PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, reported a 2% increase in third-quarter revenue, reaching $2.294 billion. The growth was fueled by strong performances from both of its iconic brands.
Tommy Hilfiger saw a 1% revenue rise, while Calvin Klein grew by 2%. Despite these positive numbers, both brands experienced slight declines when measured in constant currency, reflecting the impact of global economic trends.
Regional performance breakdown
Regionally, PVH’s business showed mixed results. In Europe, the Middle East, and Africa (EMEA), revenue grew by 4% year-over-year. However, when adjusted for currency fluctuations, EMEA revenue declined by 2%, primarily due to softer direct-to-consumer and wholesale sales.
In the Americas, PVH’s revenue increased by 2%, with wholesale contributing the majority of that growth. Meanwhile, the Asia-Pacific (APAC) region experienced a slight dip, with a 1% decrease in revenue. On a constant currency basis, APAC remained flat.
Sales channels and licensing revenue
Direct-to-consumer sales remained steady, with flat growth compared to the same period last year. Digital commerce showed a slight increase of 1%, while wholesale revenue grew by 4%, or 1% when adjusted for constant currency.
Licensing revenue, however, saw an 11% drop, largely due to the company bringing certain women’s categories in-house, moving away from external licensing agreements.
Strong brand performance and strategy
Stefan Larsson, PVH’s CEO, highlighted that the company exceeded its guidance for revenue, operating margins, and earnings per share (EPS). He attributed this success to the ongoing execution of the PVH+ Plan, which focuses on strengthening its brand presence through innovation and effective marketing.
Calvin Klein experienced growth in key categories such as underwear and fashion denim, while Tommy Hilfiger achieved success in its core lifestyle products. The Hilfiger Racing Club campaign was a key driver in promoting the brand’s iconic style.
Looking ahead, PVH has revised its full-year revenue expectations to increase in the low single digits, narrowing its forecast from a previous range of flat to low single-digit growth. The company also reiterated its expectation for flat to slightly positive constant-currency revenue for the remainder of the year.
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