PVH Issues Q1, FY25 Outlook; Announced $500 Mln Accelerated Share Repurchase Agreements

PVH

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(RTTNews) - While reporting its results for the fourth quarter on Monday, PVH Corp. (PVH) issued outlook for the first quarter and full year 2025. It also announced plans to enter into accelerated share repurchase agreements with one or more dealers to repurchase $500 million of the company's common stock.

The agreements are being entered into under the company's existing $5.0 billion stock repurchase authorization, of which $1.8 billion was available for share repurchases as of February 2, 2025, the end of its most recent fiscal year. The company intends to enter into the agreements in the coming days.

This ASR equates to a repurchase of approximately 7.7 million shares of the company's common stock based on the closing stock price on March 31, 2025, which represents approximately 14% of the company's weighted average diluted shares outstanding during the fourth quarter of its 2024 fiscal year.

The company expects to use a combination of approximately $350 million of cash on hand and up to $150 million short-term debt to finance the ASR. As a result of its strong cash flow generation, the company expects to repay this short-term debt by the end of fiscal year 2025, resulting in debt levels ending the year in-line with fiscal year-end 2024.

For the full year 2025, the company expects revenues to be flat to increase slightly compared to 2024. Adjusted earnings per share is projected to be in a range of $12.40 to $12.75.

For the first quarter, revenue is projected to be flat to decrease 2% compared to the first quarter of 2024. Adjusted earnings per share is projected to be in a range of $2.10 to $2.25.