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PVH, parent company of Calvin Klein and Tommy Hilfiger, said that revenues increased 1 per cent year-on-year on a constant currency basis to $2.17 billion in the second quarter of 2025, driven by strong performance in the Americas.
The company raised its full-year outlook, now expecting revenues to increase by a low single-digit percentage (PVH previously forecasted revenues to remain flat). It also reaffirmed its prior outlook of a 8.5 per cent operating margin on Tuesday, which considers the impact of tariffs.
“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,” said CEO Stefan Larsson in a statement. “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 macro environment.”
Gross margin declined from 60.1 per cent last year to 57.7 per cent in 2025, due to an increase in promotional activity, an “unfavourable shift” in channel mix, the licensed women’s categories shifting to an in-house wholesale business, tariffs and higher freight costs.
At Calvin Klein, sales increased 3 per cent, as momentum in underwear and denim was driven by product innovation and campaigns featuring talent such as Bad Bunny. Growth at Tommy Hilfiger was flat on a constant basis and up 4 per cent on a current basis, amplified by its partnership with the US SailGP racing team and its campaign around the F1 film starring Brad Pitt and Damson Idris. PVH said it plans to increase marketing investments across its brands, especially as it looks ahead to the holiday period.
Direct-to-consumer (DTC) sales were flat on a constant basis, while wholesale was up 2 per cent.
In EMEA (Europe, the Middle East and Africa), sales declined 3 per cent on a constant basis due to declines in wholesale — a result of a timing shift across wholesale shipments. In the Americas, sales increased 11 per cent, with a strong e-commerce performance. Asia-Pacific revenues declined 3 per cent, as DTC sales flattened amid a challenging consumer environment in China.
PVH is doubling down on levers such as diversification and brand desirability to mitigate against tariffs. “Tariffs are impacting everyone in our sector, but we have 70 per cent of our revenues coming from our international business, and with that a large diversified supply chain,” said Larsson on the call with investors. “Through the PVH+ Plan that we have executed for a number of years, we are driving relevance for our iconic, beloved brands, product strength, consumer engagement, strength in the marketplace and execution, all to create increasingly profitable growth with pricing power.”
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