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]