The US fashion group PVH Corporation exceeded management’s goals in the third quarter of the 2025/26 financial year. The parent company of the Calvin Klein and Tommy Hilfiger brands then adjusted its annual forecasts accordingly on Wednesday evening.
In the most recent quarter, which ended on November 2nd, consolidated sales reached around 2.29 billion US dollars (1.97 billion euros), exceeding the corresponding previous year’s level by 1.7 percent. Adjusted for exchange rate changes, revenue fell by 0.8 percent, but this was above the company’s expectations.
Both core brands are achieving sales growth
Both core brands contributed to growth. Tommy Hilfiger’s quarterly sales rose by 1.4 percent (-1.6 percent at constant currency) to just under 1.22 billion US dollars. According to the company, this was due not least to the higher demand for products from important lifestyle areas.
Thanks to growth in core categories such as underwear and denim, Calvin Klein achieved an increase of 2.4 percent (+0.4 percent at constant currencies) and came to 1.02 billion US dollars. Sales from the group’s smaller labels totaled $58.4 million, down 3.2 percent from the same period last year.
Higher tariffs are weighing on earnings
The group’s gross margin fell from 58.4 to 56.3 percent year-on-year. The company justified this with higher import tariffs to the USA, increased freight costs and more extensive discounts.
Earnings before interest and taxes (EBIT) therefore fell by 1.3 percent to $180.8 million compared to the same quarter last year. Reported net profit slipped from $131.9 to $4.2 million (€3.6 million) due to higher tax charges.
Adjusted for special items, quarterly net income fell by 20.6 percent to $135.4 million. Adjusted earnings per share shrank from $3.03 to $2.83. However, this was well above the company’s forecast, which had promised between $2.35 and $2.50.
Management is clarifying its annual forecasts
In view of the latest results and the fact that, according to the company, the start of the Christmas business went “according to plan”, management clarified its forecasts for the full year. Sales growth of a low single-digit percentage is now expected. Until now, the prospect of stable or slightly improved revenues had been promised.
The target range for earnings per share adjusted for special items, which had previously been between $10.75 and $11.00, was narrowed to between $10.85 and $11.00.