Strong Finish Led By Calvin Klein And Tommy Hilfiger As Regional Volatility And Tariffs Shape The Year Ahead
PVH Corp. closed 2025 with stronger-than-expected fourth-quarter results, as growth across Calvin Klein and Tommy Hilfiger helped the company outperform guidance on both revenue and profitability, despite continued macroeconomic and currency pressures.
Fourth-quarter revenue rose 6 percent to $2.5 billion, exceeding expectations, while remaining flat in constant currency. Non-GAAP operating margin reached 10 percent, above the company’s guidance of approximately 9 percent, even as tariffs created a roughly 170 basis point drag. Non-GAAP earnings per share came in at $3.82, also ahead of forecast.
For the full year, revenue increased 3 percent to $8.95 billion, in line with guidance, while non-GAAP operating margin reached 8.8 percent, slightly above expectations despite ongoing cost headwinds.
“We delivered a strong fourth quarter and finish to the year, driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and the continued disciplined execution of our PVH+ Plan,” said Chief Executive Officer Stefan Larsson.
Performance in the quarter reflected a mixed regional picture. In EMEA, revenue increased 8 percent on a reported basis but declined 3 percent in constant currency, with softness across both direct-to-consumer and wholesale channels. The Americas posted a 4 percent increase, supported by wholesale growth, including the transition of previously licensed women’s categories in-house, though partially offset by declines in direct-to-consumer.
In Asia-Pacific, revenue was flat year over year, or down 2 percent in constant currency, impacted in part by the timing of Lunar New Year, which fell in the prior-year fourth quarter. Underlying performance reflected declines across both wholesale and direct-to-consumer, though the company expects the region to return to growth in 2026.
At the brand level, Tommy Hilfiger outperformed, with revenue up 7 percent reported, or 1 percent in constant currency, while Calvin Klein rose 3 percent reported but declined 1 percent in constant currency.
Channel performance further highlighted the divergence in the business. Wholesale revenue increased 11 percent, or 4 percent in constant currency, driven primarily by strength in the Americas. Direct-to-consumer revenue rose 1 percent reported but declined 3 percent in constant currency, with owned retail flat overall and down across all regions on a currency-adjusted basis. Digital commerce showed relative resilience, increasing 5 percent reported and remaining flat in constant currency, with gains in the Americas and APAC offset by declines in EMEA.
PVH also cited licensing revenue growth of 10 percent, largely due to non-recurring contractual royalties.
The company attributed its overall performance to continued investment in product innovation and marketing, including high-visibility campaigns featuring global talent such as Jung Kook, Dakota Johnson, and Raphinha for Calvin Klein, and partnerships with Cadillac Formula 1, Liverpool Football Club, and Travis Kelce for Tommy Hilfiger. These efforts, combined with ongoing cost discipline, contributed to improved profitability, with more than 200 basis points of annualized cost savings realized through its efficiency initiatives.
Looking ahead, PVH expects revenue to increase slightly in 2026, with operating margins projected to remain stable at approximately 8.8 percent on a non-GAAP basis. However, the outlook includes an estimated 215 basis point negative impact from tariffs, highlighting the growing pressure from global trade dynamics. Non-GAAP earnings per share are projected in the range of $11.80 to $12.10.
“We are continuing to focus on leveraging our increased relevance with the consumer, scaling the impact of our stronger product, and activating cut-through global brand campaigns,” Larsson said, pointing to continued momentum entering the Spring season.
The company expects direct-to-consumer growth across both brands and all regions in 2026, supported by positive wholesale order books in Europe, continued digital expansion in the Americas, and a return to growth in Asia.
PVH also reaffirmed its commitment to shareholder returns, completing $560 million in share repurchases in 2025 and targeting at least $300 million in 2026.
As it enters the new fiscal year, PVH remains focused on strengthening brand positioning and expanding its direct-to-consumer ecosystem, while navigating an increasingly complex external environment shaped by tariffs, currency volatility, and shifting global demand.