What happened
Shares of fashion purveyor PVH Corp (PVH 2.61%) weren't looking too sharp on Wednesday. The company's stock fell by almost 11% on the day, thanks to a combination of a revenue miss in its latest quarter and the departure of a top executive.
So what
After market hours on Tuesday, PVH reported that it earned just over $2.1 billion in revenue in its second quarter, 8% lower than in the corresponding period of 2021. Non-GAAP (adjusted) net income fell much more dramatically, tumbling at a 29% clip to land at just under $140 million ($2.08 per share).
This meant a mixed quarter for PVH, as analysts tracking the stock were collectively expecting a loftier top line at $2.21 billion, yet a thinner adjusted net income figure of $2 per share.
PVH attributed its declines largely to struggles in North America. It quoted CEO Stefan Larsson as saying that "We continued to execute very well in Europe and Asia, where countries not currently impacted by Covid are performing significantly above pre-pandemic levels, while in North America we continue to be impacted by ongoing supply chain pressures."
Now what
Speaking of Larsson, he is PVH's newly installed leader. Also after market hours on Tuesday, the company announced that he has been named interim CEO, since his predecessor Trish Donnelly is leaving "to pursue other opportunities." PVH added that it intends to split the current CEO position into two roles, one heading the Americas region, and one responsible for providing "a global brand leadership role" for the anchor Calvin Klein line.
Meanwhile, the company cut its guidance for the entirety of 2022. It now believes that it will earn around $8 per share for the year in adjusted net income, down from the previously anticipated $9. That new figure is notably under the average analyst estimate of $8.68.
