Financial Data and Key Metrics Changes - The company reported a 4% growth in Q2, with improvements in both Calvin Klein and Tommy Hilfiger brands [17] - Innovations in Calvin Klein's underwear and denim categories led to a 14% and 19% increase in sales respectively [11][60] - The company reaffirmed its earnings guidance despite tariff rates nearly doubling, with 70% of its business being international [18][68] Business Line Data and Key Metrics Changes - Calvin Klein accounts for approximately 50% of the business, with Tommy Hilfiger making up the other half [3] - Significant growth was noted in the direct-to-consumer (D2C) channel, with sequential improvements in performance [23][31] - The company is focusing on high-quality growth in wholesale, with order books showing low single-digit growth for the upcoming spring season [22] Market Data and Key Metrics Changes - The European market remains the strongest for the company, with a path to high single-digit growth anticipated [21] - In APAC, particularly China, the company saw significant growth during major consumer events, ranking in the top five international brands on Tmall [40][41] - The company opened a flagship store in Harajuku, Japan, which generated significant consumer interest and sales across all channels [44][48] Company Strategy and Development Direction - The company aims to leverage the brand power of Calvin Klein and Tommy Hilfiger to create value, focusing on cultural relevance and consumer engagement [5][6] - The PVH Plus strategy emphasizes stronger product offerings and disciplined marketplace execution to drive growth [27][70] - The company is centralizing its global product creation to improve efficiency and margins, with expectations of significant improvements in the second half of the year [50][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain tariff environment while maintaining strong brand relevance [26][68] - The company anticipates that brand strength will become increasingly important in a competitive landscape [30] - Management is optimistic about achieving margin expansion through improved consumer offerings and cost efficiency measures [70][72] Other Important Information - The company is focusing on building a strong consumer base by enhancing product storytelling and engagement strategies [34][35] - The management highlighted the importance of forward-looking planning and execution to ensure successful product launches and market presence [60][62] Q&A Session Summary Question: What gives confidence in the improvement trend in Europe? - Management noted strong brand positioning and growth in wholesale order books as indicators of improvement [22] Question: Expectations for the North American environment in 2025? - Management acknowledged uncertainty but expressed confidence in the strength of their brands and consumer response [26] Question: How is the competitive environment expected to change? - Management believes brand strength and relevance will be crucial for gaining market share [30] Question: What changes are expected in DTC performance? - Management reported sequential improvements in DTC performance and emphasized the importance of product storytelling [31][34] Question: How is the company addressing tariff impacts? - Management is working on mitigation strategies and remains focused on improving the consumer offering [66][70] Question: What is the outlook for operating margins? - Management is confident in achieving margin expansion through disciplined execution of the PVH Plus plan [70][72]

Core Insights - Ralph Lauren Corporation (RL) and PVH Corporation (PVH) are significant players in the Textile-Apparel industry, each with unique strategies and brand identities [1][2] - Both companies are adapting to evolving global consumer demands through digital innovation, supply chain agility, and direct-to-consumer expansion [2][3] Ralph Lauren (RL) Overview - Ralph Lauren is focusing on brand elevation, geographic diversification, and personalized promotions to support growth and cost management [4][5] - The company anticipates low-single-digit revenue growth in constant currency for fiscal 2026, with stronger momentum expected in the first half [6] - Gross margin is projected to remain flat, with AUR growth and lower cotton costs offsetting headwinds from higher tariffs [7] - RL's fiscal 2026 sales and EPS are expected to grow by 3.5% and 10.9% year-over-year, respectively [13] PVH Overview - PVH holds a dominant position in the premium and lifestyle apparel industry, with a diversified business model that includes direct-to-consumer, wholesale, and licensing [8][9] - The company is advancing its PVH+ Plan, focusing on brand elevation, digital acceleration, and operational efficiency, but faces macro pressures and shipment delays [10][12] - PVH's fiscal 2025 sales are projected to grow by 1.4%, while EPS is expected to decline by 5.9% [16] Stock Performance and Valuation - RL is trading at a forward price-to-earnings multiple of 18.65X, significantly higher than the industry average of 11.22X, while PVH trades at a multiple of 5.55 [18] - Ralph Lauren's stock has gained 18.2% in the past three months, outperforming PVH and the broader industry [21] - Despite PVH's strong brand portfolio, its discounted valuation may reflect limited near-term visibility amid ongoing macroeconomic headwinds [19] Conclusion - RL is positioned as a stronger contender in 2025 due to consistent strategic execution, strong brand equity, and a promising financial outlook [22] - For investors seeking stability and consistent growth, RL presents a compelling investment opportunity [25]