American clothes firm PVH Company has reported stronger-than-expected outcomes for its second quarter (Q2) of fiscal 2025 (FY25), with income rising 4 per cent year-over-year (YoY) to $2.167 billion, surpassing steering of a low single digit enhance. The expansion was led by Americas wholesale and continued momentum at Calvin Klein and Tommy Hilfiger. On a continuing forex foundation, income elevated 1 per cent.
The gross margin in Q2 slipped to 57.7 per cent from 60.1 per cent, whereas inventories rose 13 per cent as the corporate invested in core product availability and ready for Q3 demand.
PVH Corp has reported income rise of 4 per cent YoY to $2.167 billion in of Q2 FY25, pushed by Americas wholesale and model power at Calvin Klein and Tommy Hilfiger.
Non-GAAP EPS was $2.52, above steering.
Whereas gross margin fell to 57.7 per cent, PVH raised its full-year income outlook to low single digits, reaffirmed EPS of $10.75–$11, and projected Q3 EPS of $2.35–$2.50.
The earnings per share (EPS) got here in at $4.63 on a GAAP foundation and $2.52 on a non-GAAP foundation, beating steering of $1.85–2.00. EBIT on a non-GAAP foundation stood at $178 million, down barely from $189 million final 12 months, reflecting gross margin pressures from tariffs, increased freight, and promotional exercise.
Area-wise, Europe, Center East, and Africa (EMEA) income elevated 3 per cent YoY. Americas income elevated 11 per cent YoY pushed by progress within the wholesale enterprise, with flat income within the DTC enterprise. Asia Pacific (APAC) income decreased 1 per cent YoY pushed by a lower within the wholesale enterprise. Income within the DTC enterprise was flat on a continuing forex foundation regardless of a difficult shopper atmosphere within the area, significantly in China, PVH mentioned in a press launch.
Model-wise, Tommy Hilfiger’s income elevated 4 per cent YoY (was flat on a continuing forex foundation), and Calvin Klein’s rose 5 per cent YoY (elevated 3 per cent on a continuing forex foundation).
Channel-wise, DTC income elevated 4 per cent in comparison with the prior 12 months interval (was flat on a continuing forex foundation). Owned and operated retailer income elevated 4 per cent in comparison with the prior 12 months interval (was flat on a continuing forex foundation). Owned and operated digital commerce income elevated 3 per cent YoY. Wholesale income elevated 6 per cent YoY (elevated 2 per cent on a continuing forex foundation).
“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,” mentioned Stefan Larsson, chief govt 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 income to rise barely to low single digits, in comparison with flat-to-slight progress beforehand. It reaffirmed its working margin steering at roughly 8.5 per cent (non-GAAP) and maintained its full-year earnings per share (EPS) outlook at $10.75–$11 (non-GAAP).
This steering elements in a web destructive tariff affect of $1.15 per share, partially offset by mitigation measures, together with a $0.45 per share profit from beneficial overseas forex translation.
For the third quarter (Q3) of FY25, PVH initiatives income to be flat to barely increased YoY, with EPS anticipated within the vary of $2.35–$2.50 (non-GAAP).
Reiterating its strategic priorities, PVH mentioned it stays centered on enhancing the desirability of its flagship manufacturers Calvin Klein and Tommy Hilfiger by stepping up investments in product innovation, world advertising campaigns, and market execution. The corporate can also be pausing additional inventory repurchases in 2025, having already accomplished $561 million in buybacks through the first quarter, added the discharge.
“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,” mentioned Larsson.
