PVH Corp. reported third‑quarter 2025 results that beat earnings expectations but fell short of revenue forecasts. Adjusted earnings per share rose to $2.83, a $0.27 or 10.5% beat over the consensus estimate of $2.56, while revenue reached $2.29 billion, a 1.7% year‑over‑year increase that missed the lower consensus estimate of $2.27 billion but matched the higher estimate of $2.30 billion. The company also announced the departure of Chief Financial Officer Zac Coughlin, who will leave in early 2026.
Revenue growth was driven by strong performance in the company’s flagship brands. Calvin Klein and Tommy Hilfiger together generated $1.78 billion in sales, up 2.3% from the same period last year, while the EMEA region contributed $1.11 billion, the Americas $682.8 million, and APAC $391.9 million. Compared with Q3 2024, revenue was $2.255 billion and adjusted EPS was $3.03, indicating that the current quarter’s growth is modest relative to the prior year’s pace.
Gross margins contracted by 210 basis points year‑over‑year, largely due to tariff‑related cost increases and a more promotional pricing environment. The company’s Growth Driver 5 Actions initiative has helped offset some of the pressure, but the net effect was a decline in operating margin that signals ongoing headwinds from trade policy and inventory build‑ups.
Management reaffirmed its full‑year outlook, maintaining a low‑single‑digit revenue growth target and a high‑end Q4 EPS guidance of $3.20 to $3.35 per share. The guidance reflects confidence in the company’s brand‑control strategy and the expansion of its direct‑to‑consumer channels, while the unchanged operating‑margin target indicates a belief that cost‑control measures will continue to support profitability.
CEO Stefan Larsson highlighted the continued strength of Calvin Klein and Tommy Hilfiger, noting that “Calvin drove growth in key categories such as underwear and denim, while Tommy delivered solid performance in lifestyle segments.” He added that the company’s “direct‑to‑consumer” channel is outperforming wholesale, especially in the Americas and APAC, and that the PVH+ Plan remains on track. CFO Zac Coughlin, who is leaving the company, emphasized that the firm has “unlocked significant cost efficiencies through Growth Driver 5 actions” and that the transition will be smooth.
Investors reacted negatively to the earnings release, citing the margin contraction, rising inventory levels, and the CFO’s departure as key concerns. The market’s focus on these factors underscores the importance of maintaining profitability in a tariff‑heavy environment and the need for stable financial leadership.
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