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 ...

Revenue Performance - Second quarter revenue increased 4% to $2.167 billion, exceeding guidance of a low single-digit increase[5] - Revenue for the quarter ended August 3, 2025, was $2,167.2 million, an increase of 4.5% compared to $2,074.3 million for the same quarter in 2024[33] - Total revenue for the quarter ended August 3, 2025, was $2,167.2 million, a 4.5% increase from $2,074.3 million in the same quarter last year[44] - EMEA revenue increased 3%, while Americas revenue rose 11%, driven by wholesale growth[8] - Calvin Klein revenue grew 5%, with significant contributions from underwear and fashion denim[8] - Revenue from the Tommy Hilfiger brand for the quarter ended August 3, 2025, was $1,135.9 million, up from $1,093.4 million, indicating a growth of 3.9%[45] - EMEA revenue grew by 3.4% to $1,048.5 million, while APAC revenue decreased by 1.4% to $335.2 million[51] - Direct-to-Consumer revenue totaled $1,054.6 million, reflecting a 3.7% increase year-over-year[51] - Wholesale revenue increased by 6.2% to $1,013.1 million compared to $954.4 million in the previous year[51] - Owned and operated retail stores generated $868.0 million, a 3.8% increase from $836.4 million in Q2 2024[51] Earnings and Profitability - Non-GAAP EPS for the second quarter was $2.52, surpassing guidance of $1.85 to $2.00[5] - Net income for the quarter was $224.2 million, compared to $158.0 million in the same quarter of the previous year, representing a 42% increase[33] - Diluted net income per share for the quarter was $4.63, up from $2.80 in the same quarter of 2024[33] - For the six months ended August 3, 2025, net income on a non-GAAP basis was $240.8 million, compared to $313.1 million in the same period last year, a decrease of 23.1%[39] - The effective income tax expense on a non-GAAP basis for the quarter was $34.0 million, compared to a benefit of $(0.1) million in the prior year[40] - The company incurred SG&A expenses associated with the Growth Driver 5 Actions amounting to $45.0 million for the quarter[39] - Earnings before interest and taxes (EBIT) on a non-GAAP basis for the quarter was $178.2 million, compared to $189.2 million in the prior year, a decrease of 5.3%[39] - The GAAP operating margin for the full year 2024 was reported at 8.9%, with a non-GAAP operating margin of 10.0%[52] Costs and Expenses - Operating margin outlook reaffirmed at approximately 8.5% on a non-GAAP basis, inclusive of recent tariff increases[5] - Gross margin decreased to 57.7% from 60.1% in the prior year, impacted by increased tariffs and promotional environment[8] - Selling, general and administrative (SG&A) expenses on a non-GAAP basis were $1,083.9 million for the quarter, compared to $1,068.0 million in the same quarter last year, a slight increase of 1.6%[39] - The company reported a total of $1,128.9 million in SG&A expenses for the quarter, which includes the excluded items[39] - Interest expense projected to increase to approximately $80 million for 2025, primarily due to accelerated share repurchase agreements[23] - Pre-tax restructuring costs totaled $58 million in 2025, primarily related to severance from the company's initiative to simplify its operating model[27] - The company incurred pre-tax costs of $51 million in the third quarter of 2024 related to an amendment of an employment agreement[27] - The company reported a pre-tax loss of $28 million in the fourth quarter of 2024 related to retirement plans[27] Strategic Outlook - Full year revenue outlook raised to low single-digit growth, reaffirming flat to slight increase on a constant currency basis[5] - The company emphasizes the importance of non-GAAP financial measures to provide a clearer view of ongoing operations and performance trends[35] - The company is focusing on restructuring costs related to the Growth Driver 5 Actions, which impacted net income in the applicable periods[41] - The positive impact of foreign exchange on constant currency revenue was 1.2% for Q2 2025[51] Asset Management - Total current assets decreased to $3,299.3 million as of August 3, 2025, from $3,414.4 million as of August 4, 2024, a decline of 3.4%[42] - Cash and cash equivalents decreased significantly to $248.8 million from $610.0 million year-over-year, a drop of 59.3%[42] - The company reported total assets of $11,627.6 million as of August 3, 2025, an increase from $11,237.7 million as of August 4, 2024, reflecting a growth of 3.5%[42] Conference and Communication - The company will host a conference call on August 27, 2025, to discuss its second quarter earnings release[28]

Core Insights - Abercrombie & Fitch (ANF) and PVH are set to report their Q2 results, attracting investor interest as potential buy-the-dip candidates due to a possible rate cut in September [1][2] Q2 Expectations - Abercrombie & Fitch is expected to report a nearly 5% year-over-year sales increase to $1.19 billion, but earnings per share (EPS) are projected to decline by 9% to $2.27 [4] - PVH's Q2 sales are anticipated to rise by 1% to $2.1 billion, while EPS is expected to drop over 34% to $1.97 [6] Performance History - Abercrombie & Fitch has surpassed sales expectations for 11 consecutive quarters and has exceeded the Zacks EPS Consensus for nine straight quarters, with an average earnings surprise of 11.24% [4][8] - PVH has exceeded sales estimates for six straight quarters and has surpassed the Zacks EPS Consensus for 17 consecutive quarters, with an average earnings surprise of 13.47% [8] Valuation Metrics - Both ANF and PVH stocks are trading under 10 times forward earnings and below 2 times sales, earning an "A" Zacks Style Scores grade for Value [10] Investment Outlook - The upcoming Q2 reports and guidance for both companies will be critical for determining potential upside, with both currently holding a Zacks Rank 3 (Hold) [12]

Group 1 - PVH Corp. is expected to report second-quarter earnings of $2.00 per share, a decrease from $3.01 per share in the same period last year [1] - The company projects quarterly revenue of $2.12 billion, up from $2.07 billion a year earlier [1] - PVH currently offers an annual dividend yield of 0.19%, translating to a semi-annual dividend of 4 cents per share [2] Group 2 - To earn $500 monthly from dividends, an investment of approximately $3,194,800 or around 40,000 shares is required [2] - For a more modest income of $100 per month, an investment of $638,960 or around 8,000 shares is necessary [2] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price [3] Group 3 - Changes in stock price affect the dividend yield; for instance, if a stock priced at $50 paying a $2 annual dividend rises to $60, the yield drops to 3.33% [3] - Conversely, if the stock price falls to $40, the yield increases to 5% [3] - An increase in dividend payments will raise the yield if the stock price remains unchanged [4] Group 4 - PVH shares gained 4.6% to close at $79.87 [4] - Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating for PVH with a price target of $90 [4]

Core Insights - PVH Corporation is expected to report a year-over-year decline in earnings for Q2 fiscal 2025, with revenues projected at $2.1 billion, reflecting a growth of 1.3% from the previous year, while earnings per share (EPS) are estimated to decline by 34.6% to $1.97 [1][10] Group 1: Earnings Performance - The Zacks Consensus Estimate for PVH's Q2 earnings has remained unchanged at $1.97 per share over the past 30 days, indicating a significant decline compared to the previous year [1] - In the last reported quarter, PVH delivered an earnings surprise of 2.7%, with an average trailing four-quarter earnings surprise of 13.5% [2] Group 2: Market Challenges - PVH is facing a challenging operating environment, particularly in the Asia-Pacific region and China, where macroeconomic headwinds are negatively impacting consumer sentiment [3][4] - The company is experiencing pressure on gross margins due to a more promotional retail environment, higher raw material costs, and currency headwinds, which are expected to affect profitability [5][6] Group 3: Strategic Initiatives - Despite the challenges, PVH's diversified brand portfolio positions it to achieve above-average industry growth, supported by effective marketing strategies and financial control [7] - The PVH+ Plan aims to accelerate growth by enhancing core strengths and connecting key brands with consumers, which may provide some cushion to quarterly performance [8] Group 4: Valuation and Market Performance - PVH shares are trading at a forward 12-month price-to-earnings ratio of 6.74X, below the five-year median of 8.6X and the industry average of 11.03X, indicating an attractive valuation opportunity [12] - Over the past three months, PVH's shares have declined by 8.9%, compared to a 16.4% decline in the industry [13]

Core Viewpoint - Analysts project that PVH will report quarterly earnings of $1.97 per share, reflecting a year-over-year decline of 34.6%, with revenues expected to reach $2.1 billion, an increase of 1.3% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised downward by 1.7% in the past 30 days, indicating a reassessment by covering analysts [2] - The projected revenue for Tommy Hilfiger is estimated at $1.12 billion, suggesting a year-over-year increase of 2.1% [4] - Total Calvin Klein revenue is expected to reach $920.13 million, indicating a year-over-year decline of 1.1% [5] - Heritage Brands revenue is projected at $65.19 million, reflecting a significant year-over-year increase of 28.8% [5] Group 2: Market Performance and Analyst Insights - Over the past month, PVH shares have declined by 2%, while the Zacks S&P 500 composite has increased by 1.7% [5] - The relationship between earnings estimate revisions and short-term stock price performance is emphasized, suggesting that these revisions are critical for predicting investor behavior [3] - PVH holds a Zacks Rank 3 (Hold), indicating that its performance is expected to align with the overall market in the near term [5]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for PVH despite an increase in revenues when the company reports its quarterly results for the period ending July 2025 [1][3]. Earnings Expectations - PVH is expected to report earnings of $1.97 per share, reflecting a decline of 34.6% year-over-year, while revenues are projected to be $2.1 billion, an increase of 1.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.66% over the last 30 days, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for PVH is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.12%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, PVH exceeded the expected earnings of $2.24 per share by delivering $2.30, resulting in a surprise of +2.68%. Over the last four quarters, the company has consistently beaten consensus EPS estimates [13][14]. Investment Considerations - Despite the historical ability to beat estimates, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a positive earnings surprise for PVH [12][17].

Core Viewpoint - PVH shares have increased by approximately 9.3% over the past month, outperforming the S&P 500, but there are concerns about potential pullbacks leading up to the next earnings release [1] Estimates Movement - Estimates for PVH have trended downward over the past month, with the consensus estimate shifting down by 23.15% [2] VGM Scores - PVH has a Growth Score of D and a Momentum Score of F, but it received an A for Value, placing it in the top quintile for this investment strategy. The overall aggregate VGM Score for PVH is C [3] Outlook - The downward trend in estimates indicates a negative outlook for PVH, reflected in its Zacks Rank of 5 (Strong Sell), suggesting below-average returns in the coming months [4] Industry Performance - PVH is part of the Zacks Textile - Apparel industry, where Ralph Lauren has seen a 1.7% increase in shares over the past month. Ralph Lauren reported revenues of $1.7 billion for the last quarter, marking an 8.3% year-over-year increase [5] - For the current quarter, Ralph Lauren is expected to report earnings of $3.40 per share, reflecting a 25.9% increase from the previous year, with a slight estimate change of -0.6% over the last 30 days. Ralph Lauren holds a Zacks Rank of 3 (Hold) [6]