PVH Profits Slip, but Top Q3 Estimates as Reinvention Continues

Core Insights - PVH Corp. reported a decline in third-quarter profits but exceeded expectations, as CEO Stefan Larsson continues to transform the company into a more agile brand builder focused on its iconic brands Calvin Klein and Tommy Hilfiger [1][2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.83, down from $3.03 year-over-year, but 29 cents higher than analysts' expectations of $2.54 [2] - Net earnings fell significantly to $4.2 million from $131.9 million, primarily due to a $121 million increase in tax expenses related to goodwill and asset impairment charges [3] - Revenues for the three months ended November 2 increased by 2 percent to $2.3 billion, translating to a less than 1 percent drop on a constant currency basis [5] Brand Strategy and Market Position - Larsson emphasized the importance of focusing on the core strengths of the brands and driving relevance in product, marketing, and shopping experience [2] - The company is leveraging product innovation, as seen with the popularity of the quarter zip sweater at Tommy Hilfiger and a 20 percent increase in sales of Calvin Klein's Icon Cotton Stretch underwear [4] - Collaborations with high-profile names like Bad Bunny and Rosalía are part of the strategy to amplify brand impact [4]