PVH Corp. has reported its 2025 second-quarter results, showing a 4% increase in revenue to $2.167 billion compared to the prior year period, exceeding the low single-digit increase guidance. On a constant currency basis, revenue increased 1%, in line with the guidance of a flat to slight increase. Earnings per share (EPS) on a non-GAAP basis were reported at $2.52, surpassing the guidance of $1.85 to $2.00.
PVH Corp. also provided an outlook for the full year, with a projected increase in revenue slightly to low single-digits, compared to the previous projection of flat to a slight increase. The company reaffirmed its outlook of flat to a slight increase on a constant currency basis. The operating margin is expected to be approximately 8.5% on a non-GAAP basis, inclusive of the impact of recently announced tariff increases. The EPS outlook for the full year remains at a range of $10.75 to $11.00 on a non-GAAP basis.
In the second quarter of 2025, PVH Corp. saw revenue growth in its EMEA and Americas segments, with the EMEA segment recording a 3% increase and the Americas segment showing an 11% increase. However, the APAC segment experienced a 1% decrease in revenue. The company's global brand businesses also demonstrated growth, with Tommy Hilfiger revenue increasing by 4% and Calvin Klein revenue increasing by 5%, both compared to the prior year period.
The company's gross margin was reported at 57.7%, a decrease from 60.1% in the prior year period, attributed to factors such as an increased promotional environment and higher tariffs on goods coming into the U.S. Inventory increased by 13% compared to the prior year period, primarily due to investment in core product inventory and to support projected sales growth in the third quarter. Earnings before interest and taxes (EBIT) on a non-GAAP basis were $178 million, inclusive of a positive impact attributable to foreign currency translation, compared to $189 million in the prior year period.
PVH Corp. reported EPS on a non-GAAP basis of $2.52, compared to $3.01 in the prior year period. The company's effective tax rate was 21.8% on a non-GAAP basis, compared to (0.1)% in the prior year period.
The company also provided an outlook for the third quarter of 2025, projecting flat to a slight increase in revenue compared to the third quarter of 2024, with EPS projected to be in the range of $2.35 to $2.50 on a non-GAAP basis.
PVH Corp. is facing uncertainties related to global trade policies, particularly the impact of tariffs on its financial outlook. However, the company remains confident in its ability to execute its strategic initiatives, as reflected in its raised revenue guidance for the full year and reaffirmed non-GAAP earnings outlook. Following these announcements, the company's shares moved 0.93%, and are now trading at a price of $82.36. For more information, read the company's full 8-K submission here.
