PVH Corp., a leading global apparel company known for its iconic brands Calvin Klein and Tommy Hilfiger, reported its first-quarter financial results for 2025, revealing mixed performance amidst continuing challenges in consumer sentiment and macroeconomic conditions. The company’s revenue reached $1.984 billion, marking a 2% increase from the same period last year and exceeding its previous guidance of flat to a 2% decline.

In terms of earnings, PVH reported a non-GAAP earnings per share of $2.30, outpacing guidance that projected EPS between $2.10 and $2.25. However, on a GAAP basis, the EPS reflected a loss of $0.88 following a $480 million impairment charge related to goodwill and intangible assets. Gross margin for the quarter was reported at 58.6%, a decline of 280 basis points compared to the previous year due to several factors including an unfavorable product mix and increased promotional activity.

The company’s performance varied across its regions. In EMEA, revenue increased by 5% year-over-year, with both wholesale and direct-to-consumer channels contributing to growth. In the Americas, revenue grew by 7%, driven primarily by wholesale performance, while direct-to-consumer sales saw a mid-single-digit decline amid lower foot traffic. Conversely, APAC faced challenges, with revenue decreasing by 13% largely due to a tough retail environment and the earlier timing of the Lunar New Year.

PVH also provided updates on its strategic initiatives. Direct-to-consumer revenue was down approximately 3%, with owned store sales declining by 5%, whereas e-commerce sales increased by 3%. Wholesale revenue rose 6% as a result of shifting shipment timings and the integration of formerly licensed brands into the wholesale channel. Overall, despite solid wholesale performance in certain areas, direct-to-consumer challenges highlight ongoing difficulties in attracting customers in retail locations.

Turning to inventory, PVH reported a 19% increase compared to the previous year, driven by a focus on core product availability and adjustments to current demand trends. The company emphasized its transition to a demand-driven supply chain and strategic adjustments to align inventory with anticipated sales growth.

Looking ahead, PVH reaffirmed its revenue guidance for the full year, expecting flat to slight increases. However, it updated its guidance for profitability, now forecasting an operating margin of approximately 8.5%, down from previous expectations of flat to slight growth. The updated earnings forecast reflects an estimated impact of $65 million from tariffs and a more promotional environment than initially anticipated.

Interest expense was reported at $17 million, with a projected increase to around $85 million for the year due to accelerated share repurchase agreements. The tax rate for the quarter stood at approximately 17%.

In summary, while PVH’s first-quarter revenue demonstrated resilience against external pressures, the company faces significant challenges that impacted profitability and overall operational performance. The strategic direction remains focused on leveraging its brand strengths through marketing campaigns and enhancing product offerings despite ongoing macroeconomic uncertainties.