-quarter revenue on the back of cautious wholesale customers while the owner of brands like Tommy Hilfiger and Calvin Klein projected top-line weakness this year.

Revenue was unchanged year over year at $2.49 billion, but the metric topped the Capital IQ-polled consensus of $2.42 billion. Adjusted per-share earnings rose to $3.72 for the three months ended Feb. 4 from $2.38 a year earlier, exceeding Wall Street's $3.52 view.

In North America, Calvin Klein's revenue decreased 8% year over year due to a drop in the wholesale business. Tommy Hilfiger's sales increased by 4%. Their combined North American revenue was down 2% as direct-to-consumer growth was more than offset by cautious wholesale customers.

Revenue from PVH's international operations increased 4% as gains in the Asia Pacific region more than offset "a continued challenging macroeconomic environment" in Europe that has particularly impacted the wholesale channel, PVH said.

The stock was plunging 20% in after-market activity.

For the full year, PVH expects revenue to decrease by 6% to 7%, following a 2% uptick reported for 2023. EPS is projected at $10.75 to $11, compared with $10.76 on a GAAP basis and $10.68 on a non-GAAP basis in 2023. The consensus view is normalized EPS of $10.49 on sales of $9.15 billion.

PVH anticipates revenue falling about 11% in the first quarter compared with a year earlier. PVH forecast EPS to rise to $2.15 from $2.14 reported for the first quarter of 2023. Wall Street is expecting non-GAAP EPS of $2.58.

The clothing company is targeting growth in Asia and North America this year, Chief Executive Stefan Larsson said in a statement. The focus in Europe, where the macro landscape has become "more challenged," is on quality of sales, he said.

PVH in 2022 outlined its multi-year strategic plan dubbed PVH+ Plan to drive growth.

"In a tougher macroeconomic backdrop in 2024, we are leaning into the next level of PVH+ Plan execution across the company to create value by increasing quality of sales, driving gross margin improvements and cost efficiencies to deliver significant cash flow and attractive returns for our shareholders," Chief Financial Officer Zac Coughlin said.

Last week, the board approved a $2 billion increase to the stock repurchase program and extended it through July 2028, PVH said late Monday.

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