Loading...
01/10 16:34
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlighted mixed results: positive earnings per share and digital growth, but challenges in Europe and flat revenue in Asia Pacific. Marketing investments showed promise, yet gross margin declined. Q&A insights confirmed positive trends in Americas and APAC, but management was vague on some specifics. Overall, the reaffirmed guidance and operational improvements are offset by tariff impacts and regional challenges, leading to a neutral sentiment.
Total Revenue $2.3 billion, down less than 1% in constant currency. Reasons: Decline in direct-to-consumer revenue by 1% in constant currency, partially offset by 1% growth in wholesale revenue.
Inventory Levels Up 3% versus last year, including a 2% increase due to tariffs. Reasons: Reflects healthy inventory levels and the impact of tariffs.
Revenue in Europe Declined low single digits in constant currency. Reasons: Tougher consumer backdrop, delays from Calvin global product challenges, and a tough season for cold weather outerwear.
Revenue in Americas Grew 2%. Reasons: Driven by wholesale growth and strong digital channel performance with double-digit growth.
Revenue in Asia Pacific Flat in constant currency. Reasons: Sequential improvement driven by better D2C and wholesale performance, with notable improvements in China, Japan, and Australia.
Gross Margin 56.3%, a decrease of 210 basis points compared to last year. Reasons: Unfavorable impact of tariffs (110 basis points), North American license transitions (50 basis points), and higher promotions.
SG&A Efficiencies Freed up over 200 basis points in SG&A efficiencies over the past 18 months. Reasons: Cost-saving initiatives and operational improvements.
Earnings Per Share (EPS) $2.83. Reasons: Better-than-expected performance despite tariff impacts.
Calvin Klein's new product launches: Introduced new men's Icon Cotton Stretch product franchise and women's Icon Cotton Modal franchise, driving double-digit growth globally. Collaborations with global talents like Bad Bunny, Rosalia, Jalen Green, and Trent Alexander-Arnold enhanced product visibility.
Tommy Hilfiger's campaigns: Launched Hilfiger Racing Club fall brand campaign featuring Claudia Schiffer and Nicholas Hoult. Collaborated with Jisoo from Blackpink for holiday campaigns, enhancing global and regional engagement.
Retail expansion: Opened Calvin Klein flagship stores in Tokyo (Harajuku) and SoHo, New York, strengthening premium positioning.
Asia Pacific growth: Achieved better-than-expected performance with notable improvements in China, Japan, and Australia. Double-11 event drove 15% higher gross merchandise revenue compared to last year.
Supply chain improvements: Continued progress on Calvin Klein global product capability in New York, improving delivery timing and go-in margins for Spring 2026.
Inventory management: Inventory levels up 3% versus last year, reflecting healthy management despite tariff impacts.
PVH+ Plan execution: Focused on building Calvin Klein and Tommy Hilfiger into iconic lifestyle brands through product innovation, marketing, and enhanced consumer experiences.
Leadership changes: Patricia Gabriel appointed as Chief Supply Chain Officer; CFO Zac Coughlin announced departure, with Melissa Stone serving as interim CFO.
Tariffs in North America: The company is facing a significant impact from tariffs in North America, which has negatively affected gross margins and is expected to have a net negative impact on earnings in 2025. The unmitigated impact of tariffs is approximately $65 million, and mitigation actions are still in progress.
Transitory operational challenges: The setup of the Calvin Klein global product capability in New York has created operational challenges, leading to delays in product shipments, shorter full-price selling windows, and strain on the European distribution center. These issues have impacted revenue and gross margins.
Consumer backdrop in Europe: The company observed a tougher consumer backdrop in Europe, with muted activity and lower in-season replenishment. This has led to a decline in direct-to-consumer revenue and impacted overall performance in the region.
Cold weather outerwear performance: The company faced challenges in the cold weather outerwear category, with a shorter full-price selling window and a shift in consumer preference towards lighter transitional outerwear. This has negatively impacted sales in key regions.
Choppy macroeconomic environment in the Americas: The Americas region continues to experience a choppy macroeconomic environment, leading to low single-digit declines in direct-to-consumer revenue and uneven consumer activity.
Licensing revenue decline: Licensing revenue has declined due to the transition of Calvin Klein women's sportswear and jeans wholesale categories in-house, impacting overall revenue.
Higher promotions and delayed shipments: Higher promotions and delayed shipments, particularly in Europe, have contributed to lower gross margins and reduced full-price selling opportunities.
Leadership transition: The departure of the Chief Financial Officer and the transition to an interim CFO may create temporary uncertainty in financial leadership and strategic execution.
Full Year Revenue and Operating Margin Outlook: Reaffirming constant currency revenue and operating margin outlook. Narrowing reported revenue and non-GAAP EPS outlook to the high end of previous ranges.
Fourth Quarter Revenue: Projected to be up slightly to low single digits on a reported basis and down slightly on a constant currency basis.
Fourth Quarter Operating Margin: Expected to be approximately 9%, down approximately 100 basis points compared to last year.
Fourth Quarter Earnings Per Share (EPS): Expected to be in the range of $3.20 to $3.35.
Full Year Revenue Growth: Narrowed to up low single digits on a reported basis, with constant currency revenue projected to be flat to increase slightly.
Full Year Operating Margin: Reaffirmed at approximately 8.5%.
Full Year Earnings Per Share (EPS): Narrowed to a range of $10.85 to $11.
Tariff Impact: Net negative impact of approximately $65 million to EBIT or $1.05 per share for 2025, with mitigation actions expected to fully offset over time.
Regional Revenue Outlook: Americas: Revenue up mid-single digits. APAC: Revenue down mid-single digits in constant currency. EMEA: Revenue down slightly in constant currency.
Inventory Management: Inventory expected to align with sales plan by year-end, excluding tariffs.
Share Repurchase Program: During the quarter, PVH completed its previously announced accelerated share repurchase program, reducing its share count by 2.3 million additional shares. This brought the total amount of shares purchased under the agreement to 6.9 million and the year-to-date total, including open market purchases, to 7.7 million shares.
The earnings call highlighted mixed results: positive earnings per share and digital growth, but challenges in Europe and flat revenue in Asia Pacific. Marketing investments showed promise, yet gross margin declined. Q&A insights confirmed positive trends in Americas and APAC, but management was vague on some specifics. Overall, the reaffirmed guidance and operational improvements are offset by tariff impacts and regional challenges, leading to a neutral sentiment.
The earnings call summary shows strong financial performance with an EPS beat and improvements in operating margins, despite challenges like tariffs. The Q&A reveals positive regional growth, effective marketing strategies, and strong cash flow management. The optimistic outlook for 2026 and ongoing brand improvements further support a positive sentiment. Although management was vague on some specifics, the overall tone was optimistic, particularly with promising regional performance and strategic marketing efforts.
The earnings call presents a mixed outlook. While there is strong revenue growth in the Americas and strategic marketing investments, the decline in EPS and high inventory levels are concerning. The management's optimistic guidance and efforts to mitigate tariffs are positive, but the lack of specific details on tariff impacts and promotional trends introduces uncertainty. The overall sentiment is neutral, as positive elements are balanced by negative and uncertain factors.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
