Calvin Klein owner PVH exceeds guidance and narrows full-year outlook

PVH Corp, the owner of Calvin Klein and Tommy Hilfiger, has reported third-quarter revenue and earnings above expectations, while narrowing its full-year outlook to the high end of previous ranges.

For the third quarter, PVH posted revenue of $2.294 billion (£1.72 billion), up by 2% compared to the prior year. The company’s non-GAAP earnings per share reached $2.83 (£2.12), above guidance of $2.35 to $2.50 (£1.76 to £1.87).

Despite some margin pressure, largely due to tariffs, higher freight costs and increased promotional activity, the company maintained a gross margin of 56.3%.

CEO Stefan Larsson said the results reflected strong brand momentum and disciplined execution of the PVH+ Plan. "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," he noted.

Geographically, results were a mixed bag. EMEA increased 4% but fell 2% on a constant currency basis, Americas rose 2%, and APAC declined 1%, flat on a constant currency basis. Direct-to-consumer revenue was largely flat year-on-year, while wholesale grew 4%, driven primarily by the Americas. Licensing revenue dropped 11% following the transition of certain previously licensed women’s categories in-house.

Larsson added: "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."

Zac Coughlin, CFO at PVH, said: "We continue to manage our business prudently, investing in key brand accretive investments, and have unlocked significant cost efficiencies through our Growth Driver 5 actions."

For the full year, PVH has narrowed its guidance, aiming for the high end of its previous outlook. Non-GAAP EPS is now expected between $10.85 and $11.00 (£8.12 and £8.23), slightly higher than the prior range of $10.75 to $11.00 (£8.05 to £8.23). Revenue is projected to grow in the low single digits.

The company flagged that ongoing US tariffs are likely to reduce earnings by around $1.05  (£0.79) per share.