PVH CORP. /DE/
For the period ended Aug 3, 2025. Filed Sep 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 3, 2025 · Filed Sep 5, 2025
PVH$89.95-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-04; filed 2025-06-04.
0000078239-25-000052
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-03; filed 2025-09-05.
0000078239-25-000072
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 142 previous paragraphs and 192 current paragraphs.
71 unchanged; 62 reworded; 50 added; 8 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
•We amended in September 2024 Mr. Tommy Hilfiger’s employment agreement, pursuant to which we made a cash buyout of a portion of the future payment obligation (the “Mr. Hilfiger amendment”). We recorded pre-tax costs of $51 million during the third quarter of 2024 in connection with the Mr. Hilfiger amendment.
Current report
•EMEA – Revenue increased $34 million, or 3%, compared to the prior year period, including a positive impact of $64 million, or 6%, related to foreign currency translation. Excluding the impact of foreign currency translation, slight growth in the direct-to-consumer business was more than offset by a decrease in wholesale revenue driven by a shift in the timing of wholesale shipments from the second quarter into the first quarter of this year.
Current report
•APAC –Revenue decreased $5 million, or 1%, compared to the prior year period, including a positive impact of $5 million, or 2%, related to foreign currency translation. Excluding the impact of foreign currency translation, wholesale revenue was down compared to the prior year period and revenue in the direct-to-consumer business was flat, despite a challenging consumer environment in the region, particularly in China.
Current report
•Tommy Hilfiger – Revenue increased 4% compared to the prior year period including a 4% positive foreign currency impact.
Current report
•Calvin Klein – Revenue increased 5% compared to the prior year period, including a 3% positive foreign currency impact.
Current report
•Direct-to-consumer – Revenue increased 4% compared to the prior year period including a 3% positive foreign currency impact.
Current report
SG&A expenses in the second quarter of 2025 were $1.129 billion, or 52.1% of total revenue, compared to $1.083 billion, or 52.2% of total revenue, in the second quarter of the prior year. The 10 basis point decrease was primarily driven by (i) cost savings resulting from the Growth Driver 5 Actions and (ii) cost efficiencies across the business as we take a disciplined approach to managing expenses, partially offset by (iii) an increase in restructuring costs incurred in the second quarter of 2025 in connection with the Growth Driver 5 Actions compared to the prior year period.
Current report
Income Before Interest and Taxes
Current report
•Americas –Income before interest and taxes in thesecond quarter of 2025 was $73 million, or 10.7% of total revenue, compared to $80 million, or 13.0% of total revenue in the second quarter of the prior year. The 230 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue due in part to the leveraging of expenses resulting from the increase in revenue.
Current report
•Corporate and other costs were $210 million in thesecond quarter of 2025, a decrease of $9 million compared to the $219 million in the prior year period primarily due to a decrease in corporate costs, principally savings resulting from the Growth Driver 5 Actions along with other efficiencies, and a decrease in global brand costs primarily due to timing.
Current report
•Restructuring and other included restructuring costs of $45 million in thesecond quarter of 2025 and $15 million in the prior year period, in connection with the Growth Driver 5 Actions.
Current report
Interest expense, net increased to $22 million in thesecond quarter of 2025 from $19 million in the second quarter of the prior year.
Current report
Income Tax Expense
Current report
The effective income tax rate for thesecond quarter of 2025 was (101.6)% compared to (2.1)% in the second quarter of the prior year.
Current report
The effective income tax rate for thesecond quarter of 2025 was higher than the prior year period primarily due to (i) the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges recorded in the first quarter of 2025, which were non-deductible for tax purposes and factored into our annualized effective income tax rate, and resulted in a (122.9)% decrease to our effective income tax rate for the second quarter 2025 and (ii) the impact in the prior year period of a favorable change in our uncertain tax positions resulting in a benefit to our second quarter 2024 effective tax rate of 21.2% from the settlement of a multi-year audit in an international jurisdiction.
Current report
Twenty-Six Weeks Ended August 3, 2025 Compared With Twenty-Six Weeks Ended August 4, 2024
Current report
The following table summarizes our consolidated statements of operations for the twenty-six weeks ended August 3, 2025 compared to the twenty-six week period of the prior year:
Current report
NM - not meaningful
Current report
Total Revenue
Current report
Total revenue in the twenty-six weeks ended August 3, 2025 was $4.151 billion compared to $4.026 billion in the twenty-six week period of the prior year. The overall increase in revenue of $125 million, or 3%, included a 2% positive impact of foreign currency translation.
Current report
Revenue by Segment:
Current report
•EMEA – Revenue increased $79 million, or 4%, compared to the twenty-six week period of the prior year, including a positive impact of $70 million, or 4%, related to foreign currency translation. Excluding the impact of foreign currency translation, revenue grew low single-digits in the direct-to-consumer business with a slight increase in the wholesale business.
Current report
•Americas – Revenue increased $106 million, or 9%, compared to the twenty-six week period of the prior year, driven by growth in the wholesale business partially offset by a low single-digit decline in the direct-to-consumer business.
Current report
The increase in wholesale revenue included (i) the transition of previously licensed women’s product categories in house and (ii) the impact of a shift in the timing of wholesale shipments as compared to the prior year period, as shipments in the prior year were more heavily weighted to the third and fourth quarters. The impact of foreign currency translation on our Americas segment was not significant.
Current report
•Licensing –Revenue decreased $5 million, or 2%, compared to the twenty-six week period of the prior year, more than explained by the transition of certain previously licensed women’s product categories in house.
Current report
Revenue by Brand:
Current report
•Tommy Hilfiger – Revenue increased 4% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact.
Current report
Revenue by Channel:
Current report
•Direct-to-consumer – Revenue was flat compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact.
Current report
◦Owned and operated digital commerce – Revenue increased 3% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact, driven by growth in Americas and APAC partially offset by a decline in EMEA.
Current report
•Wholesale – Revenue increased 6% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact, primarily driven by the increase in Americas discussed above.
Current report
Gross Profit
Current report
SG&A Expenses
Current report
Non-service related pension and postretirement (cost) income in the twenty-six weeks ended August 3, 2025 was a cost of $(2) million as compared to income of $1 million in the twenty-six week period of the prior year. Please see Note 7, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current report
(Loss) income before interest and taxes in the twenty-six weeks ended August 3, 2025 was $(199) million, or (4.8)%, of total revenue, compared to $379 million, or 9.4% of total revenue, in the twenty-six week period of the prior year, and included changes in our segments’ income before interest and taxes and other reconciling items as follows:
Current report
•EMEA –Income before interest and taxes in the twenty-six weeks ended August 3, 2025 was $328 million, or 16.6% of total revenue, compared to $330 million, or 17.4% of total revenuein the twenty-six week period of the prior year. The 80 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue due to (i) the leveraging of expenses resulting from the increase in revenue and (ii)savings primarily resulting from the Growth Driver 5 Actions.
Current report
•Americas –Income before interest and taxes in the twenty-six weeks ended August 3, 2025 was $134 million, or 10.4% of total revenue, compared to $147 million, or 12.4% of total revenuein the twenty-six week period of the prior year. The 200 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue due in part to the leveraging of expenses resulting from the increase in revenue.
Current report
•APAC –Income before interest and taxes in the twenty-six weeks ended August 3, 2025 was $130 million, or 19.0% of total revenue, compared to $163 million, or 22.0% of total revenuein the twenty-six week period of the prior year. The 300 basis point decrease was driven by a gross margin decline and an increase in SG&A expense as a percentage of revenue driven by the deleveraging of expenses resulting from the decline in revenue.
Current report
•Licensing –Income before interest and taxes was $166 million in the twenty-six weeks ended August 3, 2025, flat compared to $166 million in the twenty-six week period of the prior year.
Current report
•Corporate and other costs were $419 million in the twenty-six weeks ended August 3, 2025, a decrease of $2 million compared to $422 million in the twenty-six week period of the prior year.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (8)
Previous report
•EMEA - Revenue increased $45 million, or 5%, compared to the prior year period, including a positive impact of $5 million, or 1%, related to foreign currency translation, driven by growth in both the wholesale and direct-to-consumer businesses.
Previous report
•Tommy Hilfiger - Revenue increased 3% compared to the prior year period driven by growth in EMEA and Americas. The impact of foreign currency translation in the first quarter of 2025 on our Tommy Hilfiger business was immaterial.
Previous report
•Direct-to-consumer - Revenue decreased 3% compared to the prior year period. The impact of foreign currency translation in the first quarter of 2025 on our direct-to-consumer revenue was immaterial.
Previous report
•Americas -Income before interest and taxes in thefirst quarter of 2025 was $61 million, or 10.0% of total revenue, compared to $67 million, or 11.7% of total revenue in the first quarter of the prior year. The 170 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue due in part to the leveraging of expenses resulting from the increase in revenue.
Previous report
•Corporate and other costs increased $7 million compared to the prior year period due to an increase in global brand costs.
Previous report
Interest expense, net decreased to $17 million in the first quarter of 2025 from $18 million in the first quarter of the prior year.
Previous report
The effective income tax rate for the first quarter of 2025 was 87.2% compared to 19.2% in the first quarter of the prior year.
Previous report
We have outstanding $500.0 million principal amount of 4 5/8% senior notes due July 10, 2025. We may redeem some or all of these notes at any time prior to June 10, 2025 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, we may redeem some or all of these notes on or after June 10, 2025 at their principal amount plus any accrued and unpaid interest.
Reworded paragraphs (62)
Previous wording
Inflation and other macroeconomic pressures, such as recently enacted tariffs on goods imported into the United States, elevated interest rates and recession fears, continue to create a complex and challenging retail environment, particularly in North
Current wording
Inflation and other macroeconomic pressures, such as recently enacted tariffs on goods imported into the United States, elevated interest rates and the risk of recession, continue to create a complex and challenging retail environment, particularly in North America. Macroeconomic factors have had and may continue to have a negative impact on consumer demand for apparel and related products globally.
Previous wording
In April 2025, the United States government announced additional tariffs on goods imported into the United States, including an incremental 10% tariff on products imported from most countries, with the potential for these incremental tariffs to increase significantly. In response, many countries have announced or are otherwise considering retaliatory tariffs on United States exports and other trade restrictions. These actions have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of the proposed additional incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies may include further sourcing optimization, negotiations with our vendors, and pricing actions.
Current wording
Beginning in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the United States, with incremental tariffs on products imported from most countries and economic unions, and the potential for further increases and revisions or terminations to existing trade agreements. In response, some countries and economic unions have announced or are otherwise considering retaliatory tariffs on United States exports and other trade restrictions. These actions have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies may include further sourcing optimization, negotiations with our vendors, internal efficiencies to drive cost savings, optimizing our discount strategies and pricing actions.
Previous wording
We currently expect the recently enacted tariffs currently in place for goods coming into the U.S. will have an estimated net negative impact on our full year 2025 gross profit, including an unmitigated impact of approximately $65 million and a partially offsetting impact from planned mitigation actions, primarily in the second half of the year. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts.
Current wording
We currently expect the recently enacted tariffs currently in place for goods coming into the United States will have an estimated net negative impact on our full year 2025 gross profit, including an unmitigated impact of approximately $70 million and a partially offsetting impact from planned mitigation actions which will primarily take effect starting in the second half of the year. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts.
Previous wording
There is significant uncertainty with respect to global trade policies and the related impact on the broader macroeconomic environment, as well as the impact of inflation and other macroeconomic factors, and foreign currency volatility. Our 2025 outlook assumes no material worsening of current conditions. Our revenue and earnings in 2025 may be subject to significant material change as a result of these and other macroeconomic factors.
Current wording
There is significant uncertainty with respect to global trade policies, including the potential for increases in tariffs, and the related impact on the broader macroeconomic environment, as well as the impact of inflation and other macroeconomic factors, and foreign currency volatility. Our 2025 outlook assumes no material worsening of current conditions. Our revenue and earnings in 2025 may be subject to significant material change as a result of these and other macroeconomic factors.
Previous wording
•We embarked on a multi-year initiative beginning in the second quarter of 2024 to simplify our operating model by centralizing certain processes, and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative is expected to result in annual cost savings of approximately $200 million to $300 million, net of continued strategic investments by 2026, with the actions to support it largely completed by the end of 2025. We recorded pre-tax costs of $13 million during the first quarter of 2025 in connection with this initiative consisting principally of severance. We expect to incur additional costs in 2025, however the additional costs cannot be quantified at this time. Please see Note 15, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current wording
•We embarked on a multi-year initiative beginning in the second quarter of 2024 to simplify our operating model by centralizing certain processes, and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative is expected to result in annual cost savings of approximately $200 million to $300 million, net of continued strategic investments by 2026, with the actions to support it largely completed by the end of 2025. We recorded pre-tax costs of $58 million during the twenty-six weeks ended August 3, 2025 in connection with this initiative consisting principally of severance. We recorded pre-tax costs of $24 million during 2024 in connection with this initiative, including (i) $33 million of costs consisting principally of severance and (ii) a $10 million gain on the sale of a warehouse and distribution center. We expect to incur additional costs in 2025, however the additional costs cannot be quantified at this time. Please see Note 15, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Previous wording
•We completed the sale of our Warner’s, Olgaand True&Co. women’s intimates businesses, including net assets with a carrying value of $140 million, to Basic Resources on November 27, 2023 (the “Heritage Brands intimates transaction”) for net proceeds of $156 million. We recorded a pre-tax gain on the sale of $15 million in the fourth quarter of 2023 in connection with the closing of the transaction and recorded an incremental gain of $10 million in the first quarter of 2024 due to the accelerated realization of the earnout provided for in the agreement with Basic Resources. Please see Note 5, Divestitures,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current wording
•We completed the sale of our Warner’s, Olgaand True&Co. women’s intimates businesses, including net assets with a carrying value of $140 million, to Basic Resources on November 27, 2023 (the “Heritage Brands intimates transaction”) for net proceeds of $156 million. We recorded a pre-tax gain on the sale of $15 million in the fourth quarter of 2023 in connection with the closing of the Heritage Brands intimates transaction and recorded an incremental gain of $10 million in the first quarter of 2024 due to the accelerated realization of the earnout provided for in the agreement with Basic Resources. Please see Note 5, Divestitures,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Previous wording
We extended in 2022 most of our licensing agreements with G-III for Calvin Klein and TOMMY HILFIGERin the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements now have staggered expirations through 2027, the first of which occurred at the end of calendar 2023. Upon expiration, we have been bringing and intend to continue to bring in house a significant portion of the licensed product categories and directly operate these businesses. The expiration of these licenses and the transition of previously licensed women’s product categories in house did not have a material impact on our revenue and net income in 2024. In 2025, the transition of previously licensed product categories in house is expected to result in a less than 1% increase to our revenue and an approximately 50 basis point decline in our gross margin.
Current wording
We extended in 2022 most of our licensing agreements with G-III Apparel Group, Ltd. for Calvin Klein and TOMMY HILFIGERin the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements now have staggered expirations through 2027, the first of which occurred at the end of calendar 2023. Upon expiration, we have been bringing and intend to continue to bring in house a significant portion of the licensed product categories and directly operate these businesses. The expiration of these licenses and the transition of previously licensed women’s product categories in house did not have a material impact on our revenue and net income in 2024. In 2025, the transition of previously licensed product categories in house is expected to result in a less than 1% increase to our revenue and an approximately 50 basis point decline in our gross margin.
Previous wording
Our Tommy Hilfiger and Calvin Klein businesses each have substantial international components that expose us to significant foreign exchange risk. Our results of operations in local foreign currencies are translated into United States dollars using an average exchange rate over the representative period. Accordingly, our results of operations are unfavorably impacted during times of a strengthening United States dollar against the foreign currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening United States dollar against those currencies. Over 70% of our 2024 revenue was subject to foreign currency translation. We currently expect that the translational impact of foreign currency on our 2025 revenue and net income as compared to 2024 will be immaterial.
Current wording
Our Tommy Hilfiger and Calvin Klein businesses each have substantial international components that expose us to significant foreign exchange risk. The results of operations of our foreign subsidiaries are translated into United States dollars using an average exchange rate over the representative period. Accordingly, our results of operations are unfavorably impacted during times of a strengthening United States dollar against the foreign currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening United States dollar against those currencies. Over 70% of our 2024 revenue was subject to foreign currency translation. We currently expect our 2025 revenue and net income to increase by approximately $200 million and $20 million, respectively, due to the impact of foreign currency translation.
Previous wording
There also is a transactional impact of foreign exchange because our foreign subsidiaries purchase inventory in a currency other than their functional currency. We use foreign currency forward contracts to hedge against a portion of the exposure related to this transactional impact. We enter into these contracts up to 15 months in advance for a portion of the projected inventory purchases and may enter into incremental contracts leading up to the time the inventory purchases occur. The impact of foreign currency fluctuations on the cost of inventory purchases covered by these contracts is then realized in our results of operations as the underlying inventory hedged by the contracts is sold. We currently expect the transactional impact of foreign currency on our 2025 net income as compared to 2024 will be immaterial.
Current wording
There also is a transactional impact of foreign exchange because our foreign subsidiaries purchase inventory in a currency other than their functional currency. We use foreign currency forward contracts to hedge against a portion of the exposure related to this transactional impact. We enter into these contracts up to 15 months in advance of payment for a portion of the projected inventory purchases and may enter into incremental contracts leading up to the time the payments occur. The impact of foreign currency fluctuations on the cost of inventory purchases covered by these contracts is then realized in our results of operations as the underlying inventory hedged by the contracts is sold. We currently expect the transactional impact of foreign currency on our 2025 net income as compared to 2024 will be immaterial.
Previous wording
We also have exposure to changes in foreign currency exchange rates related to our €1.125 billion aggregate principal amount of senior notes that are held in the United States. The strengthening of the United States dollar against the euro would require us to use a lower amount of our cash flows from operations to pay interest and make long-term debt repayments, whereas the weakening of the United States dollar against the euro would require us to use a greater amount of our cash flows from operations to pay interest and make long-term debt repayments. We designated the par value of these senior notes issued by PVH Corp., a U.S.-based entity, as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency. In addition, we entered into multiple fixed-to-fixed cross-currency swap contracts in 2023, which, in aggregate, economically convert our $500 million principal amount of 4 5/8% senior notes due 2025 from a United States dollar-denominated obligation to a euro-denominated obligation of €457.2 million. We also designated these cross-currency swap contracts as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency. As a result, the remeasurement of these foreign currency borrowings and cross-currency swaps at the end of each period is recorded in equity. Please see Note 10, “Derivative Financial Instruments,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current wording
We also have exposure to changes in foreign currency exchange rates related to our €1.125 billion aggregate principal amount of senior notes that are held in the United States. The strengthening of the United States dollar against the euro would require us to use a lower amount of our cash flows from operations to pay interest and make long-term debt repayments, whereas the weakening of the United States dollar against the euro would require us to use a greater amount of our cash flows from operations to pay interest and make long-term debt repayments. We designated the par value of these senior notes issued by PVH Corp., a U.S.-based entity, as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency.
Previous wording
Due to the above seasonal factors, our results of operations for the thirteen weeks ended May 4, 2025 are not necessarily indicative of those for a full fiscal year.
Current wording
Due to the above seasonal factors, our results of operations for the thirteen and twenty-six weeks ended August 3, 2025 are not necessarily indicative of those for a full fiscal year.
Previous wording
The following table summarizes our consolidated statements of operations for the first quarter of 2025 compared to the prior year period:
Current wording
The following table summarizes our consolidated statements of operations for the thirteen weeks ended August 3, 2025 compared to the prior year period:
Previous wording
Total revenue in the first quarter of 2025 was $1.984 billion compared to $1.952 billion in the first quarter of the prior year. The overall increase in revenue of $32 million, or 2%, included an immaterial impact of foreign currency translation.
Current wording
Total revenue in the second quarter of 2025 was $2.167 billion compared to $2.074 billion in the second quarter of the prior year. The overall increase in revenue of $93 million, or 4%, included a 3% positive impact of foreign currency translation.
Previous wording
•Americas - Revenue increased $39 million, or 7%, compared to the prior year period, including a negative impact of $5 million, or 1%, related to foreign currency translation, driven by growth in the wholesale business partially offset by a mid single-digit decline in the direct-to-consumer business. The increase in wholesale revenue included the transition of previously licensed women’s product categories in house and the impact of a shift in the timing of wholesale shipments from the second half into the first half of 2025 as compared to the prior year.
Current wording
•Americas – Revenue increased $67 million, or 11%, compared to the prior year period, driven by growth in the wholesale business, with flat revenue in the direct-to-consumer business. The increase in wholesale revenue included (i) the transition of previously licensed women’s product categories in house and (ii) the impact of a shift in the timing of wholesale shipments as compared to the prior year period, as shipments in the prior year were more heavily weighted to the third and fourth quarters. The impact of foreign currency translation in the second quarter on our Americas segment was not significant.
Previous wording
•Licensing –Revenue decreased $2 million, or 2%, compared to the prior year period due to the transition of certain previously licensed women’s product categories in house.
Current wording
•Licensing –Revenue decreased $3 million, or 3%, compared to the prior year period, more than explained by the transition of certain previously licensed women’s product categories in house.
Previous wording
◦Owned and operated digital commerce - Revenue increased 3% compared to the prior year period driven by growth in Americas.
Current wording
◦Owned and operated digital commerce – Revenue increased 3% compared to the prior year period, including a 3% positive foreign currency impact. Growth in Americas and APAC was offset by a decline in EMEA.
Previous wording
•Wholesale - Revenue increased 6% compared to the prior year period driven by the increases in Americas and EMEA discussed above. The impact of foreign currency translation in the first quarter of 2025 on our wholesale distribution revenue was immaterial.
Current wording
•Wholesale – Revenue increased 6% compared to the prior year period, including a 4% positive foreign currency impact. Excluding the impact of foreign currency translation, the increase in Americas was partially offset by the decrease in EMEA as discussed above.
Previous wording
Non-service related pension and postretirement (cost) income in the first quarter of 2025 was cost of $(1) million as compared to income of approximately $500,000 in the first quarter of the prior year. Please see Note 7, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current wording
Non-service related pension and postretirement (cost) income in the second quarter of 2025 was a cost of $(1) million as compared to income of approximately $400,000 in the second quarter of the prior year. Please see Note 7, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Previous wording
The equity in net income of unconsolidated affiliates was $10 million in the first quarter of 2025 compared to $13 million in the first quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands, and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in the United States and Canada. Our investments in the joint ventures are being accounted for under the equity method of accounting.
Current wording
The equity in net income of unconsolidated affiliates was $12 million in the second quarter of 2025 compared to $11 million in the second quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands, and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in the United States and Canada. Our investments in the joint ventures are being accounted for under the equity method of accounting.
Previous wording
(Loss) income before interest and taxes in the first quarter of 2025 was $(332) million, or (16.7)%, of total revenue, compared to $205 million, or 10.5% of total revenue, in the first quarter of the prior year, and included changes in our segments’ income before interest and taxes and other reconciling items as follows:
Current wording
Income before interest and taxes in thesecond quarter of 2025 was $133 million, or 6.1%, of total revenue, compared to $174 million, or 8.4% of total revenue, in the second quarter of the prior year, and included changes in our segments’ income before interest and taxes and other reconciling items as follows:
Previous wording
•EMEA -Income before interest and taxes in thefirst quarter of 2025 was $149 million, or 16.1% of total revenue, compared to $149 million, or 16.9% of total revenue in the first quarter of the prior year. The 80 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue due in part to the leveraging of expenses resulting from the increase in revenue.
Current wording
•EMEA –Income before interest and taxes in thesecond quarter of 2025 was $179 million, or 17.0% of total revenue, compared to $181 million, or 17.8% of total revenue in the second quarter of the prior year. The 80 basis point decrease was driven by a gross margin decline partially offset by a decrease in SG&A expense as a percentage of revenue, primarily driven by savings resulting from the Growth Driver 5 Actions.
Previous wording
•APAC -Income before interest and taxes in thefirst quarter of 2025 was $79 million, or 22.5% of total revenue, compared to $102 million, or 25.3% of total revenue in the first quarter of the prior year. The 280 basis point decrease was driven by a gross margin decline and an increase in SG&A expense as a percentage of revenue driven by the deleveraging of expenses resulting from the decline in revenue.
Current wording
•APAC –Income before interest and taxes in thesecond quarter of 2025 was $51 million, or 15.3% of total revenue, compared to $61 million, or 18.1% of total revenue in the second quarter of the prior year. The 280 basis point decrease was driven by an increase in SG&A expense as a percentage of revenue due in part to the deleveraging of expenses resulting from the decline in revenue, partially offset by an increase in gross margin.
Previous wording
•Licensing -Income before interest and taxes was relatively flat compared to the prior year period.
Current wording
•Licensing –Income before interest and taxes in thesecond quarter of 2025 was $85 million, relatively flat compared to $86 million in the prior year period.
Previous wording
The effective income tax rate for the first quarter of 2025 reflected a $(305) million income tax benefit recorded on $(350) million of pre-tax losses. The effective income tax rate for the first quarter of 2024 reflected a $36 million income tax expense recorded on $187 million of pre-tax income.
Current wording
The effective income tax rate for the second quarter of 2025 reflected a $(113) million income tax benefit recorded on $111 million of pre-tax income. The effective income tax rate for the second quarter of 2024 reflected a $(3) million income tax benefit recorded on $155 million of pre-tax income.
Previous wording
•APAC -Revenue decreased $51 million, or 13%, compared to the prior year period, including a negative impact of $5 million, or 1%, related to foreign currency translation, primarily due to an approximately 3% decline resulting from the timing of the Lunar New Year shopping period, which was primarily in the fourth quarter of 2024, and a challenging consumer environment in the region, particularly in China.
Current wording
•APAC –Revenue decreased $55 million, or 7%, compared to the twenty-six week period of the prior year, including an approximately 2% decline resulting from the timing of the Lunar New Year shopping period, which was primarily in the fourth quarter of 2024. The remaining decrease was primarily due to a challenging consumer environment in the region, particularly in China. The impact of foreign currency translation in the twenty-six week period on our APAC segment was not significant.
Previous wording
•Calvin Klein - Revenue was flat compared to the prior year period, including a 1% negative foreign currency impact.
Current wording
•Calvin Klein – Revenue increased 3% compared to the twenty-six week period of the prior year, including a 1% positive foreign currency impact.
Previous wording
◦Owned and operated retail stores - Revenue decreased 5% compared to the prior year period, as growth in EMEA was more than offset by declines in Americas and APAC primarily due to the challenging consumer environment in those regions.
Current wording
◦Owned and operated retail stores – Revenue was flat compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact. Growth in EMEA was more than offset by declines in Americas and APAC, primarily due to the challenging consumer environment in those regions.
Previous wording
We currently expect revenue for the full year 2025 will be flat to increase slightly compared to 2024. The impact of foreign currency translation on our revenue for full year 2025 is expected to be immaterial.
Current wording
We currently expect revenue for the full year 2025 will increase slightly to low single-digits compared to 2024, inclusive of a positive impact related to foreign currency translation. Excluding the impact of foreign currency translation, we currently expect revenue for the full year 2025 to be flat to increase slightly.
Previous wording
Gross profit in the first quarter of 2025 was $1.162 billion, or 58.6% of total revenue, compared to $1.199 billion, or 61.4% of total revenue, in the first quarter of the prior year. Approximately 50 basis points of the decline was due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins. The remaining 230 basis point decrease was driven by (i) an unfavorable shift in channel mix driven by a change in mix of shipments within the wholesale channel as well as an overall change in the revenue mix between our wholesale channel and our direct-to-consumer channel, as our wholesale channel was a larger proportion of revenue in the first quarter of 2025 than in 2024 and carries lower gross margins, (ii) an increase in promotional selling as compared to the prior year period, and (iii), higher freight costs and incremental discounts provided to customers in the first quarter of 2025 to address the impact of Calvin Klein product delivery delays.
Current wording
Gross profit in the twenty-six weeks ended August 3, 2025 was $2.413 billion, or 58.1% of total revenue, compared to $2.445 billion, or 60.7% of total revenue, in the twenty-six week period of the prior year. Approximately 50 basis points of the decline was due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins, and approximately 10 basis points of the decline was due to the initial early negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States. The remaining 200 basis point decrease was driven by (i) an increase in promotional selling as compared to the prior year period, (ii) a shift in channel mix driven by a change in mix of shipments within the wholesale channel as well as an overall change in the revenue mix between our wholesale channel and our direct-to-consumer channel, as our wholesale channel was a larger proportion of revenue in the twenty-six week period of 2025 than in 2024 and carries lower gross margins, and (iii) higher freight costs and incremental discounts provided to customers in the first half of 2025 to address the impact of Calvin Klein product delivery delays.
Previous wording
We currently expect that gross margin for the full year 2025 will decrease by approximately 250 basis points compared to 2024, including the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business. The remaining approximately 200 basis point decrease is primarily as a result of (i) an estimated net negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States, including an unmitigated impact of approximately 80 basis points and a partially offsetting impact from planned mitigation actions, (ii) an increase in promotional selling as compared to the prior year, and (iii) the impact of a change in the revenue mix between our segments as compared to 2024, as our Americas segment revenue is expected to be a larger proportion of total revenue in 2025 than in 2024 and carries lower gross margins.
Current wording
We currently expect that gross margin for the full year 2025 will decrease by approximately 250 basis points compared to 2024, including (i) the approximately 80 basis point unmitigated negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States, with a more significant impact expected in the fourth quarter of 2025 due to the timing of the recently enacted tariffs and the sale of inventory and (ii) the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business. The remaining approximately 120 basis point decrease is primarily as a result of (i) an increase in promotional selling as compared to the prior year and (ii) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays, partially offset by planned mitigation actions to address the impact of tariffs.
Previous wording
SG&A expenses in the first quarter of 2025 were $1.024 billion, or 51.6% of total revenue, compared to $1.017 billion, or 52.1% of total revenue, in the first quarter of the prior year. The 50 basis point decrease was primarily driven by (i) the favorable impact of the Growth Driver 5 Actions, (ii) the impact of a change in the revenue mix between our wholesale distribution channel and our direct-to-consumer distribution channel, as our wholesale distribution channel was a larger proportion of revenue in the first quarter of 2025 than in 2024 and carries lower SG&A expenses as a percentage of total revenue, partially offset by (iii) restructuring costs incurred in the first quarter of 2025 in connection with the Growth Driver 5 Actions, and (iv) an unfavorable transactional impact of foreign exchange in SG&A expenses.
Current wording
SG&A expenses in thetwenty-six weeks ended August 3, 2025 were $2.153 billion, or 51.9% of total revenue, compared to $2.101 billion, or 52.2% of total revenue, in the twenty-six week period of the prior year. The 30 basis point decrease was primarily driven by (i) cost savings resulting from the Growth Driver 5 Actions and (ii) the impact of a change in the revenue mix between our wholesale distribution channel and our direct-to-consumer distribution channel, as our wholesale distribution channel was a larger proportion of revenue in the twenty-six week period of 2025 than in 2024 and carries lower SG&A expenses as a percentage of total revenue, partially offset by (iii) a net increase in restructuring costs incurred in connection with the Growth Driver 5 Actions, with $58 million incurred in the twenty-six week period of 2025 and $15 million incurred in the twenty-six week period of the prior year.
Previous wording
We currently expect that SG&A expenses as a percentage of revenue in 2025 will decrease approximately 200 basis points compared to 2024. Our expectation for 2025 includes decreases primarily as a result of (i) the favorable impact of the Growth Driver 5 Actions and (ii) the non-recurrence of costs incurred in connection with the Mr. Hilfiger amendment. Our expectation for full year 2025 does not include restructuring costs incurred in the thirteen weeks ended May 4, 2025 or expected to be incurred during the remainder of 2025 in connection with Growth Driver 5 Actions, as the full year impact of these costs cannot be quantified at this time.
Current wording
We currently expect that SG&A expenses as a percentage of revenue in 2025 will decrease approximately 200 basis points compared to 2024. Our expectation for 2025 includes decreases primarily as a result of (i) the favorable impact of the Growth Driver 5 Actions, including cost savings and the non-recurrence of restructuring costs incurred in the twenty-six weeks ended August 3, 2024 and (ii) the non-recurrence of costs incurred in connection with the Mr. Hilfiger amendment. The 200 basis point decrease for full year 2025 does not include the impact of the $58 million of restructuring costs incurred in the twenty-six weeks ended August 3, 2025, or any further costs expected to be incurred during the remainder of 2025 in connection with Growth Driver 5 Actions, as the full year impact of these costs cannot be quantified at this time.
Previous wording
•Restructuring and other included $493 million of expenses in the first quarter of 2025, including the $480 million noncash goodwill and other intangible asset impairment charges and the $13 million of restructuring costs in connection with the Growth Driver 5 Actions, compared to a $10 million gain in the first quarter of the prior year related to the Heritage Brands intimates transaction.
Current wording
•Restructuring and other included $538 million of expenses in the twenty-six weeks ended August 3, 2025, including the $480 million noncash goodwill and other intangible asset impairment charges and the $58 million of restructuring costs in connection with the Growth Driver 5 Actions. Restructuring and other included $5 million of net expenses in the prior year period including $15M of restructuring costs in connection with the Growth Driver 5 Actions and the $10 million gain related to the Heritage Brands intimates transaction.
Previous wording
Interest expense, net for the full year 2025 is currently expected to increase to approximately $85 million compared to $67 million in 2024, primarily due to the impact of funding the accelerated share repurchase (“ASR”) agreements we entered into in April 2025 to repurchase $500 million shares of our common stock. Please see the section entitled “Acquisition of Treasury Shares” within “Liquidity and Capital Resources” below for further discussion.
Current wording
Interest expense, net for the full year 2025 is currently expected to increase to approximately $80 million compared to $67 million in 2024, primarily due to the impact of funding the accelerated share repurchase (“ASR”) agreements we entered into in April 2025 to repurchase $500 million shares of our common stock. Please see the section entitled “Acquisition of Treasury Shares” within “Liquidity and Capital Resources” below for further discussion.
Previous wording
Our effective income tax rate for the first quarter of 2025 was higher than the prior year period primarily due to the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges, which were non-deductible for tax purposes and resulted in a 70.5% increase to our effective income tax rate. The pre-tax goodwill and other intangible asset impairment charges were factored into our annualized effective income tax rate and will have a continued impact on our quarterly effective tax rates for the remainder of 2025.
Current wording
Our effective income tax rate for the twenty-six weeks ended August 3, 2025 was higher than the prior year period primarily due to (i) the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges that were recorded during the first quarter of 2025, which were non-deductible for tax purposes and factored into our annualized effective income tax rate, and resulted in a 156.4% increase to our effective income tax rate, and (ii) the impact in the prior year period of a favorable change in our uncertain tax positions resulting in a benefit to our 2024 effective tax rate of 9.6% from the settlement of a multi-year audit in an international jurisdiction. Since the pre-tax goodwill and intangible asset impairment charges have been factored into our annualized effective income tax rate, they will have a continued impact on our quarterly effective tax rates for the remainder of 2025.
Previous wording
The goodwill and other intangible asset impairment charges in the first quarter of 2025 will also result in a significant increase to our full year 2025 effective income tax rate. Absent the impact of these impairment charges, we currently expect our effective income tax rate in 2025 will be approximately 22%.
Current wording
The goodwill and other intangible asset impairment charges recorded in the first quarter of 2025 will also result in a significant increase to our full year 2025 effective income tax rate. Absent the impact of these impairment charges, we currently expect our effective income tax rate for the full year 2025 will be approximately 22%.
Previous wording
Cash and cash equivalents at May 4, 2025 was $191 million, a decrease of $557 million from $748 million at February 2, 2025. The change in cash and cash equivalents included the impact of $561 million paid in connection with ASR agreements and open market purchases to repurchase common stock under the stock repurchase program (please see section entitled “Acquisition of Treasury Shares” below for further discussion). We ended the first quarter of 2025 with approximately $2 billion of borrowing capacity available under our various debt facilities. The seasonality of our business results in significant fluctuations in our cash balance between fiscal year end and subsequent interim periods due, in part, to the timing of inventory purchases and peak sales periods.
Current wording
Cash and cash equivalents at August 3, 2025 was $249 million, a decrease of $499 million from $748 million at February 2, 2025. The change in cash and cash equivalents included the impact of (i) $561 million paid in connection with ASR agreements and open market purchases to repurchase common stock under our stock repurchase program (please see section entitled “Acquisition of Treasury Shares” below for further discussion), (ii) the redemption of $500 million principal amount of 4 5/8% senior notes due 2025 and (iii) $494 million of net proceeds from the issuance of $500 million principal amount of 5 1/2% senior notes due 2030. We ended the second quarter of 2025 with approximately $1.7 billion of borrowing capacity available under our various debt facilities. The seasonality of our business results in significant fluctuations in our cash balance between fiscal year end and subsequent interim periods due, in part, to the timing of inventory purchases and peak sales periods.
Previous wording
Cash flow for the full year 2025 will be impacted by various factors, including, as discussed further below in this “Liquidity and Capital Resources” section, (i) common stock repurchases made under our stock repurchase program of $561 million during the first quarter of 2025, (ii) projected capital expenditures of approximately $200 million and (iii) mandatory long-term debt repayments on our term loan under our 2022 senior unsecured credit facilities of approximately $12 million. Additionally, we are exploring alternatives, including refinancing, to fund the repayment of our $500 million senior unsecured notes due in 2025.
Current wording
In addition to the items impacting our cash flow for 2025 discussed above, cash flow for the full year 2025 will also be impacted by various other factors, including, as discussed further below in this “Liquidity and Capital Resources” section, (i) projected capital expenditures of approximately $200 million and (ii) mandatory long-term debt repayments on our term loan under our 2022 senior unsecured credit facilities of approximately $13 million.
Previous wording
As of May 4, 2025, $149 million of cash and cash equivalents was held by international subsidiaries. Our intent is to reinvest indefinitely substantially all of our historical earnings in foreign subsidiaries outside of the United States in jurisdictions which we would expect to incur material tax costs upon the distribution of such amounts. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.
Current wording
As of August 3, 2025, $198 million of cash and cash equivalents was held by international subsidiaries. Our intent is to reinvest indefinitely substantially all of our historical earnings in foreign subsidiaries outside of the United States in jurisdictions which we would expect to incur material tax costs upon the distribution of such amounts. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.
Previous wording
Cash used by operating activities was $71 million in the first quarter of 2025, relatively flat compared to $67 million in the first quarter of 2024, as the change in inventory was offset by the related changes in payables. The increase in inventories in the current year period was primarily due to (a) an investment in core inventory and early receipts of summer season inventory to improve availability and (b) an increase in inventory to support the projected sales growth in the second quarter of 2025.
Current wording
Cash provided by operating activities was $142 million in the twenty-six weeks ended August 3, 2025 compared to $226 million in the twenty-six weeks ended August 4, 2024. The decrease in cash provided by operating activities as compared to the prior year period was primarily driven by a decrease in net income as adjusted for noncash charges and the change in inventory. The increase in inventories in the current year period was primarily due to (a) a 1% impact of increased tariffs, (b) an investment in core product inventory to improve availability and (c) an increase in inventory to support the projected sales growth in the third quarter of 2025.
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Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
In addition, we entered into multiple fixed-to-fixed cross-currency swap contracts in 2023, which, in aggregate, economically converted our $500 million principal amount of 4 5/8% senior notes due July 2025 from a United States dollar-denominated obligation to a euro-denominated obligation of €457.2 million. The cross currency swap contracts expired in July 2025, at which time we entered into new fixed-to-fixed cross-currency swap contracts. We also designated these cross-currency swap contracts as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency. As a result, the remeasurement of these foreign currency borrowings and cross-currency swaps at the end of each period is recorded in equity. Please see Note 10, “Derivative Financial Instruments,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.
Current report — wording carried from elsewhere
◦Owned and operated retail stores – Revenue increased 4% compared to the prior year period, including a 3% positive foreign currency impact. Excluding the impact of foreign currency translation, growth in EMEA was offset by declines in Americas and APAC primarily due to the challenging consumer environment in those regions.
Current report — wording carried from elsewhere
Gross profit in the second quarter of 2025 was $1.251 billion, or 57.7% of total revenue, compared to $1.246 billion, or 60.1% of total revenue, in the second quarter of the prior year. Approximately 50 basis points of the decline was due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins, and approximately 20 basis points of the decline was due to the initial early negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States. The remaining 170 basis point decrease was driven by (i) an increase in promotional selling as compared to the prior year period, (ii) a change in mix of shipments within the wholesale channel, and (iii) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays.
Current report — wording carried from elsewhere
Non-Service Related Pension and Postretirement (Cost) Income
Current report — wording carried from elsewhere
Equity in Net Income of Unconsolidated Affiliates
Current report — wording carried from elsewhere
The equity in net income of unconsolidated affiliates was $23 million in the twenty-six weeks ended August 3, 2025 compared to $24 million in the twenty-six week period of the prior year. These amounts relate to our share of income (loss) from our unconsolidated affiliates as described in the thirteen weeks discussion above. Our investments in the joint ventures are being accounted for under the equity method of accounting.
Current report — wording carried from elsewhere
The effective income tax rate for the for the twenty-six weeks ended August 3, 2025 reflected a $(418) million income tax benefit recorded on $(238) million of pre-tax losses. The effective income tax rate for the twenty-six weeks ended August 4, 2024 reflected a $33 million income tax expense recorded on $342 million of pre-tax income.
Current report — wording carried from elsewhere
We issued on June 13, 2025, $500 million principal amount of 5 1/2% senior notes due June 13, 2030. We incurred $6 million of fees in connection with the issuance of the notes, which are being amortized over the term of the notes.
Current report — wording carried from elsewhere
Weutilized the net proceeds of the offering, together with other available funds, to repay the $500 million principal amount of 4 5/8% senior notes due July 10, 2025, as discussed above.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
America. Macroeconomic factors have had and may continue to have a negative impact on consumer demand for apparel and related products globally.