Despite losses: PVH Corp exceeds expectations in Q1
A Tommy Hilfiger store Image: Tommy Hilfiger The US clothing group PVH Corp (PVH Corporation) exceeded market expectations with a surprising increase in sales in the first quarter of the 2025/26 financial year. However, in light of the recent tariff increases on imports into the US, the parent company of Calvin Klein and Tommy Hilfiger lowered its profit forecast for the current year. Group achieves surprising sales increase In the first quarter, which ended on May 4, group sales amounted to around 1.98 billion dollars, according to a business report published on Wednesday evening. This corresponded to an increase of two percent compared to the same period of the previous year. Adjusted for exchange rate changes, revenue also grew by two percent. Analysts had previously expected a slight decline in sales. The group owed the unexpected increase to a three percent rise (three percent currency adjusted) to 1.05 billion dollars at Tommy Hilfiger, which was attributable to sales growth in the Americas and the EMEA region, which includes Europe, the Middle East and Africa. Calvin Klein's revenue, on the other hand, was slightly below the corresponding prior-year level at 886.1 million dollars (a 0.1 percent decrease). Currency adjusted, they remained practically constant. The Heritage Brands segment, which manages the group's smaller brands, recorded a decline of just under five percent to 49.4 million dollars. Negative one-off effects push PVH Corp into the red Not least due to higher discounts and increased freight costs, the group's gross margin fell from 61.4 to 58.6 percent. In addition, impairments and negative currency effects weighed on earnings. The company had to report a net loss of 44.8 million dollars, after having achieved a profit of 151.4 million dollars in the first quarter of the previous year. Adjusted for special items, net profit fell by 17 percent to 118.6 million dollars, but still exceeded management's forecasts. Management lowers its profit forecast for the current year Chief financial officer Zac Coughlin described the current quarterly figures as 'solid', but also referred to the difficult economic climate. 'We are operating in an extremely dynamic and uncertain macroeconomic environment that is affecting our industry, our customers and our business results,' he stressed. In view of recent developments and the expected impact of US customs policy, the group revised its profit target for the current year downwards. The forecast for earnings per share, adjusted for special items, which had previously been between 12.40 and 12.75 dollars, was lowered to between 10.75 and 11.00 dollars. Revenue expectations, on the other hand, remained unchanged. The company therefore continues to expect revenue to remain at least constant or even increase slightly compared to the previous year. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
The US clothing group PVH Corp (PVH Corporation) exceeded market expectations with a surprising increase in sales in the first quarter of the 2025/26 financial year. However, in light of the recent tariff increases on imports into the US, the parent company of Calvin Klein and Tommy Hilfiger lowered its profit forecast for the current year.
Group achieves surprising sales increase
In the first quarter, which ended on May 4, group sales amounted to around 1.98 billion dollars, according to a business report published on Wednesday evening. This corresponded to an increase of two percent compared to the same period of the previous year. Adjusted for exchange rate changes, revenue also grew by two percent. Analysts had previously expected a slight decline in sales.
The group owed the unexpected increase to a three percent rise (three percent currency adjusted) to 1.05 billion dollars at Tommy Hilfiger, which was attributable to sales growth in the Americas and the EMEA region, which includes Europe, the Middle East and Africa.
Calvin Klein's revenue, on the other hand, was slightly below the corresponding prior-year level at 886.1 million dollars (a 0.1 percent decrease). Currency adjusted, they remained practically constant. The Heritage Brands segment, which manages the group's smaller brands, recorded a decline of just under five percent to 49.4 million dollars.
Negative one-off effects push PVH Corp into the red
Not least due to higher discounts and increased freight costs, the group's gross margin fell from 61.4 to 58.6 percent. In addition, impairments and negative currency effects weighed on earnings.
The company had to report a net loss of 44.8 million dollars, after having achieved a profit of 151.4 million dollars in the first quarter of the previous year. Adjusted for special items, net profit fell by 17 percent to 118.6 million dollars, but still exceeded management's forecasts.
Management lowers its profit forecast for the current year
Chief financial officer Zac Coughlin described the current quarterly figures as 'solid', but also referred to the difficult economic climate. 'We are operating in an extremely dynamic and uncertain macroeconomic environment that is affecting our industry, our customers and our business results,' he stressed.
In view of recent developments and the expected impact of US customs policy, the group revised its profit target for the current year downwards. The forecast for earnings per share, adjusted for special items, which had previously been between 12.40 and 12.75 dollars, was lowered to between 10.75 and 11.00 dollars.
Revenue expectations, on the other hand, remained unchanged. The company therefore continues to expect revenue to remain at least constant or even increase slightly compared to the previous year.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
