Stefan Larsson is feeling positive. 

Tommy Hilfiger and Calvin Klein powered through an uncertain holiday season, pushing PVH Corp. to better-than-expected fourth-quarter sales gains with strength across the globe.

That counts as a proof point for Larsson, who leads the corporate as chief executive officer and laid out his PVH+ strategic plan almost a 12 months ago. 

Larsson told WWD that the plan — which starts with crucial products and backs them up with a 360-degree push for consumer engagement — has brought a recent sort of focus to the brands and that it’s showing up within the firm’s financial results.

“We got here into the vacation season and the tip of the 12 months mindful of the unprecedented combination of macro challenges and our consumer held up,” Larsson said. 

PVH, like the remainder of fashion, has been contending with still-high inflation, the specter of recession and a generally unsettled consumer world. 

Despite that, the group turned in solid underlying growth and Larsson said, “We’re going into 2023 with strong momentum that we proceed to construct on. The exciting part is seeing each Calvin and Tommy and all three regions delivering.” 

Bottom-line comparisons were difficult given the push retail saw in 2021 when consumers were staying near home, had money to spend and provide chain troubles gave stores a way of scarcity. 

PVH’s fourth-quarter net income fell to $138.7 million from $390.8 million a 12 months earlier. Adjusted earnings per share also fell, to $2.38 from $2.84 a 12 months ago, but inched past the $2.37 projected by analysts. 

Nevertheless, the topline got here in much stronger than expected. 

Revenues for the quarter ended Jan. 29 rose 2 percent to $2.5 billion from $2.4 billion a 12 months earlier, which included a 1 percent reduction attributable to the war in Ukraine and translated into an overall increase of 8 percent in constant currencies. 

Analysts had PVH penciled in for a 2.5 percent revenue decline. 

Tommy Hilfiger revenues increased 3.4 percent to $1.3 billion, up 10 percent in constant currencies. Calvin Klein advanced 2.9 percent to $1 billion, up 8 percent in constant currencies.

Investors approved and sent shares of the corporate up 9.1 percent to $80.33 in after-hours trading on Monday. 

“We all know where we’re going, we know the way we are going to get there and we’ve made great progress in the primary 12 months of execution” of the PVH strategic plan, Larsson said. 

The plan has several moving parts, but really zeros in on hero products — crucial pieces in a consumer’s wardrobe — and pushes them to the fore with marketing that links big names with key categories. 

Think Blackpink’s Jennie Kim for Calvin Klein underwear or the brand’s latest ambassador, BTS’ Jung Kook. Tommy Hilfiger’s efforts include high-profile price with Shawn Mendes. 

Larsson pointed to Michael B. Jordan’s appearance on “Jimmy Kimmel Live!,” which featured Calvin Klein and drove 1.3 billion impressions in 24 hours. 

The CEO said that exposure  — and fourth-quarter sales gains — come from connecting brand and product and placing them in the suitable context for the buyer. 

“We’re going back to the DNA of Calvin and Tommy that made each of those brands collide with culture in a positive way and grow to be iconic globally,” Larsson said. “We’re making that DNA current through product and marketing and the brand experience today. Our long-term vision is to construct Calvin and Tommy into probably the most successful lifestyle brands on the earth after which make PVH certainly one of the best performing brands groups in our sector.”  

For the total 12 months, PVH’s adjusted EPS tallied $8.97 as revenues slipped 1.4 percent to $9 billion. This 12 months, the corporate is projecting growth with EPS of about $10 and a revenue increase of three percent to 4 percent.

The PVH+ plan has the corporate targeting $12.5 billion in revenues by 2025 and Larsson said the targets haven’t modified. 

While there may be some flex room within the goal, the CEO said the strategic plan is supposed to deliver in good times and bad. 

“We’re doing this in a troublesome macro situation,” Larsson said, adding, “So much is inside our control,” including the execution of PVH+. 

There remains to be plenty more work to do — including constructing the capability to make Tommy Hilfiger and Calvin Klein looks for key North American wholesale accounts now that the corporate is taking back its licenses from G-III Apparel Group.

G-III has began to ramp as much as fill the opening left while the PVH brands transition out — signing a license with Nautica and planning to accumulate Donna Karan.

PVH can also be preparing. 

“We began planning for the gradual transition; probably the most material transition will start in early 2026, however the planning for that starts now,” Larsson said, adding that the brands already successfully make women’s product for Europe and Asia.  

Inditex veteran Eva Serrano, who just joined the Calvin Klein brand as global brand president, can be key in that effort. She is a component of Larsson’s management team, which counts several other recent members, including chief financial officer Zac Coughlin, H&M vet David Savman as executive vice chairman and chief supply chain officer and Sara Bland as executive vice chairman and chief strategy officer.