PVH (PVH) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2024 results, exceeding guidance for both revenue and non-GAAP EPS, with record gross margin and double-digit EBIT margin of 10% despite macroeconomic headwinds.

• Fourth quarter 2024 revenue of $2.372B decreased 5% year-over-year but exceeded guidance; full year revenue of $8.653B decreased 6%, also beating guidance.

• Achieved significant progress in brand-building for Calvin Klein and Tommy Hilfiger, driving consumer engagement and product innovation, and executed the PVH Plus plan to simplify operations and drive efficiencies.

• Strong performance in North America with double-digit EBIT margin; sequential improvement in European wholesale and third consecutive year of growth in Asia Pacific on a constant currency basis.

• $500M in share repurchases completed in 2024; another $500M planned for 2025 via accelerated share repurchase agreements.

Financial highlights

• Record gross margin of 59.4% for 2024 and record non-GAAP EPS of $11.74, up 10% year-over-year, surpassing guidance.

• Q4 revenue and EPS slightly ahead of guidance; Q4 operating margin at 10.3% and EPS at $3.27.

• Free cash flow nearly $600 million, with $500 million returned to shareholders via share repurchases.

• North America EBIT up over 40% for Calvin Klein and Tommy Hilfiger combined, with 350+ basis points margin expansion.

• Q4 GAAP EBIT was $210M; non-GAAP EBIT was $244M, both impacted by $8M negative FX and a $28M actuarial loss on retirement plans.

Outlook and guidance

• 2025 revenue expected to be flat to up slightly, with operating margin also flat to up slightly from 10% in 2024.

• Projected record non-GAAP EPS of $12.40–$12.75 for 2025, up 9% at the top end, aided by $500 million in planned share repurchases.

• Q1 2025 revenue projected flat to down 2% reported, with operating margin 8–8.5% and EPS $2.10–$2.25.

• 2025 interest expense projected to rise to ~$85M due to funding of share repurchases; effective tax rate expected at ~22%.

• Europe expected to return to growth, Americas revenue up mid-single digits, Asia Pacific revenue down mid-single digits due to China headwinds.