The US fashion group PVH Corporation was able to increase its sales in the 2025/26 financial year. However, profit fell significantly due to adverse general conditions and negative special effects. Overall, the results that the parent company of the brands Calvin Klein and Tommy Hilfiger published on Tuesday were above market expectations.
Sales are increasing at Tommy Hilfiger and Calvin Klein
In the most recent fiscal year, which ended on February 1, group sales reached $8.95 billion (7.74 billion euros), exceeding the previous year’s level by 3.4 percent. Adjusted for exchange rate changes, revenue increased by 0.5 percent.
Both core brands contributed to growth. Tommy Hilfiger’s sales rose 3.9 percent (+0.5 percent at constant currency) to $4.77 billion. Calvin Klein achieved an increase of 2.8 percent (currency-adjusted +0.5 percent) to 3.96 billion US dollars.
Higher tariffs and value adjustments are weighing on earnings
The group’s gross margin fell from 59.4 to 57.5 percent year-on-year. The company justified this with higher import tariffs to the USA, increased freight costs and more extensive discounts. Because the group also had to make extensive value adjustments, earnings before interest and taxes (EBIT), which had been $772.3 million in the previous year, fell by 70 percent to $230.6 million. Net profit fell from 598.5 to 25.3 million US dollars (21.9 million euros).
Adjusted for special effects, annual net income fell by almost 17 percent to $553.2 million. Adjusted earnings per share shrank from $11.74 to $11.40. However, not least thanks to surprisingly strong results in the fourth quarter, it was well above the company’s forecast, which had predicted between $10.85 and $11.00.
Management predicts further progress
For the current 2026/27 financial year, management expects further small progress despite continued difficult market conditions. According to current forecasts, sales will increase slightly and earnings per share, adjusted for special items, will increase to $11.80 to $12.10.
