PVH Q2 Deep Dive: Brand Investments and Product Innovation Face Margin Headwinds

August 28, 2025 at 09:55 AM EDT

PVH Cover Image

Fashion conglomerate PVH (NYSE: PVH) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 4.5% year on year to $2.17 billion. Its non-GAAP profit of $2.52 per share was 25.9% above analysts’ consensus estimates.

Is now the time to buy PVH? Find out in our full research report (it’s free).

PVH (PVH) Q2 CY2025 Highlights:

Revenue: $2.17 billion vs analyst estimates of $2.12 billion (4.5% year-on-year growth, 2.3% beat)
Adjusted EPS: $2.52 vs analyst estimates of $2.00 (25.9% beat)
Adjusted EBITDA: $201.9 million vs analyst estimates of $212.1 million (9.3% margin, 4.8% miss)
Management reiterated its full-year Adjusted EPS guidance of $10.88 at the midpoint
Operating Margin: 6.1%, down from 8.4% in the same quarter last year
Constant Currency Revenue rose 1.2% year on year (-4.9% in the same quarter last year)
Market Capitalization: $3.93 billion

StockStory’s Take

PVH’s second quarter results reflected stronger than expected sales and profit, with management highlighting a combination of improved product innovation, impactful marketing campaigns, and sequential gains in direct-to-consumer channels. CEO Stefan Larsson credited category-led growth in Calvin Klein’s underwear and denim, as well as the successful relaunch of women’s products in North America, as key factors. Larsson cited the “powerful product category offense, tied to strong product innovation, connected to a cut-through campaign with globally relevant talent” for the company’s momentum this quarter.

For the remainder of the year, PVH’s outlook is shaped by increased investment in marketing and ongoing cost discipline, while management remains focused on navigating tariff-related headwinds. CFO Zac Coughlin emphasized the company’s plans to mitigate rising tariff costs over time, stating, “We are evaluating and actioning a variety of steps looking at every point along our value chain to mitigate the impact.” Management also underscored the importance of global flagship store expansion and continued product launches in strengthening the Calvin Klein and Tommy Hilfiger brands.

Key Insights from Management’s Remarks

PVH’s management attributed the quarter’s performance to product-driven brand momentum, expanded marketing, and strategic operational changes, while also addressing margin pressures from external factors.

Category-led product innovation: Calvin Klein’s men’s underwear franchise, driven by the Bad Bunny campaign, and new denim styles delivered double-digit global growth, while Tommy Hilfiger expanded into new product categories such as dress casual menswear and lifestyle collaborations.
Marketing investment and celebrity campaigns: A significant increase in marketing spend amplified both brands, leveraging globally recognized talent to boost consumer engagement and brand awareness, particularly in high-growth regions and digital channels.
North America wholesale and DTC gains: The intake and relaunch of Calvin Klein women’s products in North America, combined with digital channel growth and improved outlet traffic, led to sequential improvements in direct-to-consumer performance.
Operational improvements at Calvin Klein: Management reported that recent operational challenges in Calvin’s global product capabilities have been addressed, leading to on-time deliveries and targeted margin improvements for upcoming product seasons.
Tariff and cost headwinds: The company experienced margin pressure due to higher tariff rates, with management outlining ongoing efforts to offset these impacts through supply chain efficiencies, selective price increases, and cost-saving initiatives under its multiyear transformation plan.

Drivers of Future Performance

PVH’s forward guidance is shaped by tariff impacts, strategic marketing investment, and the ongoing expansion of both core brands’ product and geographic reach.

Tariff mitigation and cost control: Management expects continued pressure on gross margins from higher tariffs, but plans to offset some costs through supply chain optimization, targeted pricing, and operational efficiencies—though full mitigation will take time.
Brand and product expansion: Ongoing investments in new product launches, expanded marketing, and flagship store openings are expected to drive long-term growth for Calvin Klein and Tommy Hilfiger, especially in key international markets.
Macro and consumer uncertainty: Management acknowledged persistent global economic uncertainty and uneven consumer trends, particularly in the Americas and Asia-Pacific, making sustained sales growth dependent on brand relevance and marketplace execution.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be closely monitoring (1) the effectiveness of tariff mitigation strategies and their impact on margins, (2) the commercial performance of new product launches and flagship store openings in key global markets, and (3) sequential improvements in direct-to-consumer and wholesale channels, particularly in North America and Europe. Execution on these priorities will be critical for sustaining growth.

PVH currently trades at $82.71, in line with $82.49 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

Stocks That Trumped Tariffs

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems