• Second quarter
  • Revenue: Increased 4% to $2.167 billion compared to the prior year period and exceeded guidance of a low single digit increase. Increased 1% on a constant currency basis in line with guidance of flat to increase slightly on a constant currency basis.
  • EPS:
    • GAAP basis: $4.63. Results include $45 million of pre-tax restructuring costs and other tax related impacts, which have been excluded from the Company’s results on a non-GAAP basis.
    • Non-GAAP basis: $2.52 exceeded guidance of $1.85 to $2.00.
• Full year outlook
  • Revenue: Raising outlook to increase slightly to up low single-digits compared to flat to increase slightly previously. Reaffirms outlook of flat to increase slightly on a constant currency basis.
  • Operating margin: Reaffirms outlook of approximately 8.5% on a non-GAAP basis inclusive of the impact of recently announced increases in tariffs compared to prior guidance.
  • EPS: Reaffirms outlook of a range of $10.75 to $11.00 on a non-GAAP basis. Outlook includes:
    • an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately $1.15 per share compared to approximately $1.05 previously and a partially offsetting impact of planned mitigation actions
    • an estimated positive impact of approximately $0.45 per share related to foreign currency translation compared to approximately $0.10 previously

New York, NY — PVH Corp.  reported its 2025 second quarter results and 2025 outlook.

Stefan Larsson, Chief Executive Officer, commented, “In the second quarter, 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. 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.”

Larsson continued, “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. 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.”

Zac Coughlin, Chief Financial Officer, said, “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.”

Second Quarter Review:

• Revenue of $2.167 billion increased 4% compared to $2.074 billion in the prior year period (increased 1% on a constant currency basis).

  Revenue performance for the Company’s reportable segments in the second quarter compared to the prior year period was as follows:

  • EMEA revenue increased 3% compared to the prior year period (decreased 3% on a constant currency basis). 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.
  • Americas revenue increased 11% compared to the prior year period driven by growth in the wholesale business, with flat revenue in the direct-to-consumer business. The increase in wholesale revenue included the transition of previously licensed women’s product categories in-house and the impact of a shift in the timing of wholesale shipments from the second half into the first half of this year.
  • APAC revenue decreased 1% compared to the prior year period (decreased 3% on a constant currency basis) driven by a decrease in the 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.
  • Licensing revenue decreased 3% compared to the prior year period due to the transition of certain previously licensed women’s product categories in-house.

    Revenue performance for the Company’s global brand businesses in the second quarter compared to the prior year period was as follows:

  • Tommy Hilfiger revenue increased 4% compared to the prior year period (was flat on a constant currency basis).
  • Calvin Klein revenue increased 5% compared to the prior year period (increased 3% on a constant currency basis).

    Revenue performance for the Company’s directly operated channels in the second quarter compared to the prior year period was as follows:

  • Direct-to-consumer revenue increased 4% compared to the prior year period (was flat on a constant currency basis).
    • Owned and operated store revenue increased 4% compared to the prior year period (was flat on a constant currency basis). On a constant currency basis, growth in EMEA was offset by declines in Americas and APAC primarily due to the challenging consumer environment in those regions.
    • Owned and operated digital commerce revenue increased 3% compared to the prior year period (was flat on a constant currency basis). On a constant currency basis, growth in Americas and APAC was offset by a decline in EMEA.
  • Wholesale revenue increased 6% compared to the prior year period (increased 2% on a constant currency basis) primarily driven by the increase in Americas partially offset by the decrease in EMEA as discussed above.
• Gross margin was 57.7% compared to 60.1% in the prior year period. The decrease reflects the impacts of (i) an increased promotional environment, (ii) the gross margin differential due to the transition of previously licensed women’s product categories to an in-house wholesale business, (iii) an unfavorable shift in channel mix, (iv) increased tariffs on goods coming into the U.S. and (v) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays.
• Inventory increased 13% compared to the prior year period reflecting an improvement as compared to the 19% increase in the first quarter of 2025. The increase was primarily due to (i) a purposeful investment in core product inventory to improve overall availability, (ii) an increase in inventory to support the projected sales growth in the third quarter, and (iii) a 1% impact of increased tariffs.
• Earnings before interest and taxes (“EBIT”) on a GAAP basis was $133 million, inclusive of an $8 million positive impact attributable to foreign currency translation, compared to $174 million in the prior year period. EBIT on a GAAP basis included costs of $45 million in the second quarter and costs of $15 million in the prior year period described under the heading “Non-GAAP Exclusions” later in this release. EBIT on a non-GAAP basis for these periods excluded these amounts.

  EBIT on a non-GAAP basis was $178 million, inclusive of the $8 million positive impact attributable to foreign currency translation, compared to $189 million in the prior year period. The decrease was more than explained by the gross margin decline discussed above. The Company continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

• Earnings per share (“EPS”)
  • GAAP basis: $4.63 compared to $2.80 in the prior year period.
  • Non-GAAP basis: $2.52 compared to $3.01 in the prior year period. Previous guidance was $1.85 to $2.00.

    EPS on both a GAAP and a non-GAAP basis in the prior year period included a tax benefit of approximately $0.55 per share related to the favorable settlement of a multi-year audit in an international jurisdiction.

    EPS on both a GAAP and a non-GAAP basis for the second quarter of 2025 includes the positive impact of $0.16 per share related to foreign currency translation.

    EPS on a GAAP basis for these periods also includes the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for these periods excluded these amounts.

• Interest expense increased to $22 million from $19 million in the prior year period.
• Effective tax rate was (101.6)% on a GAAP basis compared to (2.1)% in the prior year period. The effective tax rate was 21.8% on a non-GAAP basis compared to (0.1)% in the prior year period.
  • The effective tax rate on a GAAP basis for the second quarter of 2025 included the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges that were recorded in the first quarter of 2025, which are non-deductible for tax purposes and factored into the Company’s annualized effective tax rate. The effective tax rate on a non-GAAP basis for the second quarter of 2025 excludes this impact.
  • The effective tax rate on a GAAP and non-GAAP basis for the prior year period included a tax benefit related to the favorable settlement of a multi-year audit in an international jurisdiction.

2025 Outlook:

The Company’s 2025 outlook reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $70 million 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.

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.

Full Year 2025 Guidance

• Revenue: Projected to increase slightly to low single-digits compared to flat to increase slightly previously. Reaffirming outlook of flat to increase slightly on a constant currency basis.

• Operating margin: Reaffirming 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.

• EPS: Reaffirming outlook of 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.

  The 2025 EPS projection includes:

  • an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately $1.15 per share compared to approximately $1.05 previously and a partially offsetting impact of planned mitigation actions
  • the estimated positive impact of approximately $0.45 per share related to foreign currency translation compared to approximately $0.10 previously

    EPS on a GAAP basis for 2024 included the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for 2024 excluded these amounts.

• Interest expense is projected to increase to approximately $80 million compared to $67 million in 2024, primarily due to the impact of funding the accelerated share repurchase agreements discussed above. Previous guidance was approximately $85 million.

• Effective tax rate is projected to be approximately 22% on a non-GAAP basis.

Third Quarter 2025 Guidance

• Revenue: Projected to be flat to increase slightly compared to the third quarter of 2024 (decrease slightly on a constant currency basis).

• EPS: Projected to be in a range of $2.35 to $2.50 on a non-GAAP basis compared to $2.34 on a GAAP basis and $3.03 on a non-GAAP basis in the third quarter of 2024.

  The third quarter 2025 EPS projection includes:

  • an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately $0.25 per share and a partially offsetting impact of planned mitigation actions
  • the estimated positive impact of approximately $0.10 per share related to foreign currency translation

    EPS on a GAAP basis for the third quarter of 2024 included the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for the third quarter of 2024 excluded these amounts.

• Interest expense is projected to increase to approximately $22 million compared to $16 million in the third quarter of 2024 primarily due to the impact of funding the accelerated share repurchase agreements discussed above.

• Effective tax rate is projected to be approximately 25% on a non-GAAP basis.

The Company is unable to project full year 2025 operating margin and full year and third quarter 2025 EPS and effective tax rate on a GAAP basis without unreasonable efforts as there are significant uncertainties with respect to the amount and timing of the restructuring costs to be incurred during 2025 in connection with the Growth Driver 5 Actions defined later in this release. As such, the Company is unable to provide a full reconciliation of its full year 2025 operating margin and full year and third quarter 2025 EPS and effective tax rate guidance on a non-GAAP basis to the corresponding measures on a GAAP basis. See Non-GAAP Exclusions below for items recorded in the first and second quarters of 2025.

Please see the section entitled “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail and reconciliations of GAAP to non-GAAP amounts discussed in this section.

Non-GAAP Exclusions:
The discussions in this release that refer to non-GAAP amounts exclude the following:

• Pre-tax restructuring costs totaling $58 million incurred in 2025 consisting principally of severance in connection with the Company’s multi-year initiative announced in 2024 to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization (the “Growth Driver 5 Actions”), of which $13 million was incurred in the first quarter and $45 million was incurred in the second quarter.
• Pre-tax noncash goodwill and other intangible asset impairment charges of $480 million recorded in the first quarter of 2025, which were primarily due to a significant increase in discount rates.
• Pre-tax loss of $28 million recorded in the fourth quarter of 2024 related to the recognized actuarial loss on retirement plans.
• Pre-tax net restructuring costs totaling $24 million incurred in 2024 consisting principally of severance and the gain on the sale of a warehouse and distribution center in the third quarter in connection with the Growth Driver 5 Actions, of which $15 million was incurred in the second quarter, $3 million was incurred in the third quarter, and $6 million was incurred in the fourth quarter.
• Pre-tax costs of $51 million incurred in the third quarter of 2024 in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of future payments to Mr. Hilfiger.
• Pre-tax gain of $10 million recorded in the first quarter of 2024 in connection with the Company’s sale of the Heritage Brands women’s intimates business.
• Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item was (i) taxable or tax deductible, in which case the tax effect was taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumed no tax effect.

The Company presents constant currency revenue information, which is a non-GAAP financial measure, because it is a global company that transacts business in multiple currencies and reports financial information in U.S. dollars. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in U.S. dollars with respect to its foreign revenues and can have a significant impact on the Company’s reported revenues. The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into U.S. dollars at the average exchange rates in effect during the comparable prior year period (rather than at the actual exchange rates in effect during the relevant period).

The Company presents non-GAAP financial measures, including constant currency revenue information, as a supplement to its GAAP results. The Company believes presenting non-GAAP financial measures provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of non-recurring and non-operational amounts and the effects of changes in foreign currency exchange rates, as applicable, and (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company believes that investors often look at ongoing operations of an enterprise as a measure of assessing performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding non-recurring and non-operational amounts are also the basis for certain incentive compensation calculations. Non-GAAP financial measures should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The non-GAAP financial measures presented may not be comparable to similarly described measures reported by other companies.

Please see following pages for information related to non-GAAP measures discussed in this release.

PVH CORP.
Reconciliations of Constant Currency Revenue
(In millions)

As a supplement to the Company’s reported operating results, the Company presents constant currency revenue information, which is a non-GAAP financial measure. The Company presents results in this manner because it is a global company that transacts business in multiple currencies and reports financial information in U.S. dollars. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in U.S. dollars with respect to its foreign revenues. Exchange rate fluctuations can have a significant impact on reported revenues. The Company believes presenting constant currency revenue information provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of changes in foreign currency exchange rates and assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance.

The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into U.S. dollars at the average exchange rates in effect during the comparable prior year period (rather than at the actual exchange rates in effect during the relevant period).

Constant currency performance should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The constant currency revenue information presented may not be comparable to similarly described measures reported by other companies.

PVH CORP.
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts