PVH(US:PVH)2025-08-26 20:19Revenue 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]