PVH(PVH) - 2026 Q1 - Quarterly Results

Revenue Performance - Q1 2025 revenue increased 2% to $1.984 billion, exceeding guidance of flat to a decrease of 2%[5] - The Company reported revenue of $1,983.6 million for the quarter ended May 4, 2025, compared to $1,951.9 million for the same quarter in 2024, representing a year-over-year increase of approximately 1.6%[31] - Total revenue for the quarter was $1,983.6 million, a slight increase of 1.6% compared to $1,951.9 million in the same quarter last year[43] - EMEA revenue increased 5% and Americas revenue increased 7% in Q1 2025, while APAC revenue decreased 13%[9] - Revenue by segment showed growth in EMEA at $927.7 million, up from $882.9 million, while the Asia-Pacific segment declined to $351.7 million from $402.5 million[43] - Tommy Hilfiger brand revenue increased by 3.4% to $1,048.1 million, while Calvin Klein remained relatively stable with a slight decrease of 0.1%[49] - Direct-to-Consumer revenue decreased by 3.4% to $816.5 million, driven by a 4.9% decline in owned and operated retail stores[49] Earnings and Profitability - Non-GAAP EPS for Q1 2025 was $2.30, surpassing guidance of $2.10 to $2.25[5] - Full year 2025 EPS projected to be in the range of $10.75 to $11.00, down from previous guidance of $12.40 to $12.75[5] - Gross margin for Q1 2025 was 58.6%, down from 61.4% in the prior year period[16] - Gross profit for the quarter was $1,161.7 million, down from $1,198.7 million in the prior year, indicating a decrease of about 3.1%[31] - Earnings before interest and taxes (EBIT) on a non-GAAP basis was $160.5 million, down from $195.1 million year-over-year[36] - The net loss for the quarter was $44.8 million, compared to a net income of $151.4 million in the prior year, reflecting a significant decline[31] - The diluted net loss per common share was $0.88 for the quarter, compared to diluted net income per share of $2.59 in the same quarter of the previous year[31] Financial Position and Cash Flow - Cash and cash equivalents decreased to $191.0 million from $376.2 million year-over-year, indicating liquidity challenges[41] - The company’s total assets decreased to $10,672.4 million from $10,788.7 million, reflecting a decline in overall financial position[41] - Inventory increased 19% compared to the prior year, driven by investments in core product availability[16] Costs and Expenses - Selling, general and administrative expenses were $1,023.9 million for the quarter, slightly up from $1,017.3 million in the same quarter last year[31] - SG&A expenses on a non-GAAP basis were reported at $1,010.7 million, compared to $1,023.9 million in the previous year[36] - The Company incurred pre-tax restructuring costs totaling $24 million in 2024, primarily related to severance and the sale of a warehouse and distribution center[27] - The Company recognized $28 million in actuarial losses on retirement plans and $24 million in restructuring costs related to Growth Driver 5 Actions[50] Strategic Initiatives and Outlook - Full year 2025 revenue outlook reaffirmed as flat to slightly increase, with projected operating margin around 8.5%[23] - The Company emphasizes the importance of non-GAAP financial measures to provide a clearer view of ongoing operations, excluding non-recurring and non-operational amounts[33] - The Company plans to simplify its operating model through a multi-year initiative, which includes centralizing processes and improving systems[28] - Forward-looking statements regarding future revenue and earnings are subject to risks and uncertainties, including economic conditions and changes in consumer sentiment[28] - Estimated net negative impact of tariffs on full year 2025 EBIT is approximately $65 million, or $1.05 per share[15] Impairments and Charges - The Company recorded pre-tax noncash goodwill and other intangible asset impairment charges of $480 million in the first quarter of 2025, primarily due to a significant increase in discount rates[27] - Goodwill and other intangible asset impairments amounted to $479.5 million for the quarter, significantly impacting net income[37] - Effective tax rate for Q1 2025 was 87.2% on a GAAP basis, influenced by non-deductible impairment charges[16]