Group 1 - The "pain culture" consumption trend is gaining momentum, with brands like Converse, LEE, Dickies, and Li Ning increasing their focus on pain bags to attract young consumers [1][2] - Pain bags differ from regular bags primarily due to a transparent compartment designed for displaying merchandise, rooted in Japanese "pain bag culture" where fans showcase their favorite badges [1][2] - The market for pain bags is becoming concentrated, with over ten sports brands, including Adidas and Anta, participating, and prices generally range from 100 to 200 yuan, with some single items selling over a thousand units [1][2] Group 2 - New products are being launched in the pain bag market, such as Converse's white backpack with a large transparent compartment and Skechers' concert-specific pain bag [2] - The influence of "pain culture" is extending beyond bags, with brands exploring DIY options in footwear and clothing, enhancing the emotional connection with consumers [2] - Industry experts note that the Z generation seeks emotional value over mere functionality, suggesting brands should adopt interactive systems and customization options to meet these demands [2]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20--%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis of PVH Corp.'s financial condition and results of operations [Item 1 - Financial Statements](index=5&type=section&id=Item%201%20-%20Financial%20Statements) This section presents the unaudited consolidated financial statements of PVH Corp., including the statements of operations, comprehensive income, balance sheets, cash flows, and changes in stockholders' equity, along with detailed notes explaining accounting policies, significant transactions, and financial performance for the reported periods [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net income over specific reporting periods, highlighting operational profitability and earnings per share Thirteen Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | Revenue | $2,167.2 | $2,074.3 | $92.9 | 4.5% | | Gross profit | $1,250.8 | $1,245.9 | $4.9 | 0.4% | | Selling, general and administrative expenses | $1,128.9 | $1,083.3 | $45.6 | 4.2% | | Income (loss) before interest and taxes | $133.2 | $173.9 | $(40.7) | -23.4% | | Net income | $224.2 | $158.0 | $66.2 | 41.9% | | Basic net income per common share | $4.66 | $2.83 | $1.83 | 64.7% | | Diluted net income per common share | $4.63 | $2.80 | $1.83 | 65.4% | Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | Revenue | $4,150.8 | $4,026.2 | $124.6 | 3.1% | | Gross profit | $2,412.5 | $2,444.6 | $(32.1) | -1.3% | | Selling, general and administrative expenses | $2,152.8 | $2,100.6 | $52.2 | 2.5% | | Goodwill and other intangible asset impairments | $479.5 | $— | $479.5 | NM | | Income (loss) before interest and taxes | $(199.0) | $379.0 | $(578.0) | NM | | Net income | $179.4 | $309.4 | $(130.0) | -42.0% | | Basic net income per common share | $3.62 | $5.46 | $(1.84) | -33.7% | | Diluted net income per common share | $3.59 | $5.39 | $(1.80) | -33.4% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income alongside other comprehensive income items, such as foreign currency translation adjustments, to arrive at total comprehensive income Thirteen Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net income | $224.2 | $158.0 | $66.2 | | Foreign currency translation adjustments | $64.5 | $12.7 | $51.8 | | Total other comprehensive income (loss) | $13.7 | $(10.6) | $24.3 | | Comprehensive income | $237.9 | $147.4 | $90.5 | Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net income | $179.4 | $309.4 | $(130.0) | | Foreign currency translation adjustments | $298.1 | $(2.1) | $300.2 | | Total other comprehensive income (loss) | $100.1 | $(21.2) | $121.3 | | Comprehensive income | $279.5 | $288.2 | $(8.7) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time, reflecting its financial position Balance Sheet Highlights (August 3, 2025 vs February 2, 2025 vs August 4, 2024) | Metric | Aug 3, 2025 (Millions) | Feb 2, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Cash and cash equivalents | $248.8 | $748.0 | $610.0 | | Total Current Assets | $3,299.3 | $3,487.6 | $3,414.4 | | Total Assets | $11,627.6 | $11,033.2 | $11,237.7 | | Total Current Liabilities | $2,410.3 | $2,741.8 | $2,760.1 | | Long-Term Debt | $2,256.0 | $1,579.9 | $1,668.2 | | Total Stockholders' Equity | $4,866.6 | $5,140.5 | $5,191.8 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows into operating, investing, and financing activities, illustrating changes in the company's cash position Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net cash provided by operating activities | $141.7 | $225.7 | $(84.0) | | Net cash used by investing activities | $(59.0) | $(72.0) | $13.0 | | Net cash used by financing activities | $(593.5) | $(250.8) | $(342.7) | | Decrease in cash and cash equivalents | $(499.2) | $(97.6) | $(401.6) | | Cash and cash equivalents at end of period | $248.8 | $610.0 | $(361.2) | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement tracks changes in each component of stockholders' equity, including common stock, retained earnings, and treasury stock, over the reporting period Stockholders' Equity Changes (Twenty-Six Weeks Ended August 3, 2025) | Component | Feb 2, 2025 (Millions) | Aug 3, 2025 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Common Stock ($1 par Value) | $89.1 | $89.6 | $0.5 | | Additional Paid-In Capital | $3,374.1 | $3,251.0 | $(123.1) | | Retained Earnings | $5,997.2 | $6,172.7 | $175.5 | | Accumulated Other Comprehensive Loss | $(856.8) | $(756.7) | $100.1 | | Treasury Stock | $(3,463.1) | $(3,890.0) | $(426.9) | | Total Stockholders' Equity | $5,140.5 | $4,866.6 | $(273.9) | Stockholders' Equity Changes (Twenty-Six Weeks Ended August 4, 2024) | Component | Feb 4, 2024 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Common Stock ($1 par Value) | $88.6 | $89.0 | $0.4 | | Additional Paid-In Capital | $3,313.3 | $3,347.1 | $33.8 | | Retained Earnings | $5,407.3 | $5,712.4 | $305.1 | | Accumulated Other Comprehensive Loss | $(753.6) | $(774.8) | $(21.2) | | Treasury Stock | $(2,936.7) | $(3,181.9) | $(245.2) | | Total Stockholders' Equity | $5,118.9 | $5,191.8 | $72.9 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the amounts presented in the consolidated financial statements [Note 1. GENERAL](index=12&type=section&id=Note%201.%20GENERAL) This note outlines the company's business operations, recent segment changes, and the impact of the macroeconomic environment on its performance - PVH Corp. changed its reportable segments to be region-focused (EMEA, Americas, APAC, and Licensing) effective **February 3, 2025**, to align with changes in its business and organizational structure[25](index=25&type=chunk) - The macroeconomic environment, including inflation, tariffs, elevated interest rates, and recession risks, continues to create a complex and challenging retail environment, particularly in North America, negatively impacting consumer demand[28](index=28&type=chunk) - Recently enacted tariffs on goods imported into the United States are expected to have a negative impact on the company's full-year **2025** results of operations, primarily in the second half of the year[29](index=29&type=chunk) [Note 2. REVENUE](index=13&type=section&id=Note%202.%20REVENUE) This note details the company's revenue recognition policies, sources of revenue, and information regarding deferred revenue and contractual minimum fees - Revenue is primarily generated from sales of finished products through wholesale and retail operations, and royalty and advertising revenue from licensing trademarks to third parties[30](index=30&type=chunk) - Contractual minimum fees on unsatisfied license agreements totaled **$693.2 million** as of **August 3, 2025**, with **$123.2 million** expected to be recognized as revenue during the remainder of **2025**, **$203.9 million** in **2026**, and **$366.1 million** thereafter[31](index=31&type=chunk) Deferred Revenue Balance | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | | Deferred revenue balance at beginning of period | $55.3 | $55.5 | | Net additions to deferred revenue during the period | $41.6 | $52.3 | | Reductions in deferred revenue for revenue recognized during the period | $(46.1) | $(46.8) | | Deferred revenue balance at end of period | $50.8 | $61.0 | [Note 3. INVENTORIES](index=13&type=section&id=Note%203.%20INVENTORIES) This note describes the company's inventory valuation methods and the types of inventory held, primarily finished goods - Inventories, principally finished goods, are stated at the lower of cost or net realizable value, with cost determined using the first-in, first-out (FIFO) method for North America wholesale and certain Asia inventories, and the weighted average cost method for all other inventories[34](index=34&type=chunk) [Note 4. ASSETS HELD FOR SALE](index=14&type=section&id=Note%204.%20ASSETS%20HELD%20FOR%20SALE) This note discusses assets classified as held for sale, including a warehouse and distribution center, and the company's plans for their disposition - The company committed to closing its owned warehouse and distribution center in Jonesville, NC, classifying the building and related assets as held for sale with a carrying value of **$16.7 million** as of **August 3, 2025**[35](index=35&type=chunk) - The sale is intended to occur towards the end of **2025** or during the first quarter of **2026**, and depreciation ceased in the first quarter of **2025**[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 5. DIVESTITURES](index=14&type=section&id=Note%205.%20DIVESTITURES) This note provides details on the sale of certain women's intimates businesses, including net proceeds and recognized gains from the transactions - The company completed the sale of its Warner's, Olga, and True&Co. women's intimates businesses on **November 27, 2023**, for net proceeds of **$155.6 million**[37](index=37&type=chunk) - A gain of **$15.3 million** was recorded in **Q4 2023**, and an incremental gain of **$10.0 million** was recorded in **Q1 2024** due to the accelerated realization of an earnout from the agreement[38](index=38&type=chunk) [Note 6. GOODWILL AND OTHER INTANGIBLE ASSETS](index=14&type=section&id=Note%206.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) This note explains the noncash impairment charges recorded for goodwill and reacquired license rights, primarily due to increased discount rates - The company recorded **$426.0 million** of noncash goodwill impairment charges during the first quarter of **2025**, fully impairing the goodwill balances in the Americas (**$7.6 million**) and APAC (**$418.4 million**) segments[42](index=42&type=chunk) - An additional **$53.5 million** of noncash impairment charges were recorded for reacquired perpetual license rights in Australia, writing down the asset from **$190.8 million** to **$137.3 million**[46](index=46&type=chunk) - The impairments were primarily due to a significant increase in discount rates, which incorporated elevated risk premiums due to macroeconomic and geopolitical factors[42](index=42&type=chunk)[46](index=46&type=chunk) [Note 7. RETIREMENT AND BENEFIT PLANS](index=16&type=section&id=Note%207.%20RETIREMENT%20AND%20BENEFIT%20PLANS) This note describes the company's defined benefit pension plans and supplemental plans, including recent changes and recognized net benefit costs - The company operates two noncontributory qualified defined benefit pension plans and three noncontributory unfunded non-qualified supplemental defined benefit pension plans[49](index=49&type=chunk)[50](index=50&type=chunk) - The Board of Directors approved changes to freeze the pensionable compensation and credited service amounts for most participants, effective **June 30, 2024**[51](index=51&type=chunk) Net Benefit Cost Recognized (Twenty-Six Weeks Ended) | Plan | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :---------------- | :--------------------- | :--------------------- | | Pension Plans | $2.9 | $4.8 | | SERP Plans | $1.3 | $1.7 | [Note 8. DEBT](index=17&type=section&id=Note%208.%20DEBT) This note details the company's various debt instruments, including senior notes and credit facilities, and changes in long-term debt balances - The company had no revolving borrowings outstanding under its senior unsecured credit facilities or short-term lines of credit as of **August 3, 2025**[55](index=55&type=chunk)[56](index=56&type=chunk) - A **$250.0 million** unsecured delayed draw term loan facility (April 4 facility) was entered into, maturing **April 3, 2026**, with the entire amount remaining available for borrowing as of **August 3, 2025**[58](index=58&type=chunk)[60](index=60&type=chunk) - Issued **$500.0 million** principal amount of **5 1/2%** senior notes due **June 13, 2030**, using the net proceeds to repay the **$500.0 million** principal amount of **4 5/8%** senior notes due **July 10, 2025**[77](index=77&type=chunk) Long-Term Debt Carrying Amounts (Millions) | Debt Type | Aug 3, 2025 | Feb 2, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | | Senior unsecured Term Loan A facility due 2027 | $477.9 | $432.7 | $461.2 | | 4 5/8% senior unsecured notes due 2025 | $— | $499.4 | $498.8 | | 3 1/8% senior unsecured euro notes due 2027 | $692.8 | $619.1 | $651.5 | | 4 1/8% senior unsecured euro notes due 2029 | $603.9 | $539.5 | $567.5 | | 5 1/2% senior unsecured notes due 2030 | $494.2 | $— | $— | | **Total** | **$2,268.8** | **$2,090.7** | **$2,179.0** | | Less: Current portion of long-term debt | $12.8 | $510.8 | $510.8 | | **Long-term debt** | **$2,256.0** | **$1,579.9** | **$1,668.2** | [Note 9. INCOME TAXES](index=20&type=section&id=Note%209.%20INCOME%20TAXES) This note explains the effective income tax rates and the impact of non-deductible impairment charges on the company's tax provision - The effective income tax rate for the thirteen weeks ended **August 3, 2025**, was **(101.6)%**, reflecting a **$(113.0) million** income tax benefit on **$111.2 million** of pre-tax income, compared to **(2.1)%** in the prior year[81](index=81&type=chunk) - The effective income tax rate for the twenty-six weeks ended **August 3, 2025**, was **175.3%**, reflecting a **$(417.8) million** income tax benefit on **$(238.4) million** of pre-tax losses, compared to **9.6%** in the prior year[82](index=82&type=chunk) - The higher effective tax rates in **2025** were primarily due to the impact of **$479.5 million** pre-tax noncash goodwill and other intangible asset impairment charges recorded in **Q1 2025**, which were non-deductible for tax purposes[83](index=83&type=chunk) [Note 10. DERIVATIVE FINANCIAL INSTRUMENTS](index=20&type=section&id=Note%2010.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note describes the company's use of foreign currency forward contracts and cross-currency swaps to manage market risks - The company uses foreign currency forward contracts to hedge against foreign currency exchange rate exposure related to inventory purchases (cash flow hedges) and non-derivative/derivative instruments (foreign currency borrowings, cross-currency swap contracts) as net investment hedges[84](index=84&type=chunk)[86](index=86&type=chunk) - In **July 2025**, the company completed a transaction to effectively blend and extend cross-currency swaps maturing in **July 2025** with new fixed-to-fixed cross-currency swap contracts maturing in **July 2027** (**$300 million** notional) and **July 2028** (**$200 million** notional)[90](index=90&type=chunk) Total (Loss) Gain Recognized in Other Comprehensive Income from Hedges | Period | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | | Thirteen Weeks Ended | $(51.4) | $(23.1) | | Twenty-Six Weeks Ended | $(246.7) | $(10.3) | [Note 11. FAIR VALUE MEASUREMENTS](index=24&type=section&id=Note%2011.%20FAIR%20VALUE%20MEASUREMENTS) This note presents the fair value of financial assets and liabilities, including derivative instruments, and non-recurring fair value remeasurements of non-financial assets Fair Value of Financial Assets and Liabilities (August 3, 2025) | Category | Assets (Millions) | Liabilities (Millions) | | :-------------------------------- | :---------------- | :------------------- | | Foreign currency forward contracts | $3.2 | $44.6 | | Cross-currency swap contracts (net investment hedges) | $7.5 | $31.3 | | Rabbi trust assets | $19.1 | N/A | | **Total** | **$29.8** | **$75.9** | - Non-financial assets, specifically other intangible assets, were remeasured at fair value on a non-recurring basis during the twenty-six weeks ended **August 3, 2025**, resulting in total impairments of **$53.5 million** for the Australia license rights[107](index=107&type=chunk) [Note 12. STOCK-BASED COMPENSATION](index=26&type=section&id=Note%2012.%20STOCK-BASED%20COMPENSATION) This note details the expense and tax benefits related to stock-based compensation, along with activity for restricted stock units and performance share units - Net income for the twenty-six weeks ended **August 3, 2025**, included **$26.0 million** of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of **$3.2 million**[111](index=111&type=chunk) RSU Activity (Twenty-Six Weeks Ended August 3, 2025) | Metric | RSUs (Thousands) | Weighted Average Grant Date Fair Value Per RSU | | :-------------------------------- | :--------------- | :--------------------------------------------- | | Non-vested at February 2, 2025 | 1,069 | $93.45 | | Granted | 826 | $69.05 | | Vested | 403 | $91.13 | | Forfeited | 108 | $87.17 | | Non-vested at August 3, 2025 | 1,384 | $80.06 | PSU Activity (Twenty-Six Weeks Ended August 3, 2025) | Metric | PSUs (Thousands) | Weighted Average Grant Date Fair Value Per PSU | | :-------------------------------- | :--------------- | :--------------------------------------------- | | Non-vested at February 2, 2025 | 266 | $110.64 | | Granted | 192 | $85.12 | | Vested | 42 | $102.88 | | Forfeited | 14 | $117.79 | | Non-vested at August 3, 2025 | 411 | $99.13 | [Note 13. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=28&type=section&id=Note%2013.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) This note explains changes in the accumulated other comprehensive loss, primarily driven by foreign currency translation adjustments and cash flow hedges - The Accumulated Other Comprehensive Loss (AOCL) balance decreased from **$(856.8) million** at **February 2, 2025**, to **$(756.7) million** at **August 3, 2025**, representing a **$100.1 million** increase (reduction in loss)[123](index=123&type=chunk) - Foreign currency translation adjustments contributed **$156.1 million** to other comprehensive income (loss) for the twenty-six weeks ended **August 3, 2025**, principally driven by a weakening of the United States dollar against the euro[123](index=123&type=chunk) - Net unrealized and realized loss related to effective cash flow hedges was **$(56.0) million** for the twenty-six weeks ended **August 3, 2025**[123](index=123&type=chunk) [Note 14. STOCKHOLDERS' EQUITY](index=29&type=section&id=Note%2014.%20STOCKHOLDERS'%20EQUITY) This note outlines the company's stock repurchase programs, including accelerated share repurchases and open market transactions - The Board of Directors authorized a **$5.0 billion** stock repurchase program through **July 30, 2028**, with **$1.212 billion** of authorization remaining as of **August 3, 2025**[124](index=124&type=chunk)[126](index=126&type=chunk) - On **April 1, 2025**, the company entered into accelerated share repurchase (ASR) agreements to repurchase **$500.0 million** of common stock, receiving initial deliveries of approximately **4.6 million** shares[125](index=125&type=chunk) - During the twenty-six weeks ended **August 3, 2025**, the company purchased an additional **0.8 million** shares for **$60.8 million** in open market transactions[126](index=126&type=chunk) [Note 15. EXIT ACTIVITY COSTS](index=29&type=section&id=Note%2015.%20EXIT%20ACTIVITY%20COSTS) This note describes costs associated with the 'Growth Driver 5 Actions' initiative, including severance and accelerated depreciation, aimed at achieving cost savings - The 'Growth Driver 5 Actions' initiative aims to simplify the operating model and achieve annual cost savings of approximately **$200 million to $300 million** by **2026**, with actions largely completed by the end of **2025**[129](index=129&type=chunk) Costs Incurred for Growth Driver 5 Actions (Twenty-Six Weeks Ended August 3, 2025) | Cost Category | Amount (Millions) | | :-------------------------------- | :---------------- | | Severance, termination benefits and other employee costs | $55.9 | | Accelerated depreciation | $2.3 | | **Total** | **$58.2** | - Liabilities related to severance, termination benefits, and other employee costs were **$56.7 million** as of **August 3, 2025**[132](index=132&type=chunk) [Note 16. NET INCOME PER COMMON SHARE](index=30&type=section&id=Note%2016.%20NET%20INCOME%20PER%20COMMON%20SHARE) This note presents basic and diluted net income per common share, along with the weighted average shares outstanding for the reported periods Net Income Per Common Share (Thirteen Weeks Ended) | Metric | Aug 3, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | | Basic net income per common share | $4.66 | $2.83 | | Diluted net income per common share | $4.63 | $2.80 | | Weighted average common shares outstanding (basic) | 48.1 million | 55.9 million | | Total shares for diluted net income per common share | 48.5 million | 56.5 million | Net Income Per Common Share (Twenty-Six Weeks Ended) | Metric | Aug 3, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | | Basic net income per common share | $3.62 | $5.46 | | Diluted net income per common share | $3.59 | $5.39 | | Weighted average common shares outstanding (basic) | 49.6 million | 56.7 million | | Total shares for diluted net income per common share | 50.0 million | 57.4 million | [Note 17. SEGMENT DATA](index=31&type=section&id=Note%2017.%20SEGMENT%20DATA) This note provides financial information by the company's new region-focused reportable segments, including revenue breakdowns by brand and distribution channel - Effective **February 3, 2025**, the company changed its reportable segments to be region-focused: EMEA, Americas, APAC, and Licensing, aligning with its new organizational structure and the PVH+ Plan[135](index=135&type=chunk) Revenue by Segment (Thirteen Weeks Ended) | Segment | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :---------------- | :--------------- | :--------------- | :---------- | :--------- | | EMEA | $1,048.5 | $1,014.2 | $34.3 | 3.4% | | Americas | $684.0 | $617.5 | $66.5 | 10.8% | | APAC | $335.2 | $339.8 | $(4.6) | -1.4% | | Licensing | $99.5 | $102.8 | $(3.3) | -3.2% | | **Total Revenue** | **$2,167.2** | **$2,074.3** | **$92.9** | **4.5%** | Revenue by Brand (Thirteen Weeks Ended) | Brand | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :---------------- | :--------------- | :--------------- | :---------- | :--------- | | Tommy Hilfiger | $1,135.9 | $1,093.4 | $42.5 | 3.9% | | Calvin Klein | $980.0 | $930.3 | $49.7 | 5.3% | | Heritage Brands | $51.3 | $50.6 | $0.7 | 1.4% | | **Total** | **$2,167.2** | **$2,074.3** | **$92.9** | **4.5%** | Revenue by Distribution Channel (Thirteen Weeks Ended) | Channel | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :--------------- | :--------------- | :---------- | :--------- | | Wholesale revenue | $1,013.1 | $954.4 | $58.7 | 6.1% | | Owned and operated retail stores | $868.0 | $836.4 | $31.6 | 3.8% | | Owned and operated digital commerce sites | $186.6 | $180.7 | $5.9 | 3.3% | | Licensing revenue | $99.5 | $102.8 | $(3.3) | -3.2% | | **Total** | **$2,167.2** | **$2,074.3** | **$92.9** | **4.5%** | [Note 18. RECENT ACCOUNTING GUIDANCE](index=35&type=section&id=Note%2018.%20RECENT%20ACCOUNTING%20GUIDANCE) This note discusses recently issued accounting standards updates from the FASB and their expected impact on the company's financial reporting - The FASB issued ASU 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' effective for the company's **2025** annual consolidated financial statements, requiring consistent categories and greater disaggregation of income tax information[144](index=144&type=chunk) - The FASB issued ASU 2025-05, 'Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets,' effective for the company's first quarter **2026** consolidated financial statements, providing a practical expedient for estimating expected credit losses[145](index=145&type=chunk) [Note 19. OTHER COMMENTS](index=35&type=section&id=Note%2019.%20OTHER%20COMMENTS) This note covers miscellaneous financial information, including the MOFCOM listing, warehousing expenses, credit loss allowance, and supply chain finance program details - China's Ministry of Commerce (MOFCOM) placed PVH Corp. on the List of Unreliable Entities in **February 2025**, following an investigation into alleged violations of normal market trading principles, with potential measures including fines, trade restrictions, or investment prohibitions[146](index=146&type=chunk) - Warehousing and distribution expenses totaled **$88.1 million** for the thirteen weeks and **$171.5 million** for the twenty-six weeks ended **August 3, 2025**[149](index=149&type=chunk) - The allowance for credit losses on trade receivables was **$26.9 million** as of **August 3, 2025**, compared to **$43.2 million** as of **August 4, 2024**[150](index=150&type=chunk) - Suppliers had elected to sell **$467.4 million** of the company's payment obligations through the voluntary supply chain finance program as of **August 3, 2025**[152](index=152&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, discussing key performance drivers, macroeconomic impacts, strategic initiatives, and liquidity [OVERVIEW](index=38&type=section&id=OVERVIEW) This section provides a high-level introduction to PVH Corp., its global brands, and its multi-year strategic PVH+ Plan - PVH Corp. is a global apparel company with over **140 years** of history, generating **$8.7 billion** in revenue in **2024**, with over **70%** from outside the United States[157](index=157&type=chunk)[158](index=158&type=chunk) - The global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over **95%** of the company's revenue[158](index=158&type=chunk) - The company introduced the PVH+ Plan in **April 2022**, a multi-year strategic plan to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands and make PVH a top-performing brand group[159](index=159&type=chunk) [RESULTS OF OPERATIONS](index=38&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, discussing revenue, gross profit, and net income trends over the reported periods [Macroeconomic Environment](index=38&type=section&id=Macroeconomic%20Environment) This section discusses the impact of inflation, tariffs, interest rates, and recession risks on the company's retail environment and financial outlook - Inflation, 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[160](index=160&type=chunk) - The recently enacted tariffs are expected to have an estimated net negative impact of approximately **$70 million** on full-year **2025** gross profit, primarily in the second half of the year, with mitigation strategies underway[162](index=162&type=chunk) - The **2025** outlook assumes no material worsening of current conditions, but revenue and earnings may be subject to significant material change due to macroeconomic factors[163](index=163&type=chunk) [Operations Overview](index=39&type=section&id=Operations%20Overview) This section describes the company's revenue generation channels, significant impairment charges, and the potential impact of the MOFCOM listing - Revenue is generated from wholesale distribution to retailers, pure play digital commerce retailers, franchisees, and distributors, as well as sales through approximately **1,350** company-operated free-standing stores, **1,450** shop-in-shop/concession locations, and digital commerce sites worldwide[164](index=164&type=chunk) - The company recorded pre-tax noncash goodwill and other intangible impairment charges of **$480 million** in the first quarter of **2025**, primarily due to a significant increase in discount rates[167](index=167&type=chunk) - China's Ministry of Commerce (MOFCOM) placed PVH Corp. on the List of Unreliable Entities in **February 2025**, which could result in fines or restrictions on the company's ability to do business in China[173](index=173&type=chunk) [Seasonality](index=40&type=section&id=Seasonality) This section explains the seasonal patterns of the company's wholesale, direct-to-consumer, and licensing businesses throughout the year - The company's wholesale businesses generally generate higher sales in the first and third quarters, while direct-to-consumer businesses tend to generate higher sales in the fourth quarter[174](index=174&type=chunk) - Licensing revenue tends to be earned somewhat evenly throughout the year, with the third quarter typically having the highest level due to higher sales by licensees in advance of the holiday selling season[174](index=174&type=chunk) [Thirteen Weeks Ended August 3, 2025 Compared With Thirteen Weeks Ended August 4, 2024](index=41&type=section&id=Thirteen%20Weeks%20Ended%20August%203%2C%202025%20Compared%20With%20Thirteen%20Weeks%20Ended%20August%204%2C%202024) This section provides a comparative analysis of the company's financial performance for the thirteen-week periods, highlighting key revenue and profit changes - Total revenue increased by **$93 million**, or **4%**, to **$2.167 billion**, including a **3%** positive impact of foreign currency translation[177](index=177&type=chunk) - Gross profit as a percentage of total revenue decreased by **240 basis points** to **57.7%**, primarily due to the transition of previously licensed product categories, initial negative impact of tariffs, increased promotional selling, and higher freight costs[182](index=182&type=chunk) - Income before interest and taxes decreased by **23%** to **$133 million**, or **6.1%** of total revenue, from **$174 million** in the prior year period[176](index=176&type=chunk) - Net income increased by **42%** to **$224 million**, significantly influenced by a **$(113) million** income tax benefit, compared to **$158 million** in the prior year[176](index=176&type=chunk)[190](index=190&type=chunk) [Twenty-Six Weeks Ended August 3, 2025 Compared With Twenty-Six Weeks Ended August 4, 2024](index=44&type=section&id=Twenty-Six%20Weeks%20Ended%20August%203%2C%202025%20Compared%20With%20Twenty-Six%20Weeks%20Ended%20August%204%2C%202024) This section offers a detailed comparison of the company's financial results for the twenty-six-week periods, focusing on revenue, gross profit, and net income drivers - Total revenue increased by **$125 million**, or **3%**, to **$4.151 billion**, including a **2%** positive impact of foreign currency translation[193](index=193&type=chunk) - Gross profit as a percentage of total revenue decreased by **260 basis points** to **58.1%**, driven by the transition of licensed product categories, initial tariff impacts, increased promotional selling, and higher freight costs[198](index=198&type=chunk) - The company recorded **$480 million** in noncash goodwill and other intangible asset impairment charges during the first quarter of **2025**[204](index=204&type=chunk) - Loss before interest and taxes was **$(199) million**, or **(4.8)%** of total revenue, a significant decrease from income of **$379 million**, or **9.4%** of total revenue, in the prior year period[192](index=192&type=chunk) - Net income decreased by **42%** to **$179 million**, despite a **$(418) million** income tax benefit, compared to **$309 million** in the prior year period[192](index=192&type=chunk)[214](index=214&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=49&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's ability to generate and manage cash, including cash flow trends, debt, and capital allocation strategies [Cash Flow Summary and Trends](index=49&type=section&id=Cash%20Flow%20Summary%20and%20Trends) This section summarizes changes in cash and cash equivalents, identifying primary drivers such as share repurchases and debt redemptions - Cash and cash equivalents decreased by **$499 million** to **$249 million** at **August 3, 2025**, from **$748 million** at **February 2, 2025**[219](index=219&type=chunk) - The decrease was primarily driven by **$561 million** paid for accelerated share repurchase (ASR) agreements and open market purchases, and the redemption of **$500 million** senior notes, partially offset by **$494 million** net proceeds from new senior notes[219](index=219&type=chunk) - The company ended the second quarter of **2025** with approximately **$1.7 billion** of borrowing capacity available under its various debt facilities[219](index=219&type=chunk) [Operations](index=49&type=section&id=Operations) This section analyzes cash provided by operating activities, attributing changes to net income fluctuations and inventory adjustments - Cash provided by operating activities decreased to **$142 million** for the twenty-six weeks ended **August 3, 2025**, from **$226 million** in the prior year period[222](index=222&type=chunk) - The decrease was primarily driven by a decrease in net income (adjusted for noncash charges) and an increase in inventory due to tariffs, investment in core product, and projected sales growth[222](index=222&type=chunk)[223](index=223&type=chunk) [Supply Chain Finance Program](index=50&type=section&id=Supply%20Chain%20Finance%20Program) This section describes the company's voluntary supply chain finance program and its impact on supplier payment obligations - The company has a voluntary supply chain finance (SCF) program allowing inventory suppliers to sell their receivables to participating financial institutions in advance of the invoice due date[224](index=224&type=chunk) - The company's payment obligations, including amounts due and payment terms, are not impacted by suppliers' participation in the SCF program[224](index=224&type=chunk) - Suppliers had elected to sell **$467.4 million** of the company's payment obligations that were outstanding as of **August 3, 2025**[225](index=225&type=chunk) [Investments in Unconsolidated Affiliates](index=50&type=section&id=Investments%20in%20Unconsolidated%20Affiliates) This section reports on dividends received from investments in unconsolidated affiliates, contributing to operating cash flows - The company received **$37 million** in dividends from its investments in unconsolidated affiliates during the twenty-six weeks ended **August 3, 2025**, contributing to operating cash flows[225](index=225&type=chunk) [Heritage Brands Intimates Transaction](index=50&type=section&id=Heritage%20Brands%20Intimates%20Transaction) This section details the net proceeds and additional gains from the divestiture of the company's women's intimates businesses - The company received net proceeds of **$156 million** from the sale of its Warner's, Olga, and True&Co. women's intimates businesses in **Q4 2023**, with an additional **$10 million** received in **Q1 2024** due to accelerated earnout realization[226](index=226&type=chunk) [Capital Expenditures](index=50&type=section&id=Capital%20Expenditures) This section outlines capital expenditures for the period and projected full-year investments in stores, IT, and distribution networks - Capital expenditures for the twenty-six weeks ended **August 3, 2025**, were **$58 million**, compared to **$75 million** in the prior year period[227](index=227&type=chunk) - Projected full-year **2025** capital expenditures are approximately **$200 million**, primarily for new stores/renovations, IT infrastructure, and enhancements to the warehouse and distribution network in Europe and North America[227](index=227&type=chunk) [Dividends](index=50&type=section&id=Dividends) This section reports on cash dividends paid on common stock and projected dividend payments for the full fiscal year - Cash dividends paid on common stock totaled **$4 million** for the twenty-six weeks ended **August 3, 2025**, consistent with the prior year[228](index=228&type=chunk) - Projected cash dividends for the full year **2025** are approximately **$7 million**[229](index=229&type=chunk) [Acquisition of Treasury Shares](index=50&type=section&id=Acquisition%20of%20Treasury%20Shares) This section details the company's stock repurchase program, including accelerated share repurchase agreements and open market purchases - The Board of Directors authorized a **$5 billion** stock repurchase program through **July 30, 2028**, with **$1.212 billion** remaining available for future repurchases as of **August 3, 2025**[230](index=230&type=chunk)[234](index=234&type=chunk) - On **April 1, 2025**, the company entered into ASR agreements to repurchase **$500 million** of common stock, receiving initial deliveries of approximately **4.6 million** shares[231](index=231&type=chunk) - During the twenty-six weeks ended **August 3, 2025**, the company purchased an additional **0.8 million** shares for **$61 million** in open market transactions[234](index=234&type=chunk) [Financing Arrangements](index=52&type=section&id=Financing%20Arrangements) This section provides an overview of the company's capital structure, debt instruments, and compliance with financial covenants Capital Structure (Millions) | Metric | Aug 3, 2025 | Feb 2, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | | Short-term borrowings | $— | $— | $8 | | Current portion of long-term debt | $13 | $511 | $511 | | Finance lease obligations | $4 | $6 | $8 | | Long-term debt | $2,256 | $1,580 | $1,668 | | Stockholders' equity | $4,867 | $5,141 | $5,192 | - The company had no short-term borrowings outstanding under its revolving credit facilities or commercial paper program as of **August 3, 2025**[237](index=237&type=chunk)[239](index=239&type=chunk) - The company issued **$500 million** principal amount of **5 1/2%** senior notes due **June 13, 2030**, using the proceeds to repay the **$500 million** principal amount of **4 5/8%** senior notes due **July 10, 2025**[255](index=255&type=chunk) - As of **August 3, 2025**, the company was in compliance with all applicable financial and non-financial covenants under its financing arrangements[257](index=257&type=chunk) [Additional Cash Requirements](index=56&type=section&id=Additional%20Cash%20Requirements) This section highlights increased cash requirements due to lease extensions for retail outlet stores in North America - During the second quarter of **2025**, the company executed lease extensions for certain retail outlet store landlords in North America, increasing cash requirements by **$874 million** over the next decade[260](index=260&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=56&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section confirms no significant changes to the company's critical accounting policies from the prior annual report - There were no significant changes to the company's critical accounting policies during the twenty-six weeks ended **August 3, 2025**, from those described in its Annual Report on Form 10-K for the year ended **February 2, 2025**[261](index=261&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate risk and foreign currency exchange rate risk, and outlines the strategies employed to mitigate these exposures, including the use of derivative instruments - Approximately **80%** of the company's long-term debt had fixed interest rates as of **August 3, 2025**; a **10 basis point** change in the one-month EURIBOR would result in an approximate **$0.5 million** annual change in variable interest expense[262](index=262&type=chunk) - Over **70%** of the company's **$8.7 billion** revenue in **2024** was generated outside the United States, exposing it to significant foreign exchange risk with both translational and transactional impacts[263](index=263&type=chunk) - The company currently expects its **2025** revenue and net income to increase by approximately **$200 million** and **$20 million**, respectively, due to the impact of foreign currency translation[265](index=265&type=chunk) - Foreign currency forward contracts are used to mitigate cash flow or market value risks associated with inventory and intercompany transactions, while foreign-denominated debt and cross-currency swap contracts are designated as net investment hedges[267](index=267&type=chunk)[270](index=270&type=chunk) [Item 4 - Controls and Procedures](index=59&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section reports that the company's disclosure controls and procedures were not effective as of August 3, 2025, due to a previously identified material weakness in internal control over financial reporting. However, management believes the financial statements are fairly presented and is actively implementing remediation measures - The company's disclosure controls and procedures were not effective as of **August 3, 2025**, due to a previously identified material weakness in internal control over financial reporting[274](index=274&type=chunk) - Notwithstanding the material weakness, management believes that the consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with U.S. GAAP and fairly present the financial condition, results of operations, and cash flows[275](index=275&type=chunk) - Management is implementing and continues to implement measures designed to remediate the control deficiencies contributing to the material weakness, but it will not be considered remediated until controls operate effectively for a sufficient period and are tested[276](index=276&type=chunk)[277](index=277&type=chunk) [PART II - OTHER INFORMATION](index=60&type=section&id=PART%20II%20--%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and other miscellaneous information pertinent to the company's operations [Item 1 - Legal Proceedings](index=60&type=section&id=Item%201%20-%20Legal%20Proceedings) This section details the ongoing investigation by China's Ministry of Commerce (MOFCOM), which resulted in PVH Corp. being placed on the List of Unreliable Entities, and outlines the potential significant adverse impacts on the company's business in China - China's Ministry of Commerce (MOFCOM) initiated an investigation in **September 2024** and subsequently placed PVH Corp. on the List of Unreliable Entities in **February 2025**, based on suspicions of violating normal market trading principles[279](index=279&type=chunk) - Potential measures from the MOFCOM listing could include monetary fines, restrictions or prohibitions on import/export activities or investments in China, and entry denial or revocation of work permits for relevant personnel[279](index=279&type=chunk) - The company cannot currently predict the duration or impact of any measures, which could have a material adverse effect on its revenue and results of operations, potentially leading to charges related to excess inventory or impairment charges[148](index=148&type=chunk) [Item 1A - Risk Factors](index=60&type=section&id=Item%201A%20-%20Risk%20Factors) This section refers to the company's Annual Report on Form 10-K for a comprehensive description of significant risks and uncertainties, stating that there have been no material changes to these risk factors as of August 3, 2025 - There have been no material changes to the risk factors as of **August 3, 2025**, from those described in the company's Annual Report on Form 10-K for the fiscal year ended **February 2, 2025**[281](index=281&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides a summary of issuer purchases of equity securities during the quarterly period, including shares acquired through open market transactions and those withheld for tax purposes related to stock-based compensation awards Issuer Purchases of Equity Securities (May 5, 2025 - August 3, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------ | | May 5, 2025 - June 1, 2025 | 46,279 | $70.25 | $1,211,808,469 | | June 2, 2025 - July 6, 2025 | 20,305 | $68.82 | $1,211,808,469 | | July 7, 2025 - August 3, 2025 | 1,521 | $73.18 | $1,211,808,469 | | **Total** | **68,105** | | **$1,211,808,469** | - The table includes shares withheld during the second quarter of **2025** in connection with the settlement of restricted stock units and performance share units to satisfy tax withholding requirements[284](index=284&type=chunk) [Item 5 - Other Information](index=62&type=section&id=Item%205%20-%20Other%20Information) This section confirms that no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the reported quarterly period - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the quarterly period ended **August 3, 2025**[285](index=285&type=chunk) [Item 6 - Exhibits](index=63&type=section&id=Item%206%20-%20Exhibits) This section provides a comprehensive list of all exhibits filed with the Form 10-Q, including corporate organizational documents, various debt indentures, and certifications required by the Sarbanes-Oxley Act - Exhibits include the Amended and Restated Certificate of Incorporation, By-Laws, various Indentures for senior notes (e.g., **4 5/8%** Senior Note due **2025**, **4.125%** Senior Notes due **2029**, **5.500%** Senior Notes due **2030**), and certifications from the CEO and CFO pursuant to Sections **302** and **906** of the Sarbanes-Oxley Act[286](index=286&type=chunk)[288](index=288&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Documents are also included as exhibits[288](index=288&type=chunk)

Group 1 - The company, PVH, has been executing its strategic plan for 3.5 years, focusing on leveraging the brand power of its iconic brands, Calvin Klein and Tommy Hilfiger [2] - PVH has a long history of 140 years and is one of the longest-traded companies on the New York Stock Exchange [1] - The business is evenly split between Calvin Klein and Tommy Hilfiger, each accounting for approximately 50% of total revenue [1] Group 2 - The company has established a strong presence globally, with the largest business in Europe and the second largest in the U.S. and North America [1] - The Asia-Pacific (APAC) region is identified as having the biggest growth potential for the company [1]

Financial Data and Key Metrics Changes - The company reported a 4% growth in Q2, with improvements in both Calvin Klein and Tommy Hilfiger brands [17] - Innovations in Calvin Klein's underwear and denim categories led to a 14% and 19% increase in sales respectively [11][60] - The company reaffirmed its earnings guidance despite tariff rates nearly doubling, with 70% of its business being international [18][68] Business Line Data and Key Metrics Changes - Calvin Klein accounts for approximately 50% of the business, with Tommy Hilfiger making up the other half [3] - Significant growth was noted in the direct-to-consumer (D2C) channel, with sequential improvements in performance [23][31] - The company is focusing on high-quality growth in wholesale, with order books showing low single-digit growth for the upcoming spring season [22] Market Data and Key Metrics Changes - The European market remains the strongest for the company, with a path to high single-digit growth anticipated [21] - In APAC, particularly China, the company saw significant growth during major consumer events, ranking in the top five international brands on Tmall [40][41] - The company opened a flagship store in Harajuku, Japan, which generated significant consumer interest and sales across all channels [44][48] Company Strategy and Development Direction - The company aims to leverage the brand power of Calvin Klein and Tommy Hilfiger to create value, focusing on cultural relevance and consumer engagement [5][6] - The PVH Plus strategy emphasizes stronger product offerings and disciplined marketplace execution to drive growth [27][70] - The company is centralizing its global product creation to improve efficiency and margins, with expectations of significant improvements in the second half of the year [50][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain tariff environment while maintaining strong brand relevance [26][68] - The company anticipates that brand strength will become increasingly important in a competitive landscape [30] - Management is optimistic about achieving margin expansion through improved consumer offerings and cost efficiency measures [70][72] Other Important Information - The company is focusing on building a strong consumer base by enhancing product storytelling and engagement strategies [34][35] - The management highlighted the importance of forward-looking planning and execution to ensure successful product launches and market presence [60][62] Q&A Session Summary Question: What gives confidence in the improvement trend in Europe? - Management noted strong brand positioning and growth in wholesale order books as indicators of improvement [22] Question: Expectations for the North American environment in 2025? - Management acknowledged uncertainty but expressed confidence in the strength of their brands and consumer response [26] Question: How is the competitive environment expected to change? - Management believes brand strength and relevance will be crucial for gaining market share [30] Question: What changes are expected in DTC performance? - Management reported sequential improvements in DTC performance and emphasized the importance of product storytelling [31][34] Question: How is the company addressing tariff impacts? - Management is working on mitigation strategies and remains focused on improving the consumer offering [66][70] Question: What is the outlook for operating margins? - Management is confident in achieving margin expansion through disciplined execution of the PVH Plus plan [70][72]

Financial Data and Key Metrics Changes - The company reported a 4% growth in Q2, with improvements in both Calvin Klein and Tommy Hilfiger brands [17] - Innovations in Calvin Klein's underwear and denim categories led to sales increases of 14% and 19% respectively [11][64] - The company reaffirmed its earnings guidance despite tariff rates nearly doubling, with 70% of its business being international [18][71] Business Line Data and Key Metrics Changes - Calvin Klein and Tommy Hilfiger each contribute approximately 50% to the company's overall business [3] - The company has seen sequential improvement in direct-to-consumer (DTC) performance, indicating a growing consumer base and improved customer engagement [32][33] - The wholesale order books in Europe are showing low single-digit growth, indicating a positive trend for the upcoming seasons [22][24] Market Data and Key Metrics Changes - The company has the strongest business presence in Europe and significant growth potential in the Asia-Pacific (APAC) region [4][41] - In China, both Calvin Klein and Tommy Hilfiger ranked among the top five international brands on Tmall during major shopping events [41] - The APAC region is the company's highest DTC market, heavily weighted towards full-price sales [43] Company Strategy and Development Direction - The company aims to leverage the brand power of Calvin Klein and Tommy Hilfiger to drive growth, focusing on cultural relevance and consumer engagement [5][6] - The PVH Plus strategy emphasizes stronger product offerings and improved customer experiences to enhance brand relevance and pricing power [28][73] - The company is investing in flagship stores globally to enhance brand expression and drive sales across all channels [49][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the North American market despite uncertainties related to tariffs, highlighting strong consumer responses to their brands [27][29] - The company is focused on long-term growth and improving the consumer offering, which is expected to drive margin expansion [73][75] - Management acknowledged challenges faced in product creation but emphasized that improvements are being made to stabilize and enhance gross margins [56][60] Other Important Information - The company has centralized its global product creation team to improve efficiency and effectiveness in product offerings [52][53] - The opening of the Harajuku flagship store for Calvin Klein was met with significant consumer interest, indicating strong brand engagement [45][49] - The company is adapting its marketing strategies to better connect with consumers and drive conversion rates [36][37] Q&A Session Summary Question: What gives confidence in improvement trends in Europe? - Management noted strong brand positioning and growth in wholesale order books as indicators of improvement [22][24] Question: Expectations for the North American environment in 2025? - Management sees uncertainty but remains encouraged by consumer responses and strong DTC performance [27][29] Question: How is the competitive environment expected to change? - Management believes brand strength and relevance will become increasingly important for market share [30][31] Question: What changes are expected in DTC performance? - Management highlighted sequential improvements in DTC and a focus on building consumer engagement [32][33] Question: What is the outlook for APAC and China? - Management reported stabilization in APAC and significant growth during major shopping events in China [41][42] Question: How is the company addressing tariff impacts? - Management is working on mitigation strategies and believes that international business provides a competitive advantage [68][71] Question: Is margin expansion achievable? - Management affirmed that margin expansion is achievable through improved consumer offerings and disciplined cost management [73][75]

Core Insights - Abercrombie & Fitch's stock experienced a remarkable increase of 1790% from 2020 to mid-2024, indicating a significant deep value re-rating opportunity in the market [1] Investment Opportunity - An investment of $2,000 in Abercrombie & Fitch could have resulted in a profit of $39,000, showcasing the potential returns available in this stock [1]

Core Insights - PVH Corporation reported better-than-expected results for Q2 of fiscal 2025, with revenues and earnings exceeding the Zacks Consensus Estimate, although the bottom line decreased year over year while the top line increased [1][2][5] Financial Performance - Adjusted earnings were $2.52 per share, down 16.3% from $3.01 in the prior year, surpassing the Zacks Consensus Estimate of $1.97 and the company's guidance of $1.85-$2.00 [5] - Revenues increased by 4% year over year to $2.17 billion, beating the consensus mark of $2.10 billion, with management guiding for low-single digit revenue growth [6][12] - Direct-to-consumer revenues rose 4% year over year, while wholesale revenues climbed 6% [7][8] Segment Analysis - EMEA revenues increased 3% year over year to $1.05 billion, while Americas revenues climbed 11% to $684 million, driven by wholesale growth [13][14] - APAC revenues decreased by 1% year over year to $335.2 million, with direct-to-consumer revenues flat despite challenges in the region [15] Cost and Margin Details - Gross profit was $1.25 billion, nearly flat year over year, with gross margin contracting 240 basis points to 57.7% due to various cost pressures [9] - Adjusted selling, general and administrative expenses were $1.08 billion, up 1.5% year over year [10] Future Outlook - For Q3, revenues are projected to be flat to slightly up year over year, with adjusted earnings per share expected to be between $2.35 and $2.50 [21] - For fiscal 2025, reported revenues are expected to rise slightly to the low-single digits, with an adjusted EPS guidance of $10.75-$11.00 [23][24]

Financial Data and Key Metrics Changes - The company reported a 4% increase in revenue on a reported basis and a 1% increase on a constant currency basis for Q2 2025, exceeding guidance [5][34] - Gross margin was 57.7%, a decrease of 240 basis points compared to the previous year, but better than planned [39] - Earnings per share (EPS) was $2.52, reflecting a negative impact of $0.06 related to tariffs [41] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue was flat in constant currency, showing sequential improvement compared to Q1 [5] - Wholesale revenue grew by low single digits in constant currency, benefiting from the relaunch of Calvin Klein women's businesses in North America [5][36] - In the Americas, revenue increased by low double digits, driven by strong digital commerce growth [25][36] Market Data and Key Metrics Changes - In Europe, D2C growth continued with retail store sales up mid single digits, marking the fourth consecutive quarter of growth [35][24] - Asia Pacific revenue declined by 3% in constant currency, but showed significant sequential improvement compared to Q1 [36][27] - The Americas saw a 11% revenue increase, driven by double-digit growth in wholesale [36] Company Strategy and Development Direction - The company is focusing on strengthening its Calvin Klein and Tommy Hilfiger brands through strategic investments in marketing and product innovation [7][30] - Plans to open flagship stores in Tokyo and Soho, New York, are part of the global retail expansion strategy [15][99] - The company aims to navigate tariff impacts through a diversified revenue base and strategic sourcing partnerships [46][47] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the brand strength and execution capabilities [30][51] - The company reaffirmed its full-year guidance for constant currency revenue and operating margin despite tariff challenges [46][42] - Management highlighted the importance of leveraging product strength and marketing to drive consumer engagement and sales [80][81] Other Important Information - The company is experiencing a significant increase in inventory, up 13% compared to Q2 last year, reflecting planned improvements [41] - Strategic investments in marketing are expected to generate higher visibility and customer impact in the second half of the year [7][45] Q&A Session Summary Question: Insights on marketing investments - Management indicated that increased marketing investments are driven by strong product performance and the need to build momentum for the second half [54][56] Question: Tariff impacts and outlook - Management discussed the challenges posed by tariffs and the strategies in place to mitigate their effects, emphasizing the strength of their diversified supply chain [62][68] Question: Operational updates on Calvin Klein transformation - Management reported sequential improvements in operational execution for Calvin Klein, with a strong global product engine now in place [73][74] Question: Drivers of D2C improvement in North America - The improvement was attributed to product strength, enhanced marketing efforts, and increased consumer engagement [80][81] Question: Update on outlet traffic and consumer trends - Management noted sequential improvement in outlet traffic and emphasized the importance of brand desirability in driving consumer engagement [65][91]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 4% on a reported basis and 1% on a constant currency basis, exceeding guidance [5][32] - Gross margin was 57.7%, a decrease of 240 basis points compared to last year, but better than planned [36] - Earnings per share (EPS) was $2.52, reflecting a negative impact of $0.06 related to tariffs [38] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue was flat in constant currency, with a sequential improvement compared to Q1 [5] - Wholesale revenue grew by low single digits in constant currency, benefiting from the relaunch of Calvin Klein women's businesses [5][32] - Calvin Klein revenues were up 5% as reported and up 3% in constant currency, while Tommy Hilfiger revenues were up 4% as reported and flat in constant currency [35] Market Data and Key Metrics Changes - In Europe, D2C growth continued with retail store sales up mid single digits, marking the fourth consecutive quarter of year-over-year growth [32][23] - The Americas saw revenue growth of low double digits, driven by strong B2C performance across both brands [24] - Asia Pacific revenue declined by low single digits in constant currency, but showed significant sequential improvement [26][34] Company Strategy and Development Direction - The company is focusing on strengthening its Calvin Klein and Tommy Hilfiger brands through strategic investments in marketing and product innovation [6][29] - A multi-year initiative is underway to simplify the operating model and achieve cost savings, with a focus on brand building and consumer engagement [3][29] - The company is committed to expanding its global retail presence, with new flagship stores opening in key markets like Tokyo and Soho [14][97] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by increased tariff rates but expressed confidence in navigating the macroeconomic environment [40][44] - The outlook for the third quarter includes projected revenue to be flat to a slight increase on a reported basis, with continued focus on brand strength and consumer engagement [41][44] - Management remains optimistic about the long-term growth potential of Calvin Klein and Tommy Hilfiger, despite current uncertainties [29][49] Other Important Information - Inventory at quarter end was up 13% compared to Q2 last year, reflecting a planned improvement [38] - The company is increasing strategic investments in marketing to enhance visibility and customer impact [6][40] - The licensing business continues to grow, contributing to sustainable profitable growth [28] Q&A Session Summary Question: What drove the increase in marketing investments? - Management indicated that the step-up in execution and product strength led to increased marketing investments to build on Q2 momentum [51][52] Question: How will tariffs impact gross margins moving into 2026? - Management noted that tariffs are affecting the entire sector, but with a diversified revenue base and strong brand positioning, they are confident in their ability to mitigate these impacts over time [59][63] Question: Can you provide an operational update on Calvin Klein's transformation? - Management reported sequential improvements in operational challenges and expressed confidence in the global product capabilities established in New York [70][71] Question: What are the drivers of sequential improvement in North America D2C? - The improvement was driven by product strength, enhanced marketing, and increased consumer engagement [76][79] Question: What is the outlook for the wholesale environment in North America? - Management indicated a normalization of wholesale shipments and a strong performance with full-price partners [105][106]

PVH Corp. boosted its forecast for the current year following stronger sales in the second quarter on celebrity partnerships and entertainment deals https://t.co/upWeWk9bF8 ...