PVH (PVH) Q2 2025 earnings summary

Executive summary

• Q2 2024 revenue was $2.074 billion, down 6% year-over-year, in line with guidance, mainly due to the Heritage Brands intimates divestiture and negative FX impacts.

• EPS exceeded guidance, with GAAP at $2.80 and non-GAAP at $3.01, both benefiting from a $0.55/share tax benefit from a favorable audit settlement.

• Gross margin expanded to 60.1%, driven by improved product mix, more full-priced selling, and reduced clearance activity.

• North America delivered 1% revenue growth for Calvin Klein and Tommy Hilfiger combined, with strong margin expansion, while international revenue declined due to softness in Asia Pacific and planned reductions in Europe.

• Strategic focus on quality of sales led to less clearance activity, higher gross margins, and a deliberate reduction in low-quality revenue, especially in DTC channels.

Financial highlights

• Q2 2024 revenue: $2.074 billion (down 6% year-over-year), including a 3% decline from the Heritage Brands women's intimates business sale.

• Net income for Q2 2024 rose to $158 million from $94 million in Q2 2023, driven by higher gross margins and lower interest expense.

• Gross margin for Q2 2024: 60.1% (up 250 basis points year-over-year).

• Non-GAAP EBIT for Q2 2024: $189 million, up from $182 million last year.

• Inventory was down 12% year-over-year, reflecting improved inventory management.

Outlook and guidance

• Full-year 2024 revenue expected to decrease 6–7% year-over-year, mainly due to the Heritage Brands divestiture and European wholesale softness.

• Full-year GAAP EPS guidance raised to $11.20–$11.45; non-GAAP EPS to $11.55–$11.80, reflecting the tax benefit.

• Gross margin for the year expected to increase by 150 basis points, reaching an all-time high.

• SG&A as a percent of revenue planned to increase by 130–150 basis points, with expense dollars down year-over-year.

• $400 million in share buybacks planned for the year.