Profits fall at Calvin Klein owner PVH

The company reported a pre-tax loss of $349m (£257m), compared with pre-tax income of $187m (£138m) in the previous year. Gross profit dropped 3% year on year to $1.16bn (£1.18bn).

Revenue increased 2% to $1.98bn (£1.46bn), while EBIT was $160m (£118m), compared with $195m (£143m) the previous year.

In terms of regions, EMEA sales rose 5% and the Americas increased 7% year on year. However, Asia-Pacific revenue dropped 13%.

For PVH-owned brand Tommy Hilfiger, revenue rose 3%. Calvin Klein’s sales were flat.

Direct-to-consumer sales dropped 3% year on year. However, wholesale fared better and increased 6%.

Stefan Larsson, chief executive officer of PVH, said: “While we are making important progress in our PVH+ Plan execution, we are navigating an increasingly uncertain consumer and macroeconomic backdrop-and given where we are on our brand-building journey, we’re not yet fully able to offset that impact.

“Looking ahead, we’re focused on what we can control, stepping up our actions to scale the impact of our stronger product, next-level cut-through campaigns, and sharper marketplace execution across both brands. This will both strengthen the back half of this year, and continue to move us toward our long-term goal of building Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world.”

The company shared its outlook for 2025, sharing it “reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the US”.

It forecast revenue will be flat for its full-year 2025/26, while operating margin is projected to be around 8.5% on a non-GAAP basis.

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