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PVH Corp, the powerhouse behind Calvin Klein and Tommy Hilfiger, has kicked off 2025 with a stronger-than-expected first quarter, but not without a dose of caution. While the company exceeded revenue and earnings guidance, it has now trimmed its full-year profit outlook, citing the weight of US import tariffs.
PVH’s revenue rose 2% year-on-year to $1.984 billion (£1.55 billion), nudging past forecasts that had hovered around flat growth. CEO Stefan Larsson remained upbeat, pointing to “global consumer love” for the group’s flagship labels.
Larson said: “In Q1, we delivered growth ahead of guidance with strong campaigns and sharper marketplace execution. But the macro landscape remains challenging, and we’re not yet fully offsetting that impact.”
In terms of regions, the Americas and EMEA reported growth, with revenue up 7% and 5% respectively. The Asia-Pacific region, however, saw a 13% decline, reflecting consumer softness, particularly in China.
The wholesale channel proved resilient, up 6%, while direct-to-consumer (DTC) dipped 3%. Owned-store revenue dropped 5%, though digital commerce ticked up 3% year-on-year.
Gross margin slid to 58.6%, down from 61.4% the year prior, impacted by higher promotions, less favourable channel mix and increased freight and discounting costs.
Looking ahead, the company expects revenue to stay about the same for the year. It expects its profit margin to be around 8.5%. This is a change from the earlier forecast, which anticipated it to stay the same or increase slightly compared to last year’s 10%. Adjusted profits per share are now expected to come in at $10.75 to $11 (£8.70 to £8.90), down from the $12.40 to $12.75 (£10 to £10.30) previously forecast.
CFO Zac Coughlin noted the company was “navigating a highly dynamic and uncertain macroeconomic environment” that continues to affect both consumer confidence and industry margins.
“We’re reaffirming our top-line outlook,” Coughlin said, “but recalibrating the bottom line to reflect current realities – particularly tariffs, which are hitting harder than anticipated.”
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