The US clothing group PVH Corporation did better than expected in the second quarter of 2025.
Despite a challenging environment, the company was able to increase its sales and its profit, the parent company of brands such as Calvin Klein and Tommy Hilfiger said on Wednesday. The core brands, which further expand their market presence through cooperation and marketing measures, had a significant part in this.
PVH CEO Stefan Larsson said that “noticeable dynamics” were achieved in the quarter, which made growth possible despite the difficult framework.
Underwear and prominence as a growth driver
In the reporting period, the group turnover rose four percent to $ 2.17 billion (1.87 billion euros). The business in North and South America developed particularly strongly, where the proceeds increased in two digits. In Europe, growth was somewhat more cautious due to shifted wholesale deliveries (plus four percent), while sales in Asia decreased slightly (minus one percent). The decline in the region was primarily justified with weaker demand in wholesale in China.
Calvin Klein again proved to be a growth driver. The label increased its turnover by five percent to $ 980 million. This development was particularly due to the central product categories underwear and denim. The brand also inspired prominent support from the singer Bad Bunny as a campaign star, according to the message.
Prominence also helped Tommy Hilfiger to turn a turnover of $ 1.14 billion. The growth of four percent was attributed in particular to the campaign around the racing film “F1 The Movie” and the partnership with the US Sail GP racing team.
The smaller heritage of Brands, a segment in which the other group brands are bundled, achieved $ 51 million and thus remained almost stable.
US tariffs burden gross margin
The company’s net profit amounted to $ 224.2 million after $ 158.0 million in the same period last year. Adjusted for special effects, the profit fell to $ 122.2 million, a decrease of 28 percent. The adjusted profit per share was $ 2.52 above its own forecast of $ 1.85 to $ 2.00.
However, the gross margin fell from 60.1 to 57.7 percent. As reasons for this, PVH cited a stronger discount environment, higher tariffs on imports to the USA and additional costs due to delivery delays in Calvin-Klein products.
For the year 2025, PVH expects slight sales growth in the lower single -digit percentage range. The operational margin is said to be around 8.5 percent. The forecast for the result adjusted for special effects per share, which was easily corrected downwards in the first quarter, remains $ 10.75 to $ 11.00.
“We go to the important autumn season with a strong product pipeline and globally relevant campaigns,” said Larsson. “Our goal remains to further expand Calvin Klein and Tommy Hilfiger into the most coveted brands worldwide.”