PVH Corp (0KEQ.L) Q2 2024 Earnings Report

PVH Corp reported QQ2 2024 revenue of $2.0743 billion, down 16.69% year-over-year, with gross profit of $1.2459 billion and a gross margin of 60.06%. Operating income was $162.6 million (operating margin 7.84%), and net income stood at $158.0 million (net margin 7.62%), yielding an earnings per share of $2.83 (diluted $2.80). All three primary profitability metrics trended lower versus the prior-year period: revenue (-16.7%), gross profit (-17.3%), operating income (-54.1%), net income (-41.9%), and EPS (-38.6%) on a YoY basis. Sequentially (QoQ), revenue showed flat growth (0.0%). Despite a softer top line, PVH generated robust operating cash flow of $292.4 million and free cash flow of $255.8 million for the quarter, supporting a resilient liquidity position with cash and cash equivalents of $610 million and net debt of approximately $2.949 billion. The company carried total debt of about $3.56 billion and total equity of roughly $5.19 billion, implying a balanced yet leverage-heavy capital structure. The gross margin remains a meaningful strength (≈60%), underscoring pricing power and product mix resilience, while operating margin compression reflects elevated SG&A and/or category mix pressures in a challenging consumer backdrop. With management guidance unavailable in the provided data, the outlook hinges on ongoing demand normalization, inventory discipline, channel mix (Wholesale vs. Direct-to-Consumer), and cost-control execution. The quarter illustrates PVH’s ability to generate meaningful FCF in a mid-cycle environment, a positive signal for capital allocation and deleveraging over time, but it also highlights the need for top-line stabilization to sustain earnings momentum.