Pvh exceeds expectations in second quarter despite margin pressure

US clothing group PVH Corporation (PVH Corp) performed better than expected in the second quarter of 2025. Despite a challenging environment, the company increased both its revenue and profit. The parent company of brands such as Calvin Klein and Tommy Hilfiger announced this on Wednesday. The core brands played a significant role in this. They further expanded their market presence through collaborations and marketing initiatives.

PVH Corp CEO Stefan Larsson explained that the company had achieved "noticeable momentum" in the quarter. This enabled growth despite the difficult conditions.

Underwear and celebrity endorsements as growth drivers

In the reporting period, group revenue rose by four percent to 2.17 billion dollars. Business developed particularly strongly in North and South America, where revenues grew by double digits. Growth in Europe was somewhat more subdued (plus four percent) due to postponed wholesale deliveries. Revenues in Asia declined slightly (minus one percent). The decline in the region was primarily attributed to weaker wholesale demand in China.

Calvin Klein once again proved to be a growth driver. The label increased its revenue by five percent to 980 million dollars. This development was primarily due to the core product categories of underwear and denim. Celebrity support from singer Bad Bunny as a campaign star also boosted the brand, according to the announcement.

Celebrity endorsement also helped Tommy Hilfiger achieve revenue of 1.14 billion dollars. The four percent increase was mainly attributed to the campaign surrounding the racing film "F1 The Movie". The partnership with the US SailGP racing team also contributed.

The smaller Heritage Brands, a segment in which the other group brands are bundled, generated 51 million dollars. This meant they remained almost stable.

US tariffs impact gross margin

The company's net profit amounted to 224.2 million dollars, compared to 158 million dollars in the same period of the previous year. Adjusted for special items, however, profit fell to 122.2 million dollars, a decrease of 28 percent. Adjusted earnings per share, at 2.52 dollars, were above the company's own forecast of 1.85 to two dollars.

However, the gross margin fell from 60.1 to 57.7 percent. PVH Corp cited a stronger discount environment as the reason for this. Higher tariffs on imports into the US and additional costs due to delivery delays for Calvin Klein products were also factors.

For the full year 2025, PVH Corp expects slight revenue growth in the low single-digit percentage range. The operating margin is expected to be around 8.5 percent. The forecast for adjusted earnings per share, which was already slightly lowered in the first quarter, remains at 10.75 to 11 dollars.

"We are entering the important autumn season with a strong product pipeline and globally relevant campaigns," explained Larsson. "Our goal remains to further develop Calvin Klein and Tommy Hilfiger into the most desirable brands worldwide."

This article was translated to English using an AI tool.

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