The gross margin in Q2 increased from 60.1 percent to 57.7 percent, while the invention increased 13 percent as the company invested in the availability of core products and prepared for the demand of Q3.
PVH Corp has increased the revenue growth of 4 percent of the Q2 FY25 to $ 2.167 billion, which is inspired by the US wholesale and brand strength in Calvin Klein and Tommy Hilfiger. The non-GAAP EPS was $ 2.52 above the guidance. While the gross margin fell to 57.7 percent, PVH raised its entire year’s revenue approach to a low single point, re-confirmed the EPS of $ 10.75- $ 11, and estimated Q3 EPS of $ 2.35- $ 2.50.
Income (EPS) per share came in a GAAP basis in $ 4.63 and non-GAAP basis in $ 2.52, defeating the guidance of $ 1.85-2.00. The EBIT was at $ 178 million on a non-GAAP basis, slightly below $ 189 million last year, reflecting the Tariff, High Goods and GDP from the promotional activity.
Region-wise, Europe, Middle East and EMEA revenue increased by 3 percent. The US revenue increased by 11 percent, which is operated by an increase in wholesale business with flat revenue in DTC business. The revenue of Asia Pacific (APAC) decreased by 1 percent from a decrease in wholesale business. Revenue in DTC business was flat on the basis of continuous currency despite a challenging consumer environment in the region, especially in China, PVH said in a press release.
Brand-wise, Tommy Hilfiger’s revenue increased by 4 percent (was flat based on a continuous currency), and increased 5 percent of Calvin Klein 5 percent YOY (increased by 3 percent based on a continuous currency).
Channel-wise, DTC revenue increased by 4 percent compared to the period of earlier year (was flat on a constant currency). Ownership and operated store revenue increased by 4 percent compared to the period of the previous year (continuously based on currency). Ownership and operated digital commerce revenue increased by 3 percent. Wholesale revenue increased by 6 percent (2 percent increase depending on continuous currency).
“In the second quarter, through our disciplined execution of our PVH+ scheme, we continued to bow down to the strength of the iconic brand of Calvin Klein and Tommy Hilfiger. For both brands, for both brands, our step-up action products during the quarters, our brand-brand-brand-brand-beding flywheel in the form of products, marketing and marketing during the quarters, said to strengthen our brand-branding flywheel Stephen Larsen, Chief Executive Officer (CEO) in PVH Corp (CEO)
“Calvin Klein showed a continuous growth in underwear and fashion denim, which was the largest product innovation so far, which is enhanced by Mega Talent like Bad Bani. The summer season of Tommy Hilfiger was successfully extended by a strong campaign around the summer blockbuster film: F1 the Movie, and US SAI SAL GP Racing teams,” Larnser.
For 2025 throughout the year, PVH hopes that the first flat-to-fight growth will increase slightly in single points. This re-confirmed its operating margin guidance at about 8.5 percent (non-GAAP) and maintained its full-year income (EPS) Outlook at $ 10.75- $ 11 (non-GAAP).
In a net negative tariff effect of $ 1.15 per share, this guidance factor, partially offset by mitigation measures, as well as $ 0.45 per share from favorable forex translation.
For the third quarter of FY25 (Q3), PVH project revenue is slightly more flat for yoy, EPS is expected in the range of $ 2.35- $ 2.50 (non-GAAP).
Reiterating its strategic priorities, PVH stated that the product focuses on increasing the desirability of its major brands Calvin Klein and Tommy Hilfiger by increasing investment in innovation, global marketing campaigns and market execution. The company is also stopping further stock repair in 2025, already $ 561 million in procurement during the first quarter.
Larsen said, “We expect 2025 that we increase our return, and we are increasing our reported revenue guidance and confirming our non-GAAP income approach for the whole year, reflecting our confidence in our ability to execute with the effects despite uncertain global macroinements.”
Fibre2fashion news desk (sg)
