PVH Corp., the parent of the Tommy Hilfiger and Calvin Klein businesses, reported 2025 third-quarter revenue of $2.29 billion, a 2 percent increase compared to $2.26 billion in the prior-year Q3 period. Sales decreased less than 1 percent on a constant-currency (cc) basis.

“In the third quarter, we exceeded our guidance across reported revenue, operating margin and EPS, and delivered constant-currency revenue in line with expectations,” offered Stefan Larsson, CEO, PVH Corp. “Through disciplined PVH+ Plan execution, we continued to lean into the iconic brand strength of Calvin Klein and Tommy Hilfiger, expanding innovation across product and delivering cut-through marketing. Calvin drove growth in key categories like underwear and fashion denim, while Tommy Hilfiger delivered growth in core lifestyle categories, elevating style icons through the Hilfiger Racing Club campaign.”

Segment Performance
Larsson continued, “In Europe, we saw a tougher backdrop entering the fall, while in the Americas, our digital channels continued to outperform, and in APAC, we again exceeded expectations, driven by strong DTC performance with a notable improvement in China. Despite the continued uneven global consumer environment, we delivered an on-plan start to the Holiday season and Black Friday week in both Europe and North America. At the same time, we continue to strengthen our data- and demand-driven supply chain, reflected in healthy inventory levels. We are also investing in key growth initiatives, especially marketing, and have freed up over 200 basis points in SG&A efficiencies over the past 18 months. Looking ahead, we are reaffirming our full-year constant currency revenue and operating margin outlook and narrowing our reported revenue and non-GAAP EPS outlook to the high end of our previous ranges, reflecting our confidence in our brands.”

  • EMEA revenue increased 4 percent compared to the prior-year Q3 period (decreased 2 percent on a constant-currency basis). The decrease in revenue on a constant-currency basis was driven by declines in both the direct-to-consumer and wholesale businesses.
  • Americas revenue increased 2 percent compared to the prior-year Q3 period, driven by growth in the wholesale business, partially offset by a decrease in the direct-to-consumer business. The increase in wholesale revenue included the transition of previously licensed women’s product categories in-house, partially offset by the timing of prior-year wholesale shipments, which were more heavily weighted to the second half of the year.
  • APAC revenue decreased 1 percent compared to the prior-year period on a reported basis and was flat on a constant-currency basis. On a constant-currency basis, growth in the direct-to-consumer business was offset by a decrease in the wholesale business.
  • Licensing revenue decreased 11 percent compared to the prior-year Q3 period, primarily due to the transition of certain previously licensed women’s product categories in-house.

Global Brand Business Summary

  • Tommy Hilfiger revenue increased 1 percent (-2 percent cc) compared to the prior-year Q3 period.
  • Calvin Klein revenue increased 2 percent (flat cc) compared to the prior-year Q3 period.

Channel Summary

  • Direct-to-consumer revenue was flat compared to the prior-year Q3 period on a reported basis and decreased 1 percent on a constant-currency basis.
  • Owned and operated store revenue was said to be flat compared to the prior-year Q3 period on a reported basis and decreased 2 percent on a constant-currency basis. On a constant-currency basis, revenue growth in APAC was more than offset by declines in the Americas and EMEA.
  • Owned and operated digital commerce revenue increased 1 percent (flat cc) compared to the prior-year Q3 period. On a constant-currency basis, revenue growth in the Americas and APAC was offset by a decline in EMEA.
  • Wholesale revenue increased 4 percent compared to the prior-year Q3 period (increased 1 percent on a constant-currency basis), primarily driven by the increase in the Americas, partially offset by the decreases in APAC and EMEA.

Profitability and Expenses
Gross margin was 56.3 percent of sales in the third quarter, compared to 58.4 percent in the prior-year Q3 period. The 210 basis point decrease reflects the impacts of (i) increased tariffs on goods coming into the U.S., (ii) an increased promotional environment, (iii) the gross margin differential due to the transition of previously licensed women’s product categories to an in-house wholesale business, and (iv) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays.

Earnings before interest and taxes (EBIT) on a GAAP basis were $181 million, inclusive of a $8 million positive impact attributable to foreign currency translation, compared to $183 million in the prior-year Q3 period. EBIT on a GAAP basis included costs of $22 million in the third quarter and net costs of $53 million in the prior-year Q3 period. EBIT on a non-GAAP basis for these periods excludes these amounts.

EBIT on a non-GAAP basis was $202 million, inclusive of the $8 million positive impact attributable to foreign currency translation, compared to $236 million in the prior-year Q3 period. The decrease was more than explained by the gross margin decline.

The company said it continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

On a GAAP basis, EPS amounted to 9 cents per share in Q3, compared to $2.34 per share in the prior-year Q3 period. On a non-GAAP basis, EPS was $2.83 per share compared to $3.03 per share in the prior-year Q3 period. Previous guidance was in the range of $2.35 to $2.50 per share.

EPS on both a GAAP and a non-GAAP basis for the third quarter of 2025 includes:

  • a net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately 37 cents per share and a partially offsetting impact of mitigation actions; and
  • The positive impact of 14 cents per share is related to foreign currency translation.

EPS on a GAAP basis for these periods also includes the amounts for the applicable period under non-GAAP exclusions. EPS on a non-GAAP basis for these periods excludes these amounts.

Net interest expense increased to $21 million from $16 million in the prior-year Q3 period, primarily due to the impact of the accelerated share repurchase agreements discussed below.

Effective tax rate was 97.4 percent on a GAAP basis compared to 21.0 percent in the prior-year Q3 period. The effective tax rate was 25.5 percent on a non-GAAP basis compared to 22.6 percent in the prior-year Q3 period.

The effective tax rate on a GAAP basis for the third quarter of 2025 includes the impact of the $480 million pre-tax non-cash goodwill and other intangible asset impairment charges that were recorded in the first quarter of 2025, which are non-deductible for tax purposes and factored into the company’s annualized effective tax rate. The effective tax rate on a non-GAAP basis for the third quarter of 2025 excludes this impact.

Balance Sheet Summary
Inventory increased 3 percent compared to the prior-year Q3 period, reflecting a significant improvement over the increase in the second quarter of 2025, and includes a 2 percent impact from increased tariffs.

Stock Repurchase Program
Delivering on its commitment under the PVH+ Plan to return excess cash to stockholders, the company repurchased 5.4 million shares of its common stock for $561 million in the first quarter through accelerated share repurchase (ASR) agreements and open market purchases. During the third quarter of 2025, the ASR agreements were settled, and the company received an additional 2.3 million shares of its common stock, bringing the total shares repurchased to 7.7 million for the first nine months of 2025. The company did not make any repurchase payments on its common stock during the second and third quarters of 2025.

2025 Outlook
The company’s 2025 outlook reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $65 million unmitigated impact to full year 2025 EBIT, or approximately $1.05 per share, and a partially offsetting impact of planned mitigation actions which began in the third quarter of 2025 and will more significantly take effect in the fourth quarter of 2025.

PVH said there is significant uncertainty regarding global trade policies and their impact on the broader macroeconomic environment, and, as such, the company’s 2025 outlook could be subject to material change.

Full Year 2025 Guidance

Revenue: Narrowing outlook to up low single-digits compared to an increase slightly to up low single-digits previously. Reaffirming outlook of flat to increase slightly on a constant-currency basis.

Operating margin: Reaffirming outlook of approximately 8.5 percent on a non-GAAP basis compared to 8.9 percent on a GAAP basis and 10.0 percent on a non-GAAP basis in 2024.

EPS: Narrowing outlook to a range of $10.85 to $11.00 on a non-GAAP basis compared to $10.75 to $11.00 previously. EPS was $10.56 on a GAAP basis and $11.74 on a non-GAAP basis in 2024.

The 2025 EPS projection includes:

  • An estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately $1.05 per share compared to approximately $1.15 previously and a partially offsetting impact of planned mitigation actions.
  • The estimated positive impact of approximately 45 cents per share related to foreign currency translation EPS on a GAAP basis for 2024 includes the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for 2024 excludes these amounts.

Net interest expense is projected to increase to approximately $80 million, up from $67 million in 2024, primarily due to the impact of the ASR agreements.

Effective tax rate is projected to be approximately 22 percent on a non-GAAP basis.

Fourth Quarter 2025 Guidance
Revenue: Projected to increase slightly in the low single-digits compared to the fourth quarter of 2024 (decrease slightly on a constant-currency basis).

EPS: Projected to be in a range of $3.20 to $3.35 on a non-GAAP basis compared to $2.83 on a GAAP basis and $3.27 on a non-GAAP basis in the fourth quarter of 2024.

The fourth quarter 2025 EPS projection includes:

  • An estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately 60 cents per share and a partially offsetting impact of planned mitigation actions.
  • The estimated positive impact of approximately 20 cents per share related to foreign currency translation.

Net interest expense is projected to increase to approximately $20 million, up from $14 million in the fourth quarter of 2024, primarily due to the impact of accelerated share repurchase agreements.

Effective tax rate is projected to be approximately 22 percent on a non-GAAP basis.

The company said it is is unable to project full year 2025 operating margin and full year and fourth quarter 2025 EPS and effective tax rate on a GAAP basis without unreasonable efforts as there are significant uncertainties with respect to (i) the amount and timing of the restructuring costs to be incurred during 2025 in connection with the multiyear Growth Driver 5 Actions defined later in this release and (ii) the actuarial gain or loss on the company’s retirement plans, to be recorded in the fourth quarter 2025, due to volatility in the financial markets. As such, the company is unable to provide a full reconciliation of its full-year 2025 operating margin and full-year and fourth-quarter 2025 EPS and effective tax rate guidance on a non-GAAP basis to the corresponding GAAP measures.

Image courtesy PVH Corp.