PVH (NYSE:PVH) Q3 2025 Earnings Call December 04, 2025 09:00 AM ET Company ParticipantsSheryl Freeman - SVP of Investor RelationsZac Coughlin - CFOJay Sole - Managing DirectorStefan Larsson - CEODana Telsey - CEO and Chief Research OfficerConference Call ParticipantsMatthew Boss - Equity Research AnalystBob Drbul - Managing Director and Consumer Retail AnalystMichael Binetti - Senior Managing Director and Fundamental Research AnalystOperatorGood morning, everyone, and welcome to today's PVH Q3 2025 earnings ...

Financial Data and Key Metrics Changes - Total revenue for the company was $2.3 billion, down less than 1% in constant currency, and in line with expectations [4] - EPS was $2.83, reflecting a negative impact of $0.37 related to tariffs and a positive impact of $0.14 related to exchange [34] - Gross margin was 56.3%, a decrease of 210 basis points compared to last year, primarily due to tariffs and product shipment delays [31][32] Business Line Data and Key Metrics Changes - Direct-to-consumer revenue was down 1% in constant currency, partially offset by 1% growth in wholesale revenue [4] - Calvin Klein saw strong growth in underwear and denim, with double-digit growth in new product launches [9][10] - Tommy Hilfiger launched successful campaigns, driving double-digit growth in key categories like transitional outerwear and sweaters [19][13] Market Data and Key Metrics Changes - In Europe, revenues declined low single digits in constant currency, with D2C down mid-single digits [6][14] - The Americas grew overall revenue by 2%, driven by wholesale growth, while D2C declined low single digits [17][28] - Asia Pacific delivered flat revenue in constant currency, with notable improvements in D2C performance, particularly in China [18][30] Company Strategy and Development Direction - The company is focused on building Calvin Klein and Tommy Hilfiger into desirable lifestyle brands through innovation and marketing [5][23] - The PVH Plus Plan aims to enhance brand strength and operational efficiency, with a focus on key growth categories [5][7] - The company is investing in marketing and expanding its retail presence, including flagship stores in key locations [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uneven global consumer backdrop but expressed confidence in brand execution and growth potential [5][25] - The company reaffirmed its full-year constant currency revenue and operating margin guidance, narrowing reported revenue and EPS outlook to the high end of previous ranges [25][37] - Management highlighted the importance of upcoming holiday sales and the positive consumer response during Black Friday [60] Other Important Information - The company is undergoing leadership changes, with a new Chief Supply Chain Officer appointed and the CFO departing for a new opportunity [21][22] - Inventory levels were up 3% compared to last year, reflecting improved management despite tariff impacts [25][34] Q&A Session Summary Question: Can you unpack the geographic performance dynamics across the Americas, Europe, and APAC? - Management noted that Europe faced a muted consumer backdrop in September, while the Americas saw e-commerce growth and a strong Black Friday performance. APAC exceeded expectations with notable improvements in China, Japan, and Australia [42][43] Question: What impact is the increased marketing spending having? - The company is disciplined in marketing investments, focusing on key growth categories, which has resulted in double-digit growth in underwear and denim [45][46] Question: How is the Calvin Klein product design consolidation process progressing? - Management confirmed that they are on track with product delivery and margin recapture, with positive feedback from wholesale partners [51][52] Question: Is the improving weather in Europe helping with outerwear sales? - Yes, improved weather conditions are expected to boost sales of cold-weather categories, although the consumer is increasingly leaning towards transitional outerwear [58]