PVH Corp. Earnings Call: Positive Outlook Amid Challenges

PVH Corp ((PVH)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for PVH Corp. reflected a generally positive sentiment, with strong revenue performance and strategic marketing efforts driving brand engagement. The company reported operational improvements, particularly in Calvin Klein, although challenges such as gross margin pressures and macroeconomic uncertainties due to increased tariffs were noted. Overall, the sentiment was slightly positive, buoyed by strong brand performance and strategic initiatives.

Revenue Growth Exceeds Expectations

PVH Corp. reported a 4% increase in revenue on a reported basis and a 1% increase on a constant currency basis, surpassing their guidance for the second quarter of 2025. This growth highlights the company’s robust performance despite challenging market conditions.

Calvin Klein and Tommy Hilfiger Performance

Calvin Klein experienced a 5% increase in revenue as reported and a 3% increase in constant currency, while Tommy Hilfiger saw a 4% increase in revenue as reported and remained flat in constant currency. These results underscore the strong consumer demand for PVH’s flagship brands.

Innovative Marketing Campaigns

The Bad Bunny campaign for Calvin Klein and the Formula One partnership for Tommy Hilfiger significantly boosted consumer engagement and sales growth. These initiatives led to notable increases in brand awareness and category performance, showcasing the effectiveness of PVH’s strategic marketing efforts.

Direct-to-Consumer Improvements

Direct-to-consumer revenue was flat in constant currency, marking a sequential improvement from the first quarter, particularly in the Americas and Europe. This indicates progress in PVH’s efforts to enhance its direct-to-consumer channels.

Operational Improvements at Calvin Klein

Calvin Klein’s global product capabilities in New York showed sequential improvements in operational challenges, securing margin improvements for Spring 2026. This progress is a positive sign for the brand’s future profitability.

Gross Margin Decline

The gross margin decreased by 240 basis points compared to the previous year, impacted by tariffs and other factors such as higher promotions and shipment mix. This decline highlights the challenges PVH faces in maintaining profitability amid external pressures.

Uncertain Macro Environment and Tariffs

Newly announced tariffs effectively doubled, creating uncertainty and a projected $70 million unmitigated impact to EBIT, affecting overall earnings. This uncertainty poses a significant challenge for PVH moving forward.

Asia Pacific Revenue Decline

Revenue in the Asia Pacific region declined by 3% in constant currency due to a choppy consumer environment, particularly in China, despite sequential improvement. This decline underscores the challenges PVH faces in stabilizing its performance in this key market.

Forward-Looking Guidance

During the earnings call, PVH Corp. reported a better-than-expected performance, surpassing its guidance on both the top and bottom lines. The company reaffirmed its full-year earnings guidance and raised its reported revenue guidance despite challenges like increased tariff rates. Strategic investments in marketing are expected to boost brand visibility, with Europe showing positive direct-to-consumer growth and North America achieving double-digit EBIT margins. The Asia Pacific region exceeded plans and began stabilizing key markets, providing a positive outlook for the future.

In summary, PVH Corp.’s earnings call presented a balanced yet positive outlook, driven by strong brand performance and strategic initiatives. Despite challenges such as gross margin pressures and macroeconomic uncertainties, the company demonstrated resilience and adaptability. The reaffirmation of full-year guidance and strategic investments in marketing provide confidence in PVH’s ability to navigate future challenges and capitalize on growth opportunities.