PVH (NYSE:PVH) executives said the company finished fiscal 2025 with fourth-quarter results ahead of its guidance and entered 2026 with “positive momentum,” even as tariffs and an uneven consumer environment remain key variables.
Fourth-quarter results topped guidance as gross margin improved sequentially
Chief Executive Officer Stefan Larsson said PVH “exceeded our guidance across revenue, operating profit, and EPS” in the fourth quarter, with revenue up mid-single digits on a reported basis and flat in constant currency. Larsson highlighted better-than-expected gross margin performance, noting “sequential improvement across all regions.”
Stone said PVH mitigated “over 40%” of increased tariffs in the quarter. She also pointed to “significant sequential improvement in Calvin Klein gross margins in the fourth quarter” as the company worked through “transitory operational issues” previously discussed.
Full-year 2025: Revenue growth returned; costs and cash flow supported buybacks
For the full year, Larsson said PVH delivered on its guidance and “returned to revenue growth,” with a non-GAAP operating margin of 8.8% that was “above our guidance, including the impact of tariffs.” Excluding the gross impact from tariffs, Larsson said operating margin was 9.6%.
Stone reported 3% reported revenue growth for fiscal 2025, up slightly in constant currency, with non-GAAP EPS of $11.40. She said gross margin of 57.5% was lower than the prior year, including an approximately 80 basis point tariff impact, and that PVH mitigated roughly 30% of tariff impacts for the year.
Management also emphasized cost discipline and capital returns. Larsson said the company generated “over 200 basis points of annualized cost savings,” ended the year with inventory up 5% (or up 1% excluding tariffs), and returned “over $560 million of capital to shareholders” through repurchases, representing 15% of shares outstanding. Stone said free cash flow exceeded $500 million and PVH repurchased nearly 8 million shares through an accelerated program and open-market purchases.
Brand and regional commentary: Product “newness” and marketing tied to full-price selling
Larsson credited performance to focus on hero categories and marketing behind Calvin Klein and Tommy Hilfiger. For Calvin Klein, he said the company “reinvented our biggest underwear franchises” with the launch of Icon Cotton Stretch, amplified with Bad Bunny and Rosalía. He said the franchise grew 20% in men’s and 13% in women’s, helping the broader underwear business rise low single digits. Larsson also said fashion denim, representing more than half of Calvin denim, grew high single digits.
For Tommy Hilfiger, Larsson pointed to cultural moments and partnerships, including Cadillac Formula 1 and a new partnership with Liverpool Football Club. He said the Liverpool announcement became “the number one most engaged post ever” on Tommy’s social channels, driving “immediate spikes in e-commerce traffic.”
Regionally, Larsson described Europe as pressured by a muted consumer in the second half, with full-year constant-currency revenue down 1%. In the fourth quarter, Europe revenue was down low single digits in constant currency, with wholesale down 1% and DTC down mid-single digits, as lower in-season replenishment weighed on wholesale and demand stayed muted.
In the Americas, Larsson said PVH delivered mid-single-digit growth for the year, led by wholesale and e-commerce, while store traffic softness drove total DTC down low single digits. In the fourth quarter, the region grew 4%, driven by wholesale and digital growth; DTC declined mid-single digits due to lower store traffic, partially offset by higher average unit retail (AUR). Stone said wholesale in the Americas grew high teens, reflecting a mid-single-digit increase in the base business plus impacts from bringing certain women’s categories in-house.
In Asia Pacific, Larsson said results improved sequentially through the year. Stone said fourth-quarter Asia Pacific revenue was down 2% in constant currency, including an approximately 4% headwind from Lunar New Year timing; excluding that timing effect, the region returned to growth. Larsson said PVH saw “good conversion and positive traffic improvements” in key markets including China and Japan.
2026 outlook: Slight revenue growth, steady operating margin, heavier tariff headwind
Looking to fiscal 2026, Larsson said PVH expects total revenue to grow slightly on a reported basis and be flat to up slightly in constant currency, with planned DTC growth across both brands and all regions. Stone said PVH projects operating margin of approximately 8.8%, in line with 2025, despite an expected “negative 215 basis point gross tariff impact” for the year.
Stone said the company’s guidance assumes a 15% tariff rate on goods coming into the U.S. beginning Feb. 24, 2026, and does not assume any tariff refunds. She said PVH expects approximately $195 million of gross tariff cost in EBIT, or about $3.30 per share, under those assumptions. PVH expects to mitigate about 60% of tariff impacts for the full year and “exit the year with over 75% mitigation on an annualized basis heading into 2027,” according to Stone.
PVH guided to full-year EPS of $11.80 to $12.10, compared with $11.40 in 2025. The company also said it plans at least $300 million in share repurchases and approximately $250 million in capital spending, which Stone said will support store, shop-in-shop, and digital investments.
Stone also flagged geopolitical and trade-policy uncertainty, including exposure to the Middle East. She said PVH’s Middle East business, excluding Turkey, represents about 1% of revenue but approximately 7% of profit, and guidance excludes potential impacts from an expanded conflict.
First-quarter 2026: Tariffs and marketing expected to pressure margins
For the first quarter, Stone projected reported revenue up slightly year over year and down low single digits in constant currency, as DTC growth is offset by lower wholesale. By region, she said constant-currency revenue is expected to be down mid-single digits in EMEA due to macro conditions and shipping timing; down slightly in the Americas due to a wholesale timing shift; and up low single digits in Asia Pacific, helped by favorable Lunar New Year timing.
Stone said first-quarter gross tariff impact is expected to be approximately 230 basis points, with about half offset through mitigation actions. She also said SG&A as a percent of revenue is expected to rise about 150 basis points, including an approximately 100 basis point increase in marketing spend, as the company front-loads investment “to amplify our cut-through campaigns and drive brand heat early in the year.”
As a result, PVH projected first-quarter operating margin of 6% to 6.5%, down from 8.1% a year earlier, and EPS of $1.65 to $1.80, compared with $2.30 in the prior-year period.
During the Q&A, Larsson said PVH’s consumer research shows Calvin Klein and Tommy Hilfiger outperform peers with Gen Z and younger millennial consumers, particularly “status-oriented shoppers and style enthusiasts,” and that the company is using those insights to expand from “2–3 categories” of strength to the “top 5 categories,” which he said represent over 60% of the business.
Larsson also discussed a surge of consumer interest tied to “Love Story,” saying the show drove increased search and traffic for Calvin Klein and that it reinforces the brand’s cultural connection to 1990s style. He cited data indicating more than 40 million people have watched the show and called it Hulu’s most-streamed show ever, adding that PVH is leaning into the “nineties focus” in product and marketing.
Separately, Larsson highlighted Tommy Hilfiger’s addition of Travis Kelce as a “global brand ambassador and creative collaborator,” with campaigns expected to begin in fall 2026, while reiterating that PVH plans a “consistent drumbeat” of product innovation and brand partnerships to support growth.
About PVH (NYSE:PVH)
PVH Corp is a leading global apparel company known for its portfolio of iconic brands in the dress shirt, sportswear and lifestyle categories. The company designs, markets and distributes clothing, accessories and fragrances under both owned and licensed brands. PVH’s core brand holdings include Calvin Klein and Tommy Hilfiger, complemented by a range of heritage labels such as Van Heusen, IZOD, ARROW, Warner’s and Olga.
PVH’s operations span the entire value chain from product design and development to manufacturing, marketing and distribution.
