PVH saw its revenue increase 4% to $2.167bn in Q2 (ending 3 August 25) compared to the prior year period when it was $2.074bn.
PVH reports positive Q2
Its EBIT on a GAAP basis was $133m, inclusive of an $8m positive impact attributable to foreign currency translation, compared to $174m in the prior year period.
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PVH’s net income for Q2 was $224.2m compared to $158m for the same period last year.
Tommy Hilfiger’s revenue increased 4% compared to the prior year period (was flat on a constant currency basis) and Calvin Klein’s revenue increased 5% compared to the prior year period (increased 3% on a constant currency basis).
CEO Stefan Larsson explained: “In the second quarter (Q2), through our disciplined execution of our PVH+ Plan, we continued to lean further into Calvin Klein and Tommy Hilfiger’s iconic brand strength and we grew revenue 4% with better-than-expected non-GAAP EBIT margins.
“For both brands, our stepped-up actions during the quarter to strengthen our brand-building flywheel across product, marketing and marketplace execution gained traction. Calvin Klein showed continued growth in underwear and fashion denim which was driven by the biggest product innovation so far, amplified by mega talent like Bad Bunny.
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By GlobalData“Tommy Hilfiger’s summer season was successfully amplified by the strong campaign around the summer’s biggest blockbuster film: F1® The Movie, and the partnership with the US SailGP racing team.”
Chief financial officer Zac Coughlin added: “For the second quarter, we delivered on our plan through our focus on next level execution of the PVH+ Plan. We delivered revenue growth and earnings per share above our guidance through both better gross margin performance and our actions to drive operating efficiencies.
“We are reaffirming our full year non-GAAP earnings guidance despite ongoing macroeconomic uncertainty, including the evolving global trade landscape, while also increasing our investment in brand building initiatives.”
From a regional perspective the Americas performed the best with a revenue increase of 11%. This was driven by growth in the wholesale business, with flat revenue in the direct-to-consumer business.
EMEA saw its revenue increase 3% compared to the prior year period (decreased 3% on a constant currency basis). Its growth in the direct-to-consumer business was more than offset by a decline on a constant currency basis in the wholesale business, primarily due to the impact of a shift in the timing of wholesale shipments from the second quarter into the first quarter of this year.
However, APAC revenue declined 1% compared to the same period last year and decreased 3% on a constant currency basis due to a decrease in its wholesale business. Revenue in the direct-to-consumer business was flat on a constant currency basis despite a challenging consumer environment in the region, particularly in China.
Overall the direct-to-consumer revenue increased 4% compared to the prior year period (it was flat on a constant currency basis) and wholesale revenue increased 6% compared to the prior year period (it had a 2% increase on a constant currency basis).
PVH 2025 outlook
For the full year PVH has raised its outlook to increase slightly to up low single-digits compared to flat to increase slightly previously. It has also reaffirmed its outlook of flat to increase slightly on a constant currency basis.
In terms of operating margin it has reaffirmed its outlook of approximately 8.5% on a non-GAAP basis compared to 8.9% on a GAAP basis and 10.0% on a non-GAAP basis in 2024.
It has also reaffirmed its outlook for EPE with a range of $10.75 to $11.00 on a non-GAAP basis compared to $10.56 on a GAAP basis and $11.74 on a non-GAAP basis in 2024.
PVH did note that its 2025 outlook reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the US, including an approximately $70m unmitigated impact to full year 2025 EBIT, or approximately $1.15 per share, and a partially offsetting impact of planned mitigation actions which will primarily take effect in the second half of 2025.
It added that there is significant uncertainty with respect to global trade policies, including the potential for increases in tariffs, and the related impact on the broader macroeconomic environment and, as such, the Company’s 2025 outlook could be subject to significant material change.
In saying this Larsson maintained that “looking ahead, coming into the important fall season, both brands are geared up with a strong category focus, more innovation in key product franchises, and cut-through full funnel campaigns with a strong line-up of globally relevant talent”.
He continued: “We are again stepping up the momentum we drove in the second quarter as we remain relentlessly focused on the multi-year journey to build Calvin Klein and Tommy Hilfiger into the most desirable brands in the world.
“We continue to expect 2025 to mark our return to growth, and we are raising our reported revenue guidance and reaffirming our non-GAAP earnings outlook for the full year, reflecting our confidence in our ability to execute with impact despite the uncertain global macroenvironment.”
