American clothing company PVH Corp has reported a modest two per cent rise in third quarter (Q3) revenue for the period ended November 2, 2025, to $2.294 billion, though growth turned slightly negative on a constant-currency basis.
PVH has posted a two per cent Q3 revenue rise to $2.294 billion, though constant-currency sales dipped slightly.
Regional trends were mixed, wholesale grew and DTC was flat.
Margins fell on tariffs and promotions, pushing non-GAAP EBIT down.
EPS beat guidance, and PVH raised full-year EPS to $10.85–$11.00 while narrowing revenue guidance to the high end.
Performance varied across regions: EMEA rose four per cent (down two per cent in constant currency), Americas increased two per cent, and APAC slipped one per cent but was flat after currency effects.
Wholesale revenue increased four per cent compared to the prior year period (increased one per cent on a constant currency basis), primarily driven by the increase in Americas partially offset by the decreases in APAC and EMEA.
“In Europe, we saw a tougher backdrop entering the fall, while in the Americas, our digital channels continued to outperform, and in APAC we again exceeded expectations, driven by strong DTC performance with a notable improvement in China. Despite the continued uneven global consumer environment, we delivered an on-plan start to the Holiday season and Black Friday week in both Europe and North America,” Stefan Larsson, chief executive officer, commented.
By brand, Tommy Hilfiger revenue rose one per cent (down two per cent in constant currency) and Calvin Klein climbed two per cent (flat in constant currency). Licensing revenue fell 11 per cent due to the same product transitions.
Gross margin contracted to 56.3 per cent from 58.4 per cent, reflecting higher US tariffs, a more promotional environment, freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays. Inventory rose three per cent, including a two per cent tariff impact.
“Through disciplined PVH+ Plan execution, we continued to lean into the iconic brand strength of Calvin Klein and Tommy Hilfiger, expanding innovation across product and delivering cut-through marketing. Calvin drove growth in key categories like underwear and fashion denim, while Tommy Hilfiger delivered growth in core lifestyle categories, elevating style icons through the Hilfiger Racing Club campaign,” Larsson continued.
GAAP EBIT slipped to $181 million, while non-GAAP EBIT fell to $202 million from $236 million, primarily due to margin pressure. GAAP EPS plunged to $0.09 from $2.34 a year earlier, affected by prior impairment charges and a 97.4 per cent effective tax rate.
Non-GAAP EPS stood at $2.83, ahead of guidance but below last year’s $3.03. EPS included a net negative tariff impact of about $0.37 per share and a $0.14 currency tailwind. Net interest expense rose to $21 million, the company said in a financial release.
PVH narrowed its full-fiscal 2025 revenue outlook to low single-digit growth, reaffirmed an 8.5 per cent non-GAAP operating margin, and lifted its EPS guidance to $10.85–$11. The forecast includes a $1.05 per-share unmitigated tariff impact and a $0.45 currency benefit. Fourth-quarter EPS is projected at $3.2–$3.35, with tariffs again expected to weigh significantly.
The company cautioned that global trade policy uncertainty and the related impact on the broader macroeconomic environment could materially affect its 2025 outlook.
“For the third quarter, we delivered on our overall revenue plan and exceeded our EPS guidance despite an ongoing choppy macroeconomic backdrop, and we are narrowing our full year reported revenue and non-GAAP EPS guidance towards the high-end of our prior ranges. We continue to manage our business prudently, investing in key brand accretive investments, and have unlocked significant cost efficiencies through our Growth Driver 5 actions,” said Zac Coughlin, chief financial officer.
“We are also investing in key growth initiatives, especially marketing, and freed up over 200 basis points in SG&A efficiencies over the past 18 months. Looking ahead, we are reaffirming our full-year constant currency revenue and operating margin outlook and narrowing our reported revenue and non-GAAP EPS outlook to the high end of our previous ranges, reflecting our confidence in our brands,” Larsson said.
Fibre2Fashion News Desk (HU)
