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] - Q3 direct-to-consumer revenue was down 1% in constant currency, partially offset by 1% growth in wholesale revenue [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 [37] - Gross margin was 56.3%, a decrease of 210 basis points compared to last year, primarily due to tariffs and product shipment delays [34][35] Business Line Data and Key Metrics Changes - Calvin Klein and Tommy Hilfiger brands showed strong performance in underwear and denim, with double-digit growth in specific product lines [9][10] - Tommy Hilfiger revenues were up 1% as reported and down 2% in constant currency, while Calvin Klein revenues were up 2% as reported and flat in constant currency [33] - Direct-to-consumer revenue in Asia Pacific grew mid-single digits in constant currency, with notable improvements in China, Japan, and Australia [19][21] Market Data and Key Metrics Changes - In Europe, revenues declined low single digits in constant currency, with D2C down mid-single digits [7][15] - The Americas saw overall revenue growth of 2%, driven by wholesale growth, while D2C declined low single digits [18][31] - Asia Pacific delivered flat revenue in constant currency, marking another quarter of sequential improvement [19][32] Company Strategy and Development Direction - The company is focused on building Calvin Klein and Tommy Hilfiger into desirable lifestyle brands through innovation and marketing [6][25] - The PVH Plus Plan aims to leverage the iconic global power of both brands while simplifying the operating model and achieving cost savings [3][6] - Investments in marketing and product innovation are prioritized to enhance consumer engagement and brand desirability [6][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uneven global consumer backdrop and the impact of tariffs in North America but expressed confidence in brand execution [5][29] - The company is reaffirming its full-year constant currency revenue and operating margin guidance, narrowing the reported revenue and EPS outlook to the high end of previous ranges [5][40] - Management highlighted the importance of the upcoming holiday season and the positive start to Black Friday as indicators for future performance [8][49] Other Important Information - The company welcomed a new Chief Supply Chain Officer and announced the departure of the CFO, with an interim CFO appointed [23][24] - The licensing business saw revenues lower compared to last year due to the transition of women's North America wholesale categories [22] 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 [48][49] Question: Can you discuss the impact of increased marketing spending? - Management emphasized disciplined marketing investments that connect with key growth categories, resulting in double-digit growth in underwear and denim [56] Question: What is the outlook for operating cash flow and working capital? - Management expressed confidence in maintaining strong free cash flow and managing inventory effectively into 2026 [60] Question: Can you provide insights on the Calvin Klein product design consolidation process? - Management confirmed that they are on track with product capability improvements and expect margin recapture in Spring 2026 [65][66] Question: How did the weather in Europe impact sales in Q4? - Management indicated that improved weather conditions in Europe positively influenced sales of cold-weather categories [75]

Core Insights - Calvin Klein Inc. launches a new denim campaign featuring Jung Kook from BTS, highlighting a renewed partnership with bold styles [1][2][4] Campaign Overview - The campaign emphasizes movement and performance, showcasing Jung Kook's stage presence and energy [2] - Shot in New York City, the campaign features signature Calvin Klein denim and seasonal staples, capturing an urban cool aesthetic [3] Product Highlights - The new denim collection includes the CK Emblem print, Darted Carpenter Jean, Barrel Jean, and refreshed 90s Straight Jean, all designed with a '90s edge [5] - The collection aims to provide versatile styling options while maintaining a sophisticated edge [5] Marketing Strategy - The campaign content will be rolled out on Calvin Klein's social media channels starting October 28 [6] - The latest denim styles are now available for purchase on calvinklein.com [6] Company Background - Calvin Klein is a leading global fashion lifestyle brand with a history of bold ideals, founded in 1968 [7] - The brand's global retail sales were approximately $9 billion in 2024, indicating strong market presence [8] Parent Company Information - PVH Corp. is one of the largest fashion companies globally, overseeing Calvin Klein and TOMMY HILFIGER [10] - PVH has been focused on growing Calvin Klein's worldwide relevance and long-term growth since its acquisition in 2003 [9]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 2% above guidance, with non-GAAP EPS also exceeding expectations [6][35] - Total direct-to-consumer revenue declined approximately 3%, while e-commerce revenue grew by 3% [6][39] - Gross margin decreased to 58.6%, down 280 basis points compared to the previous year [40][41] - EBIT for the quarter was $160 million, with an operating margin of 8.1% [41] Business Line Data and Key Metrics Changes - Calvin Klein's underwear and jeans categories saw a 25% increase in sales due to innovative product launches [9][60] - Tommy Hilfiger experienced a 3% revenue increase, driven by growth in EMEA and Americas [39] - Wholesale revenue increased by mid-single digits, benefiting from earlier shipments and the relaunch of Calvin Klein women's sportswear [6][15] Market Data and Key Metrics Changes - EMEA revenue grew by 4% in constant currency, with mid-single digit growth in wholesale [37] - Americas revenue increased by 7%, driven by high teens growth in wholesale [37] - Asia Pacific revenues declined by low teens on a reported basis, attributed to weaker consumer confidence [17][38] Company Strategy and Development Direction - The company is focused on executing the PVH Plus plan to strengthen brand performance and consumer engagement [6][33] - Plans to enhance product innovation and marketing efforts, particularly in Calvin Klein's underwear and denim categories [28][29] - The company is taking back licenses for Calvin Klein sportswear and jeans to improve brand control and execution [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment, with weakened consumer sentiment and increased promotional levels [22][47] - The company remains committed to long-term growth in China despite current challenges [23] - Full-year revenue guidance is reaffirmed as flat to slightly up, but EPS guidance has been adjusted down due to macro pressures [27][49] Other Important Information - The company returned over $550 million to shareholders through share repurchases [36] - Inventory levels increased by 19% compared to the previous year, primarily due to strategic investments in core product categories [42] Q&A Session Summary Question: What gives confidence that both brands still have good momentum with consumers? - Management highlighted strong product innovation and marketing efforts that have driven significant growth in key categories despite macro challenges [58][60] Question: Can you provide details on the cost-out efforts and their timing? - Management discussed ongoing operational improvements and cost-saving initiatives that are expected to deliver significant benefits in the second half of the year [66][75] Question: How are tariffs impacting the business and what mitigation strategies are in place? - The company identified a $65 million unmitigated impact from tariffs and is working on optimizing sourcing and production costs to mitigate this effect [78][81]