PVH(US:PVH) ZACKSยท2025-06-05 16:01Core Insights - PVH Corporation reported better-than-expected results for Q1 FY2025, with earnings and revenues exceeding the Zacks Consensus Estimate, although earnings declined year-over-year while revenues increased [1][2] Financial Performance - Adjusted earnings were $2.30 per share, down 6.1% from $2.45 in the prior year, surpassing the Zacks Consensus Estimate of $2.24 and the company's guidance of $2.10-$2.25 [2] - Revenues increased by 2% year-over-year to $1.984 billion, beating the consensus estimate of $1.936 billion [6] - Gross profit was $1.16 billion, a decrease of 3.2% year-over-year, with a gross margin contraction of 280 basis points to 58.6% [9] - Adjusted selling, general and administrative expenses remained nearly flat at $1 billion, while adjusted earnings before interest and taxes totaled $160.5 million, down 17.7% from the previous year [10] Segment Performance - EMEA revenues grew by 5% year-over-year, while Americas revenues increased by 7%, driven by wholesale growth [12][13] - APAC revenues fell by 13% due to a tough consumer environment, particularly in China [14] - Calvin Klein segment revenues were flat year-over-year, while Tommy Hilfiger revenues rose by 3% [15] Future Outlook - For Q2 FY2025, revenues are projected to rise low-single digits year-over-year, with adjusted EPS expected in the range of $1.85-$2, lower than $3.01 from the previous year [18][19] - For fiscal 2025, the company anticipates revenues to be flat to slightly up year-over-year, with adjusted operating margin expected to be around 8.5%, down from earlier guidance of flat to slightly up from 10% [20][21] Strategic Initiatives - PVH is focused on enhancing brand impact through solid product offerings and marketing campaigns, aiming to strengthen its key brands in the latter half of 2025 [3] - The company is committed to its multi-year cost savings plan, Growth Driver 5, to support growth in the second half of the fiscal year [3]