PVH Corp. Reports 4% Revenue Growth in Q2 2025, Net Income Rises 42%

PVH Corp. reported its financial results for the second quarter and first half of fiscal 2025, revealing a revenue increase of 4% to $2.167 billion for the quarter ended August 3, 2025, compared to $2.074 billion in the same period last year. For the first half of the fiscal year, revenue rose 3% to $4.151 billion from $4.026 billion. The company attributed this growth to a positive impact from foreign currency translation, which contributed approximately 3% to the quarterly revenue increase. Net income for the second quarter was $224.2 million, a 42% increase from $158 million in the prior year, while net income for the first half decreased to $179.4 million from $309.4 million, largely due to significant impairment charges.

The company experienced notable changes in its operational structure, including a shift to region-focused reportable segments effective February 3, 2025. The new segments are Europe, the Middle East and Africa (EMEA), Americas, Asia-Pacific (APAC), and Licensing. This reorganization aims to align with the company's strategic initiatives under the PVH+ Plan, which seeks to enhance the performance of its key brands, Calvin Klein and Tommy Hilfiger. Additionally, PVH Corp. recorded a noncash goodwill impairment charge of $426 million and other intangible asset impairments totaling $54 million during the first quarter, primarily due to increased discount rates.

Operationally, the company reported a decline in gross profit margin to 57.7% for the second quarter, down from 60.1% in the prior year, attributed to a mix shift towards lower-margin wholesale distribution and increased promotional activities. Selling, general, and administrative expenses rose to $1.129 billion, or 52.1% of revenue, compared to 52.2% in the previous year. The company also noted a decrease in equity income from unconsolidated affiliates, which fell to $12.2 million from $10.9 million year-over-year.

Looking ahead, PVH Corp. anticipates a slight revenue increase for the full year 2025, projecting low single-digit growth compared to 2024, with a positive impact from foreign currency translation. However, the company expects gross margins to decline by approximately 250 basis points due to the transition of previously licensed product categories into its directly operated wholesale business and the impact of recently enacted tariffs. The company remains focused on mitigating these challenges through operational efficiencies and strategic investments, aiming for annual cost savings of $200 million to $300 million by 2026 as part of its ongoing restructuring efforts.