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PVH CORP. /DE/ (PVH)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 delivered better-than-guided topline and non-GAAP EPS: revenue $2.372B (-4.8% YoY) beat guidance (down 6–7%) and non-GAAP EPS $3.27 topped guidance ($3.05–$3.20), despite gross margin compression to 58.2% on promotions, freight and mix .
  • Regional/segment dynamics: Calvin Klein held up (CK total -1.8% YoY; CK NA +3%), Tommy Hilfiger more affected by Europe “quality of sales” actions (Tommy total -5.1% YoY; Tommy Int’l -7%) .
  • 2025 outlook points to flattish revenue and operating margin, and non-GAAP EPS $12.40–$12.75 (includes ~$0.20 FX headwind), plus a $500M accelerated share repurchase (ASR) program to amplify EPS growth .
  • Key watch items: expected H1 2025 margin headwinds from Calvin product transition and G-III women’s sportswear license takeback (~50 bps gross margin drag), offset by SG&A efficiencies (“Growth Driver 5”) and improving European wholesale order books in H2 .

What Went Well and What Went Wrong

What Went Well

  • “We finished the year strong… beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin” — CEO Stefan Larsson .
  • North America profitability: combined Calvin & Tommy EBIT margin remained double-digit, aided by disciplined PVH+ execution, higher conversion and strong e-commerce growth .
  • European wholesale order books returned to growth for Fall ’25; DTC stores posted two consecutive quarters of growth, evidencing improved product relevance and marketplace execution .

What Went Wrong

  • Gross margin down 210 bps YoY to 58.2%, driven by a more promotional environment, unfavorable channel mix, and higher freight costs (including Red Sea surcharges) .
  • International revenue softness: Tommy Int’l -7% and CK Int’l -4% YoY in Q4; Asia impacted by China softness (acknowledged headwinds continuing into 2025) .
  • Calvin product centralization (global “product kitchen”) created temporary margin/production cost pressure in H1 2025; management chose not to pass costs to partners/consumers, weighing near-term margins .

Financial Results

MetricQ4 2024 (Oldest)Q3 2025Q4 2025 (Newest)
Revenue ($USD Millions)$2,489.9 $2,255.1 $2,371.6
Gross Margin %60.3% 58.4% 58.2%
EBIT - GAAP ($USD Millions)$356.9 $183.1 $210.2
EBIT - Non-GAAP ($USD Millions)$301.4 $236.5 $244.4
Diluted EPS - GAAP ($)$4.55 $2.34 $2.83
Diluted EPS - Non-GAAP ($)$3.72 $3.03 $3.27
Interest Expense ($USD Millions)$20.0 $16.1 $13.7
Effective Tax Rate - GAAP19.3% 21.0% 20.0%
Effective Tax Rate - Non-GAAP21.1% 22.6% 21.4%

Segment revenue (Q4 2025 vs Q4 2024):

SegmentQ4 2024Q4 2025
Tommy Hilfiger North America ($MM)$400.6 $401.3
Tommy Hilfiger International ($MM)$950.6 $880.8
Total Tommy Hilfiger ($MM)$1,351.2 $1,282.1
Calvin Klein North America ($MM)$360.0 $370.5
Calvin Klein International ($MM)$704.4 $675.2
Total Calvin Klein ($MM)$1,064.4 $1,045.7
Heritage Brands Wholesale ($MM)$74.3 $43.8
Total Revenue ($MM)$2,489.9 $2,371.6

KPIs and channel mix (Q4 2025 vs Q4 2024):

KPIQ4 2024Q4 2025
Owned & Operated Retail Stores Revenue ($MM)$1,094.8 $1,055.0
Owned & Operated Digital Commerce Revenue ($MM)$276.0 $248.4
Total Direct-to-Consumer Revenue ($MM)$1,370.8 $1,303.4
Wholesale Revenue ($MM)$998.9 $953.4
Inventory ($MM)$1,419.7 $1,508.7

Vs Wall Street consensus (S&P Global):

MetricConsensusActual
Revenue ($USD Millions)$2,334.1*$2,371.6
EPS (Primary, $)$3.214*$3.27
EBITDA ($USD Millions)$311.7*$263.4*

Values retrieved from S&P Global.
Note: PVH beat revenue and EPS; EBITDA missed versus consensus.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025N/AFlat to slightly up (reported and cc) vs 2024 New
Operating Margin (Non-GAAP)FY 2025N/AFlat to slightly up vs 10.0% in 2024 New
EPS (Non-GAAP)FY 2025N/A$12.40–$12.75; includes ~$0.20 FX drag New
Interest ExpenseFY 2025N/A≈$85M (up vs $67M in 2024) New
Effective Tax RateFY 2025N/A≈22% New
RevenueQ1 2025N/AFlat to -2% (reported), flat to -1% (cc) vs Q1 2024 New
EPS (Non-GAAP)Q1 2025N/A$2.10–$2.25; includes ~$0.05 FX drag New
Interest ExpenseQ1 2025N/A≈$20M New
Effective Tax RateQ1 2025N/A≈18% New
Capital ReturnFY 2025N/A$500M ASR planned New

Earnings Call Themes & Trends

TopicQ2 2025 (Prev-2)Q3 2025 (Prev-1)Q4 2025 (Current)Trend
Gross margin drivers+250 bps YoY from DTC mix/quality of sales; lean clearance; lower product costs +170 bps YoY; mix and lower product costs; 4Q guide -200 bps on promos/freight/mix 58.2% (-210 bps YoY) on promos, freight (Red Sea), mix Down in 4Q; improving sequentially through 2025
Europe “quality of sales”Actions compress revenue but improve margins; sequential wholesale orderbook improvement DTC stores growth; Fall ’25 order books up low single digits Fall ’25 order books back to growth; profitability in euros to grow low double-digit in 2025 Improving sell-through/order books
North America profitabilityCombined CK/Tommy EBIT margin double-digit; DTC down modestly, wholesale up low single digits 13% EBIT margin; five consecutive quarters double-digit EBIT Continuing double-digit EBIT; conversion up; strong e-commerce Sustained strong margins
Asia/China macroAPAC down 4% cc; China/Australia softer; winning big moments (618) APAC up mid-single reported; China +7% LC (timing) Headwinds: China revenue decline; APAC planned down mid-single digits in 2025 Deteriorated; cautious 2025
G-III license transitionCalvin NA women’s sportswear take-back starting Spring ’25; phased multi-year First wave in 2025; no material P&L shock; focus on organic growth ~50 bps gross margin drag in 2025; EPS accretion aided by ASR Near-term GM headwind; strategic
SG&A efficiencies (“Growth Driver 5”)Roadmap to 200–300 bps OpEx savings over time; in-housing e-comm distribution, logistics consolidation Accelerate efficiencies; OM flat YoY despite lower revenue SG&A down ~100 bps in Q1; savings show more in H2; target 200–300 bps over time Building through 2025
Regulatory (MOFCOM China)Investigation acknowledged; cooperation; long-standing China presence —Added to “Unreliable Entities” list; continued engagement; long-term commitment to Chinese consumers Elevated risk backdrop

Management Commentary

  • CEO Stefan Larsson: “In North America, we will continue to drive a double-digit EBIT margin, in Europe our Fall ‘25 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement…” .
  • CFO Zac Coughlin: “We achieved a record high 59.4% gross margin this year and delivered record high non-GAAP EPS of $11.74…” .
  • On 2025 headwinds: “Softness in… North America… [and] a noticeable decline in revenue in China… Calvin Klein product delays are expected to result in temporary margin headwinds… particularly in the first half” .
  • On cost actions: “We expect the total of our Growth Driver 5 actions to deliver 200 to 300 basis points of operating margin expansion over time” .
  • Capital return: “We will… enter in an accelerated share repurchase program in April [2025]” ($500M) .

Q&A Highlights

  • Europe trajectory: order books improving; 2025 profitability in euros planned up low double digits .
  • Margin roadmap: SG&A savings back-half weighted; CK margin improves as product transition normalizes; exit 2025 with higher OM than 2024 .
  • Marketing intensity: sustained investment behind cut-through campaigns (e.g., Bad Bunny for CK), linking product and engagement .
  • Wholesale partnerships: Macy’s Herald Square CK women’s launch; elevation in assortments, space, in-stock .
  • Inventory discipline: aim for ~95% in-stock on icons; more fresh, less aged inventory; continued demand-driven optimization .

Estimates Context

  • Q4 2025 consensus: PVH beat both revenue and EPS (actual revenue $2,371.6M vs $2,334.1M*, EPS $3.27 vs $3.214*), but missed EBITDA (actual $263.4M* vs $311.7M*) .
  • Pattern: Prior quarters (Q4 2024, Q1 2025) also exceeded EPS and revenue estimates, showing execution resilience amid macro volatility (actuals vs consensus)*.
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: expect H1 2025 margin pressure from CK product centralization and license transition; watch Q1 GM (-~250 bps YoY) and APAC trends (China softness) — setup for back-half improvement as product/SG&A actions hit .
  • EPS support: $500M ASR plus FY25 non-GAAP EPS guide $12.40–$12.75 (FX -$0.20) provides downside cushion even in a weaker macro; monitor interest expense ramp to ~$85M .
  • Europe is the swing factor: confirmed Fall ’25 wholesale growth and DTC momentum suggest improving mix/profitability; if sustained, could drive upside to margin trajectory .
  • North America margins durable: multi-quarter double-digit EBIT margins reflect PVH+ execution; focus on full-price selling and inventory freshness should sustain profitability even with softer traffic .
  • Strategic control in women’s: transitioning CK NA women’s sportswear in-house is a multi-year value driver; near-term gross margin headwind (~50 bps) but better long-run brand/product control .
  • Risk monitor: China MOFCOM designation and promotions/freight (Red Sea) are external headwinds; management is actively engaging and mitigating through cost and mix actions .
  • Trading lens: potential catalyst path in H2 2025 — European order book growth conversion, SG&A savings realization, CK margin normalization; ASR should support EPS prints and sentiment .
All GAAP/non-GAAP figures and qualitative statements are sourced from PVH’s Q4 2025 8-K and earnings press release and transcript, with citations in-line. Constant currency and non-GAAP definitions and reconciliations are provided in the documents **[78239_0000078239-25-000014_ex99120244q8k.htm:6]** **[78239_17b4edc60cc34d03ac92c33d59a249cd_8]**.