Calvin Klein and Tommy Hilfiger parent PVH Corp. has raised its full-year outlook as its revenue recovers from a slump, though it predicts continued impacts from United States tariffs.
Earnings per share were US$2.52, dropping from $3.01 one year ago but passing Zacks' estimates of $1.97. Revenue last quarter was US$2.17 billion, up 4% year-over-year.
“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,” said PVH CEO Stefan Larsson.
“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.”
Its guidance for fiscal 2025 includes a revenue increase in the low single digits, up from its previous forecast of flat to slight growth. Projected earnings per share are US$10.75-11.00, and the company predicts a $70 million tariff-induced hit to its full-year EBIT.
Both Tommy Hilfiger and Calvin Klein’s revenue grew year-over-year last quarter, up 4% and 5% respectively.
Revenue in the Americas rose by 11%, and Europe, the Middle East, and Africa was up 3%. Asia Pacific revenue sank by 1%, which the company attributed to a challenging consumer environment in China.
The company’s total inventory increased by 13% year-over-year. PVH said it had invested in building up inventory to improve availability, support sales growth later in 2025, and anticipate U.S. tariffs.
EBIT was US$178 million, falling from $189 million one year ago. This was due to a slump in gross margin from 60.1% to 57.7%, PVH said, which was driven by an increased promotion environment, U.S. tariffs, and freight costs and discounts used to address Calvin Klein delivery delays.
The company’s revenue dropped by 6% across its 2024 fiscal year, but it has shown signs of recovery. PVH has bested Zacks' estimates on both earnings per share and revenue for four consecutive quarters.
PVH Corp.’s (NYSE: PVH) share price surged 6.7% to US$88.00 in after-hours trading, following a close at $82.49. Its market capitalisation is $3.97 billion.
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