PVH Reaffirms Outlook Amid Tariff Refunds; Core Business Recovery in Question
PVH Corporation reported second-quarter revenue of $2.097 billion, a 3% decline from the prior year. The company's gross margin improved by 530 basis points to 63%, largely due to $107 million in tariff refunds, with only minor improvements stemming from lower product costs and favorable mix. Despite these gains, underlying gross margins remained stable, suggesting that reported growth was inflated by one-time benefits. PVH also recorded a significant noncash goodwill impairment of $439 million, driven by revised geopolitical and macroeconomic assumptions. GAAP operating margin turned negative to -9.1% from 6.1%. The company reaffirmed its full-year guidance for flat revenue and an 8.8% non-GAAP operating margin with earnings per share between $11.80 and $12.10. However, the core business showed mixed results: Calvin Klein's revenue dropped by 7%, wholesale sales declined across all regions, and licensing revenue fell sharply. While digital growth in owned channels was positive, inventory reductions and shipment timing shifts suggest ongoing challenges.
Tickers: $PVH
Topics: goodwill impairment gross margin improvement revenue decline tariff refunds