US' PVH Corp's Q2 revenue rises 4%, lifts full-year outlook

The gross margin in Q2 slipped to 57.7 per cent from 60.1 per cent, while inventories rose 13 per cent as the company invested in core product availability and prepared for Q3 demand.

The earnings per share (EPS) came in at $4.63 on a GAAP basis and $2.52 on a non-GAAP basis, beating guidance of $1.85–2.00. EBIT on a non-GAAP basis stood at $178 million, down slightly from $189 million last year, reflecting gross margin pressures from tariffs, higher freight, and promotional activity.

Region-wise, Europe, Middle East, and Africa (EMEA) revenue increased 3 per cent YoY. Americas revenue increased 11 per cent YoY driven by growth in the wholesale business, with flat revenue in the DTC business. Asia Pacific (APAC) revenue decreased 1 per cent YoY driven by a decrease in the wholesale business. Revenue in the DTC business was flat on a constant currency basis despite a challenging consumer environment in the region, particularly in China, PVH said in a press release.

Brand-wise, Tommy Hilfiger’s revenue increased 4 per cent YoY (was flat on a constant currency basis), and Calvin Klein’s rose 5 per cent YoY (increased 3 per cent on a constant currency basis).

Channel-wise, DTC revenue increased 4 per cent compared to the prior year period (was flat on a constant currency basis). Owned and operated store revenue increased 4 per cent compared to the prior year period (was flat on a constant currency basis). Owned and operated digital commerce revenue increased 3 per cent YoY. Wholesale revenue increased 6 per cent YoY (increased 2 per cent on a constant currency basis).

“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. For both brands, our stepped-up actions during the quarter to strengthen our brand-building flywheel across product, marketing and marketplace execution gained traction,” said Stefan Larsson, chief executive officer (CEO) at PVH Corp.

“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 Sail GP racing team,” added Larsson.

For full-year 2025, PVH expects revenue to rise slightly to low single digits, compared to flat-to-slight growth previously. It reaffirmed its operating margin guidance at approximately 8.5 per cent (non-GAAP) and maintained its full-year earnings per share (EPS) outlook at $10.75–$11 (non-GAAP).

This guidance factors in a net negative tariff impact of $1.15 per share, partially offset by mitigation measures, along with a $0.45 per share benefit from favourable foreign currency translation.

For the third quarter (Q3) of FY25, PVH projects revenue to be flat to slightly higher YoY, with EPS expected in the range of $2.35–$2.50 (non-GAAP).

Reiterating its strategic priorities, PVH said it remains focused on enhancing the desirability of its flagship brands Calvin Klein and Tommy Hilfiger by stepping up investments in product innovation, global marketing campaigns, and marketplace execution. The company is also pausing further stock repurchases in 2025, having already completed $561 million in buybacks during the first quarter, added the release.

“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,” said Larsson.

ALCHEMPro News Desk (SG)