• Revenue Growth: Up 2% on both a reported and constant currency basis.

• Operating Margin: 8.1% within guidance range.

• Earnings Per Share (EPS): $2.30, slightly ahead of guidance.

• Gross Margin: 58.6%, a decrease of 280 basis points compared to last year.

• Inventory Increase: Up 19% compared to Q1 last year.

• Direct-to-Consumer Revenue: Down 3% both reported and in constant currency.

• Wholesale Revenue: Up 7% on a constant currency basis, 6% on a reported basis.

• EMEA Revenue: Up 4% in constant currency.

• Americas Revenue: Up 7%, driven by high-teens growth in wholesale.

• Asia Pacific Revenue: Down 11% on a constant currency basis.

• Licensing Revenue: Down 2% versus last year.

• SG&A as a Percent of Revenue: 50.5%, a 90 basis point improvement versus last year.

• Shareholder Returns: Over $550 million returned through share repurchases.

• Warning! GuruFocus has detected 7 Warning Signs with CIEN.

Release Date: June 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PVH Corp (NYSE:PVH) reported a 2% revenue growth, exceeding their guidance, driven by disciplined execution of the PVH+ Plan.

• The company delivered stronger than expected non-GAAP EPS, also above their guidance.

• Calvin Klein's innovative product franchise, Icon Cotton Stretch underwear, drove a 25% increase in sales globally.

• Tommy Hilfiger's strategic product innovations and seasonal collections have led to stronger performance, particularly in Europe.

• PVH Corp (NYSE:PVH) returned over $550 million to shareholders through share repurchases during the quarter.

Negative Points

• The company is facing a challenging macroeconomic environment, with decreased consumer sentiment and traffic trends, particularly in North America and China.

• PVH Corp (NYSE:PVH) experienced operational challenges with Calvin Klein's global product creation, impacting margins.

• The company is dealing with a more promotional environment, leading to increased discounting and impacting gross margins.

• Tariffs are expected to have a $65 million unmitigated impact on EBIT for the full year.

• Inventory levels increased by 19% due to lower than expected demand for basics and essentials.

Q & A Highlights

Q: Stefan, you mentioned decreased traffic and increased promotional levels. What gives you confidence that Calvin Klein and Tommy Hilfiger still have good momentum with consumers? A: Stefan Larsson, CEO: Despite the challenging macro environment, where we lean into consumer love for Calvin Klein and Tommy Hilfiger, we see strong results. For example, our new product innovation in Calvin Klein men's underwear drove 25% growth in a major franchise. Similarly, fashion denim grew by 14%. We plan to expand these successful strategies across more of our business.