PVH Corp Reports Q2 Performance in Line With Guidance Amid Regional Challenges
PVH Corp (NYSE: PVH) delivered a second-quarter performance that met or exceeded its own projections, with revenue of $2.097 billion declining by 3% year-over-year as expected. Adjusted operating margins rose to 11.1%, surpassing estimates due in part to $107 million in tariff refunds and higher-than-expected adjusted earnings per share (EPS) at $3.70, driven largely by the same refunds. The company reported strong momentum from its Calvin Klein and Tommy Hilfiger brands through new marketing campaigns featuring Tate McRae and Travis Kelce, as well as continued progress under the PVH+ Plan. DTC growth was notable across Asia-Pacific, Americas, and Europe, Middle East, and Africa (EMEA), though EMEA revenue fell 6% due to weak consumer spending linked to ongoing geopolitical tensions. Despite these challenges, management reaffirmed its full-year outlook for both revenue and profitability. However, risks remain in the form of declining wholesale sales, particularly in EMEA and Americas segments, as well as a drop in licensing revenue by 13%, attributed to planned license transitions.
Topics: brand campaigns DTC growth financial performance tariff refunds