Dive Brief:
- PVH Corp. saw its revenue increase 2% to $1.98 billion in the first quarter of fiscal 2025, according to a press release Wednesday. The increase exceeded the company’s previous guidance of flat to down 2% for the quarter.
- Tommy Hilfiger revenue increased 3% year over year, driven by growth in the Americas as well as the region including Europe, the Middle East and Africa. Calvin Klein revenue was flat for the period.
- Overall DTC revenue fell 3% year over year, with growth in EMEA offset by declines in both the Americas and in Asia Pacific. Wholesale revenue increased 6%.
Dive Insight:
2025 is an important year in PVH’s previously announced multi-year PVH+ Plan, which looks to boost the value and desirability of the Calvin Klein and Tommy Hilfiger brands. The strategic plan is also designed to bring the company to $12.5 billion in revenue by the end of this year.
Thus, growing revenue is a big commitment for the company in 2025, said CFO Zac Coughlin on an earnings call with investors Thursday.
However, changing tariff policies and tempered consumer spending have made this a challenging time for the fashion industry.
“While we are making important progress in our PVH+ Plan execution, we are navigating an increasingly uncertain consumer and macroeconomic backdrop — and given where we are on our brand-building journey, we’re not yet fully able to offset that impact,” PVH CEO Stefan Larsson said in the press release. “Looking ahead, we’re focused on what we can control, stepping up our actions to scale the impact of our stronger product, next-level cut-through campaigns, and sharper marketplace execution across both brands.”
Next quarter, PVH expects revenue to increase in the low single-digits compared to the same period last year. PVH reaffirmed its fiscal 2025 outlook, and forecast revenue to be flat or slightly up year over year. However, it changed its earnings per share guidance for the year to a range of $10.75 to $11, down from its previous guidance of $12.40 to $12.75.
On the earnings call, Larsson said that despite the negative consumer and macroeconomic environment, the company is still able to retain customers by tapping into product innovation, distinctive marketing and strong wholesale.
He pointed to the recent product innovation in Calvin Klein’s men’s underwear, including a viral ad campaign with musician Bad Bunny, as well as Tommy Hilfiger’s partnership with Cadillac for a Formula 1-inspired collection.
PVH said it identified $65 million in unmitigated tariff effects for the rest of the year, though it believes it has an advantage with a globally diversified revenue base and supply base. The company has a larger international share of its business than some of its competitors, with 30% of its business in the U.S. and 70% international, per Larsson.
PVH is working with its supply chain partners to share the impact of the tariffs if possible, but noted that it’s ready to take “calibrated and targeted pricing action” in business lines where it has pricing power, Coughlin said on the call.
“We remain laser focused on perceived value for our consumers, so we will evaluate to take discount reductions to mitigate potential tariff impact,” he said.
