PVH Corp. has reported its 2025 second quarter results, with revenue increasing by 4% to $2.167 billion compared to the prior year period. The company's EPS on a non-GAAP basis was reported at $2.52, exceeding the guidance of $1.85 to $2.00. The company's full-year revenue outlook has been raised to an increase slightly to up low single-digits compared to the previous outlook of flat to increase slightly. The operating margin outlook has been reaffirmed at approximately 8.5% on a non-GAAP basis.
The revenue performance for the company's reportable segments in the second quarter compared to the prior year period was as follows: EMEA revenue increased 3%, Americas revenue increased 11%, and APAC revenue decreased 1%. Licensing revenue decreased 3% due to the transition of certain previously licensed women's product categories in-house.
The company reported that its gross margin was 57.7%, a decrease from 60.1% in the prior year period, reflecting 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 a purposeful investment in core product inventory and an increase to support projected sales growth in the third quarter.
Earnings before interest and taxes (EBIT) on a non-GAAP basis was $178 million, inclusive of a positive impact attributable to foreign currency translation, compared to $189 million in the prior year period. The company reported a non-GAAP EPS of $2.52 compared to $3.01 in the prior year period.
The company's 2025 outlook reflects an estimated net negative impact related to tariffs currently in place for goods coming into the U.S., including an approximately $70 million unmitigated impact to full-year 2025 EBIT, or approximately $1.15 per share. The full-year EPS outlook on a non-GAAP basis has been reaffirmed at a range of $10.75 to $11.00, including the estimated negative impact related to tariffs and the positive impact of approximately $0.45 per share related to foreign currency translation.
The company also noted its commitment to return excess cash to stockholders, having made $561 million of purchases in the first quarter through accelerated share repurchase agreements and open market purchases.
PVH Corp.'s third quarter 2025 EPS is projected to be in a range of $2.35 to $2.50 on a non-GAAP basis, with an estimated net negative impact related to tariffs currently in place for goods coming into the U.S.
The market has reacted to these announcements by moving the company's shares 1.09% to a price of $82.49. For the full picture, make sure to review PVH CORP. /DE/'s 8-K report.
