On March 31, U.S.-based fashion company PVH Corp. announced its financial results for the fourth quarter and full year of 2025, reporting that both revenue and earnings exceeded guidance. Growth was driven by its two core brands, Calvin Klein and Tommy Hilfiger, signaling a recovery in top-line performance.
Fourth-quarter revenue reached $2.505 billion, representing a 6% increase year-over-year. On a constant currency basis, revenue remained flat, but still outperformed prior guidance, which had projected a slight decline. Full-year revenue rose 3% year-over-year to $8.95 billion, landing in line with expectations.
By brand, Tommy Hilfiger delivered strong growth with a 7% increase year-over-year, while Calvin Klein recorded a 3% rise. Regionally, the Americas saw growth led by wholesale performance, and EMEA also posted gains. In contrast, Asia-Pacific revenue declined, impacted in part by the timing of the Lunar New Year.
Structural Transformation and Brand Elevation Under the PVH+ Plan
A key driver behind the company’s performance has been the continued execution of its strategic initiative, the “PVH+ Plan.” Through product innovation and increased marketing investment, PVH has been strengthening the global presence of both brands.
Chief Executive Officer Stefan Larsson commented, “We delivered a strong fourth quarter and finish to the year, driven by the strength of our two iconic global brands, Calvin Klein and TOMMY HILFIGER, and the continued disciplined execution of our PVH+ Plan.”
Regarding the outlook for 2026, he added, “Building on our performance in 2025, we have started 2026 and the important Spring season with positive momentum, and we expect DTC growth in both brands and across all regions for the full year.”
The company is also advancing brand visibility through initiatives such as Tommy Hilfiger’s partnership with a Formula 1 team, the appointment of NFL star Travis Kelce as an ambassador, and global campaigns featuring high-profile talent for Calvin Klein.
Profit Pressured by Tariffs and Restructuring Costs
Despite top-line growth, profitability faced notable pressure. For the full year 2025, EBIT on a non-adjusted basis declined by 70% year-over-year to $231 million. This was primarily due to total costs of approximately $560 million, including around $480 million in goodwill and intangible asset impairment charges.
Gross margin also declined from 59.4% to 57.5%, impacted by a more promotional retail environment and tariffs on goods imported into the United States.
Even when excluding these one-off factors, adjusted EBIT totaled $791 million, reflecting only a moderate decline compared to the previous year.
2026 Outlook: Modest Growth Amid Tariff Pressures
Looking ahead, PVH expects revenue in 2026 to remain flat to slightly increase compared to 2025. Operating margin is projected to remain stable at approximately 8.8% on a non-GAAP basis.
However, tariffs on goods imported into the U.S. are expected to continue weighing on performance, with an estimated negative impact of approximately 215 basis points on operating margin. EPS is also projected to be pressured by around $3.30 per share due to tariffs.
The company plans to continue focusing on DTC expansion, digital investment, and global brand campaigns in 2026. While revenue shows signs of recovery, navigating external pressures on profitability will remain a key challenge.
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