Operating and Gross Margin Performance

Q4 2024 and Q1–Q2 2025: Consistent double‐digit operating margins, record-high gross margins (up to 61.4%) and significant basis point improvements driven by channel mix, cost efficiencies and lower raw material costs " " " "

Q3 2025: Operating margin at 10.5% (flat vs. last year) with a gross margin of 58.4% improved by 170bps; caution noted for Q4 due to promotional and freight cost pressures " " "

Recurring focus on margins continues. While operating performance remains solid, there is a slight moderation in gross margin improvement expectations due to emerging pricing and promotional challenges.

Direct-to-Consumer (DTC) Business Trends

Q1–Q2 2025 & Q4 2024: Emphasis on a higher quality sales mix, DTC revenue growth in retail stores and regionally differentiated e-commerce performance with some declines offset by quality improvements " " " "

Q3 2025: DTC revenue flat on a reported basis with slight declines in owned e-commerce; however, notable improvement from August onwards driven by better sell-through and inventory composition " " "

Recurring focus with a continued emphasis on quality of sales. Although revenue metrics show minor declines, strategic initiatives are driving improvements in product and inventory quality.

Consumer Engagement and Brand Campaigns

Q1–Q4 2024 and Q1–Q2 2025: Strong, culturally resonant campaigns leveraging mega talent (e.g., Kendall Jenner, Jeremy Allen White) that delivered high consumer engagement, increased social media interaction and sales uplift " " " "

Q3 2025: Continued use of high-impact global and regional talent (e.g., NewJeans, Jisoo) for Calvin Klein and Tommy Hilfiger campaigns, driving engagement especially in Asia Pacific " " "

Consistent and growing focus on consumer engagement remains central to strategy. Campaigns are evolving with more regionally relevant collaborations, further enhancing brand desirability globally.

European Market Dynamics and Wholesale Order Books

Q1–Q4 2024 & Q1–Q2 2025: European markets were challenged by cautious consumer sentiment, conservative wholesale order books and quality of sales initiatives; however, sequential order book improvements and inventory refresh efforts provided early signs of recovery " " " "

Q3 2025: Improved sell-throughs for fall products and strategic emphasis on quality sales, with positive feedback from wholesale partners and the appointment of new leadership hinting at a more favorable outlook " " " "

Recurring challenges but with emerging improvements: While cautious sentiment persists, strategic adjustments and leadership changes indicate a gradual upward trend toward stabilization and better wholesale dynamics.

Macroeconomic Environment and Promotional Activity Pressures

Q1–Q4 2024 & Q1–Q2 2025: Acknowledged tough macro conditions in key markets (Europe, North America, Asia Pacific) with initiatives to reduce clearance sales and mitigate discounting; increased promotional pressures were noted, especially during seasonal clearances " " " "

Q3 2025: Continued reference to a tough macroeconomic backdrop in North America and Asia with early holiday promotions causing increased promotional pressures, impacting future gross margin guidance " " "

Recurring and intensifying: Macro challenges remain a constant concern, with seasonal factors (early holiday promotions) adding pressure on margins, necessitating careful management of promotional strategies.

Supply Chain Disruptions and Freight Cost Challenges

Q4 2024: Noted temporary supply chain disruptions and freight cost challenges, with improvements partially credited to lower ocean freight rates; regarded as transitory and offset by strategic inventory management " " " "

Q3 2025: Alerts to modest freight cost increases due to temporary supply chain issues and Red Sea surcharges, expected to impact Q4 gross margins modestly while remaining largely transitory in nature " "

Emerging focus: Although not heavily discussed in earlier Q1 and Q2, current disclosures note freight challenges as a cautious but temporary issue, warranting careful monitoring as Q4 approaches.

Strategic Transition of Women's Product Assortment

Q4 2024: Initial mention with Stefan Larsson discussing the plan to take back North America women’s product categories for Wholesale and integrate them into the PVH+ framework, aimed at long-term growth and pricing power "

Q3 2025: Announcement of a strategic transition of the North America women’s product assortment, described as a multiyear process and targeting organic growth and improved product execution "

New emphasis: While first flagged in Q4 2024, the current period reinforces the transition as a key strategic move to drive long-term brand strength, signaling a deeper operational and strategic commitment.

Management and Leadership Changes in Europe

Q1–Q4 2024 & Q1–Q2 2025: Notable transitions including the departure of longstanding leaders, interim leadership assignments, and near-future permanent appointments aimed at revamping European operations " " " "

Q3 2025: Announcement of Fredrik Olsson as the new permanent CEO of Europe, building on previous transitions and signaling a commitment to stronger regional leadership and growth "

Recurring focus with continued evolution: The European leadership narrative remains dynamic, shifting from interim to permanent appointments, highlighting an ongoing focus on improving strategic oversight and market performance.