PVH sales lift on Tommy Hilfiger brand growth, cuts full-year profit forecast on tariff impact
owner PVH Corp. on Wednesday announced first-quarter sales beat expectations to rise 2% to $1.984 billion, thanks to growth at its Tommy Hilfiger brand.
The New York-based company said Calvin Klein brand sales were flat at for the three months ending May 4, outpaced by a 3% sales uptick at brother brand, Tommy Hilfiger, driven by growth in EMEA and Americas.
By region, Americas revenue jumped 7%, thanks to growth in the wholesale business, partially offset by a mid single-digit decline in the direct-to-consumer business, while EMEA sales rose 5%, thanks to both distribution channels in the region.
Elsewhere, APAC sales plummeted 13%, primarily due to a 3% decline linked to the timing of the Lunar New Year shopping period, which was mostly in the fourth quarter of 2024, and a challenging consumer environment, particularly in China.
Finally, licensing revenue decreased 2%, due to the transition of certain previously licensed women's product categories in house.
During the quarter, to apparel company swung to a $44.8 million, compared to a net income of $151.4 million in the prior-year period. Loss per share came to $0.88, compared to an earnings per share of $2.59.
'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'," said Stefan Larsson, chief executive officer, PVH.
'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.'
Looking ahead, PVH reaffirmed it sales outlook of flat to increase slightly for the full year. However, the firm cut is profit forecast with adjusted earning per share now expected to come in at $10.75 to $11, down from $12.40 to $12.75 in the firm's previous forecast earlier in the year, citing the negative impact related to the tariffs currently in place for goods coming into the U.S.
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