Key Takeaways PVH benefits from the PVH Plan and the strength of Calvin Klein and Tommy Hilfiger brands.PVH focuses on brand-led growth, digital engagement and a simplified, data-driven operating model at PVH.PVH faces sluggish Heritage Brands growth, macro pressure, heavy promotions and tariff impacts.PVH Corporation (PVH) has been gaining from the strong execution of the PVH+ Plan, alongside strength in its brands and cost-management efforts. The plan mainly aims at accelerating growth by boosting its cor ...

Core Insights - PVH Corporation reported third-quarter fiscal 2025 results with revenues and earnings exceeding Zacks Consensus Estimates, although earnings declined year over year while revenues increased [1][5][11] Financial Performance - Adjusted earnings per share were $2.83, down 6.6% from $3.03 in the prior year, but above the consensus estimate of $2.56 and the company's guidance of $2.35-$2.50 [5] - Revenues rose 2% year over year to $2.29 billion, surpassing the consensus mark of $2.26 billion, although it was down 1% on a constant-currency basis [5] - Gross profit was $1.29 billion, a decrease of 1.81% year over year, with a gross margin contraction of 210 basis points to 56.3% due to higher tariffs and increased promotional costs [8] - Adjusted selling, general and administrative expenses were $1.09 billion, up 0.8% year over year, while adjusted earnings before interest and taxes totaled $202.3 million, down 14.5% from the prior year [9] Segment Performance - EMEA revenues increased 4% year over year to $1.11 billion, but declined 2% on a constant-currency basis [12] - Americas revenues rose 2% year over year to $682.8 million, driven by wholesale growth, while direct-to-consumer business saw a decline [13] - APAC revenues decreased 1% year over year to $391.9 million, remaining flat on a constant-currency basis [14] - Calvin Klein segment revenues increased 2% year over year, while Tommy Hilfiger revenues rose 1% year over year [15] Strategic Outlook - Management reaffirmed full-year constant-currency revenue and margin outlook, narrowing projections for reported revenues and non-GAAP EPS toward the high end of prior ranges [3] - PVH is focused on accelerating innovation, expanding marketing campaigns, and enhancing marketplace execution to support long-term growth [4] - For fiscal 2025, PVH anticipates low single-digit revenue growth and adjusted EPS of $10.85-$11.00, reflecting an unfavorable impact from tariffs [21][22]

Core Viewpoint - Zac Coughlin, the CFO of PVH Corp., is leaving to join SiriusXM, with Melissa Stone stepping in as interim CFO [1][3][4] Company Transition - Coughlin will remain with PVH until the end of December and will participate in the third-quarter earnings call on December 4 [2] - The company has reaffirmed its revenue and profit guidance for the remainder of the year, providing some time to find a new CFO [2][6] Leadership Comments - CEO Stefan Larsson expressed gratitude for Coughlin's contributions, highlighting his role in advancing the PVH+ Plan and driving cost efficiencies [4] - Coughlin expressed pride in his role at PVH and optimism for the company's future under current leadership [4] Market Reaction - Investors reacted positively to the leadership change, with PVH shares declining only 3.2% to $73.67, resulting in a market capitalization of $3.5 billion [4] Analyst Insights - Analyst Tom Nikic noted that while C-suite turnover poses risks, the company's financial guidance remains unchanged, indicating low risk for current projections [5][6] - Nikic highlighted that the PVH+ Plan was largely developed before Coughlin's arrival, suggesting that the strategy is not solely attributed to him [5] - The stock is viewed as undervalued, trading at 7 times fiscal 2025 guidance, indicating potential for a significant re-rating if market conditions improve [7]

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]