We increased our EBIT margins driven by significant gross margin expansion of 250 basis points and we continue to improve inventory productivity with inventory down 12% year‑over‑year.
— Stefan Larsson, CEO
03Detailed Report
PVH
PVH Corp
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
PVH reported Q2 2024 revenue of $2.074 billion (down ~6% y/y), delivered significant gross margin expansion and improved profitability while continuing to reduce inventory and generate strong operating cash flow. Management emphasized a deliberate “quality of sales” approach (reduced low-quality clearance selling) to protect margins, leading to a D2C revenue decline in the quarter but a 250 bps improvement in gross margin (reported non-GAAP gross margin ~60.1%). The company reaffirmed full-year revenue and operating margin guidance, raised non-GAAP EPS guidance to $11.55–$11.80 (benefit largely from a one‑time favorable tax settlement of approximately $0.55 per share) and reiterated a $400 million share‑buyback program. Liquidity is adequate (cash $610M) and the business produced strong free cash flow in the quarter, but leverage remains elevated (net debt ~$2.95B). The report points to continued execution on the PVH+ plan, regional variability (North America resilient; Europe executing quality actions; China/Asia softer) and ongoing focus on cost efficiencies to support margin expansion.
Key Performance Indicators
Revenue
Decreasing
2.07B
QoQ: 0.00% | YoY: -16.69%
Gross Profit
Decreasing
1.25B
60.06% margin
QoQ: 0.00% | YoY: -17.30%
Operating Income
Decreasing
162.60M
QoQ: 0.00% | YoY: -54.13%
Net Income
Decreasing
158.00M
QoQ: 0.00% | YoY: -41.87%
EPS
Decreasing
2.83
QoQ: 0.00% | YoY: -38.61%
Revenue Trend
Margin Analysis
Financial Highlights
Selected Q2 2024 metrics (USD):
- Revenue: $2,074.3 million (reported) — management cited ~6% y/y decline (includes divestiture impacts)
- Gross profit / Gross margin (GAAP): $1,245.9M / ~60.1% (non-GAAP gross margin cited at 60.1%; +250 bps y/y)
- Operating income (GAAP): $162.6M (operating margin ~7.8% GAAP). Management non‑GAAP EBIT: $189M (non‑GAAP operating margin 9.1%; +80 bps y/y)
- Net income (GAAP): $158.0M; EPS (GAAP): $2.83. Non‑GAAP EPS reported: $3.01 (includes ~$0.55 benefit from favorable tax settlement)
- EBITDA (reported line item): $232.4M (quarter)
- Inventory (quarter end): $1,582.8M (down 12% y/y — management highlights improved inventory productivity)
- Cash & cash equivalents: $610.0M
- Total debt: $3,559.3M; Net debt: $2,949.3M
- Current assets / current liabilities: $3,414.4M / $2,760.1M — current ratio ~1.24x
- Simple leverage proxy (approx.): Net debt / (Q2 EBITDA x 4) ≈ 3.2x (quarter EBITDA annualized — approximation)
- Operating cash flow (quarter): $292.4M; Free cash flow (quarter): $255.8M
- Share repurchases in quarter: $31.4M; Full‑year buyback plan: $400M
Notes: Management presents non‑GAAP results for margins and EPS; the 1Q–2Q commentary reflects differences between GAAP and non‑GAAP driven largely by tax settlement and other adjustments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.07B
-16.69%
0.00%
Gross Profit
1.25B
-17.30%
0.00%
Operating Income
162.60M
-54.13%
0.00%
Net Income
158.00M
-41.87%
0.00%
EPS
2.83
-38.61%
0.00%
Key Financial Ratios
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