PVH Corp. raises outlook after posting quarterly earnings beat

PVH Corp. boosted its forecast for the current year following stronger sales in the second quarter on celebrity partnerships and entertainment deals. 

The owner of the Calvin Klein and Tommy Hilfiger apparel brands now sees revenue increasing in a range of up “slightly” to a rise in the low-single digits. Previously, the company projected revenue in a range of flat to slightly increasing. 

New York-based PVH also reaffirmed its outlook for adjusted earnings per share for the year, while second-quarter earnings outpaced expectations. 

The apparel company is working to bolster its brands’ popularity through marketing efforts including Calvin Klein’s partnership with Bad Bunny. Tommy Hilfiger has collaborations with the F1 racing movie and US SailGP team. 

PVH’s stock value has declined more than 20% this year following a string of quarterly revenue declines, adding urgency to the company’s turnaround efforts. The shares rose 4% at 4:16 p.m. in post-market trading in New York. 

Calvin Klein brand revenue for the quarter ended Aug. 3 rose 5% from a year earlier to $980 million, surpassing estimates. Tommy Hilfiger revenue climbed 4% to $1.1 billion for the period — also better than expected. 

Sales growth was strongest in the Americas region, surging 11%. In the region that includes Europe, PVH’s most important market, sales rose 3%. Asia Pacific revenue fell 1%, with PVH citing “a challenging consumer environment” in China and the region. 

PVH now sees a $70 million tariff impact on earnings, excluding interest and taxes and before mitigation efforts, for the current fiscal year, up from its previous view of a $65 million hit. The company expects to partially offset this amount with tariff relief strategies, primarily in the second half of the year.