PVH Corp. has recently released its 2022 Outlook. Stefan Larsson, Chief Executive Officer, said, “As we look ahead, we are confident in the strength and momentum in our business and our ability to drive strong underlying top and bottom-line growth by leaning into what is within our control, despite the significantly increased macroeconomic and geopolitical volatility over the last few months, including the war in Ukraine, the impact of the global pandemic, and the inflationary pressures we see across our regions. We will successfully navigate these headwinds in 2022, and we will do it through driving brand and product relevance with our two iconic global brands, Calvin Klein and TOMMY HILFIGER, super-charging digital, further improving our consumer engagement, and driving efficiencies while investing in our strategic growth areas.”
2022 Full-Year Outlook:
- Revenue in 2022 is projected to increase 2% to 3% (increase 6% to 7% on a constant currency basis) as compared to 2021, which reflects (i) a 2% reduction resulting from the Heritage Brands transaction and the exit from the Heritage Brands Retail business and (ii) a 2% reduction resulting from the Company’s decision to temporarily close its stores and pause commercial activities in Russia and Belarus, as well as a reduction in wholesale shipments to Ukraine as a result of the war.
- The Company currently projects that the 2022 operating margin will be approximately 10%.
- The Company currently projects that 2022 earnings per share will be approximately $9.00 compared to $13.25 on a GAAP basis and $10.15 on a non-GAAP basis in 2021. The Company currently expects that 2022 earnings per share will be negatively impacted by (i) approximately $0.70 per share related to foreign currency translation, primarily due to the stronger U.S. dollar against the euro and (ii) approximately $0.65 per share related to the temporary closure of the Company’s stores and pause of commercial activities in Russia and Belarus, as well as the reduction in wholesale shipments to Ukraine resulting from the war.
- Net interest expense in 2022 is projected to decrease to approximately $90 million compared to $104 million in 2021 primarily due to the impact of voluntary debt repayments made in 2021.
The Company estimates that the 2022 effective tax rate will increase as compared to 2021 and will be in a range of 29% to 30%.