PVH (PVH) Goldman Sachs 32nd Annual Global Retailing Conference 2025 summary

Brand strategy and consumer engagement

• Focused on leveraging the global appeal of Calvin Klein and Tommy Hilfiger, each representing about half of the business, with strong positions in Europe, the U.S., and growth potential in APAC.

• Emphasized connecting brand DNA to culture and consumers through high-profile talent and innovative product launches, driving significant growth in key categories like underwear and denim.

• Strategic partnerships, such as with Apple Studios for the Formula One movie and collaborations with Cadillac and SailGP, reinforce brand relevance and cultural presence.

• Q2 saw 4% overall growth, with both brands contributing, driven by product strength, consumer engagement, and marketplace execution.

• Ongoing focus on improving consumer experience in stores and online, aligning inventory and presentation with consumer demand.

Regional performance and outlook

• Europe remains the largest market, showing high-quality growth in wholesale and D2C channels, with forward-looking order books up for both fall and spring.

• North America faces uncertainty due to tariffs, but DTC and wholesale channels showed sequential improvement in Q2, with a focus on building consumer loyalty and product relevance.

• APAC, especially China and Japan, demonstrated stabilization and growth, highlighted by successful campaigns and the opening of a flagship Calvin Klein store in Harajuku, which drove a halo effect across channels.

• Investments in flagship stores globally aim to create ultimate brand experiences and drive business across regions.

Operational improvements and financial strategy

• Centralization of Calvin Klein's global product creation initially caused margin pressure, but corrective actions have restored performance, with improvements visible in the second half of the year and full recovery expected by spring 2026.

• Enhanced forward-looking planning and discipline in product innovation and go-to-market execution are now embedded, driving consistent category growth.

• Tariff impacts are being mitigated through vendor negotiations, supply chain adjustments, and marketplace strategies, with about $70 million unmitigated impact expected this year and ongoing efforts to offset further effects.

• Margin expansion remains a key target, with operating margin guidance at 8.5% and a medium-term goal of 15%, supported by locked-in product margins, European growth, and SG&A efficiency initiatives.

• Most building blocks for margin expansion are already executed or in place, with financial benefits expected to materialize over the next several quarters.