US' PVH Q1 revenue up 2%; EPS outlook trimmed on tariffs

Fibre2Fashion

05-06-2025

PVH Corp has reported a revenue of $1.984 billion for the first quarter (Q1) of fiscal 2025 (FY25) ended May 4, up 2 per cent year-on-year (YoY) and ahead of guidance. Non-GAAP earnings per share (EPS) stood at $2.30, surpassing forecasts of $2.10 to $2.25, while GAAP EPS was $0.88, impacted primarily by a $480 million noncash goodwill and intangible asset impairment.
PVH Corp's Q1 FY25 revenue has risen by 2 per cent YoY to $1.984 billion, beating guidance. Non-GAAP EPS was $2.30, while GAAP EPS stood at $0.88 due to a $480 million impairment. EMEA and Americas grew; APAC declined. Tommy Hilfiger rose 3 per cent; Calvin Klein was flat. FY25 EPS guidance was cut to $10.75â€'$11.00 due to tariffs; Q2 EPS seen at $1.85â€'$2.00.
'We drove solid first quarter results, which included low-single digit revenue growth and non-GAAP earnings per share above our guidance,' said Zac Coughlin, chief financial officer.
Regionally, Europe, the Middle East and Africa (EMEA) revenue rose 5 per cent (4 per cent constant currency), driven by growth in both wholesale and direct-to-consumer businesses. Americas revenue grew 7 per cent (8 per cent constant currency), led by wholesale gains and the in-house transition of previously licensed women's products, despite a mid single-digit drop in direct-to-consumer sales.
Asia-Pacific (APAC) revenue declined 13 per cent (11 per cent constant currency), impacted by a shift in the Lunar New Year sales period and a challenging consumer environment in China, the company said in a media release.
Tommy Hilfiger recorded a 3 per cent revenue increase, whereas Calvin Klein's revenue was unchanged from the prior year period.
'In Q1, we continued to tap into the global consumer love for Calvin Klein and Tommy Hilfiger, delivering revenue growth versus last year and ahead of guidance. Calvin Klein saw one of its most impactful product launches in years with the Icon Cotton Stretch franchise, amplified by the viral Bad Bunny campaign. Tommy Hilfiger tapped into its lifestyle DNA with rich product storytelling around seasonal newness of Tommy classics to drive growth and built momentum for the brand's collaboration with the biggest movie launch of the summer: F1 The Movie,' Stefan Larsson, chief executive officer, commented.
Gross margin fell to 58.6 per cent from 61.4 per cent, reflecting an unfavourable channel mix, increased promotional activity, and product delays. Inventory rose 19 per cent due to early seasonal buys and core product investments. EBIT on a non-GAAP basis was $160 million versus $195 million a year earlier.
PVH reaffirmed its full-year FY25 revenue guidance but lowered its non-GAAP EPS forecast to $10.75–$11.00 from a prior range of $12.40–$12.75, citing a $1.05 per share unmitigated impact from tariffs on US imports. Operating margin is now projected at approximately 8.5 per cent (non-GAAP), down from 10 per cent in FY24.
Q2 revenue is expected to rise modestly, with non-GAAP EPS guidance set at $1.85–$2, down from $3.01 in the prior-year quarter.
'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,' Larsson continued.
'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business. Our focus remains on taking proactive measures, including investing in cut-through marketing campaigns and delivering increasing cost efficiencies through execution of our Growth Driver 5 multi-year cost savings initiative, that will improve our trajectory in the second half,' Coughlin said.
Fibre2Fashion News Desk (HU)