PVH Corp: A Year of Resilience and Growth Amidst Global Challenges
PVH Corp, the parent company of iconic fashion brands Calvin Klein and Tommy Hilfiger, has reported a strong first quarter for 2027. Despite the challenging consumer and macroeconomic environment in EMEA (Europe, Middle East, and Africa), driven by the prolonged conflict in the region, PVH delivered on all its commitments across the profit and loss statement.
During the conference call, Stefan Larsson, Chief Executive Officer of PVH Corp, emphasized that the company's hardworking teams around the world played a crucial role in achieving this success. "I want to start by thanking our teams around the world for their hard work this quarter as we build Calvin Klein and Tommy Hilfiger into their full potential," he said.
The results were impressive, with total revenue reaching $2 billion, up 2% on a reported basis and exceeding guidance. The company's direct-to-consumer business grew by 3% in constant currency across both brands, driven by e-commerce strength in all regions. This was largely due to the increased marketing spend and focus on target consumer segments, which attracted new consumers and drove online traffic.
The growth of full-hero categories in D2C (Direct-to-Consumer) was also notable, with underwear and denim for Calvin Klein, and sweaters and outerwear for Tommy Hilfiger, experiencing mid-single-digit e-commerce growth. The wholesale business saw a decline in mid-single digits due to timing effects and cautious partner positioning.
Despite these challenges, PVH Corp delivered flat gross margins compared to the previous year, reflecting improvements in all regions, excluding tariffs. The operating margin for Q1 came in at 6.5%, at the high end of guidance, including the impact of tariffs.
The company also made significant investments in enhancing the shopping experience across digital channels, shop-in-shops, and store concepts. This included completing over 140 refurbishments and new store openings combined, which further solidified PVH's position as a leader in the fashion industry.
Furthermore, PVH Corp continued to strengthen its supply chain by maintaining good inventory levels, down 5% compared to last year. The company also made progress in becoming more data and demand-driven through its enterprise data platform, partnerships with OpenAI and Salesforce, and other capabilities that connect consumer insights across the value chain.
Overall, PVH Corp's Q1 results demonstrate resilience and growth amidst a challenging global environment. With continued investments in its brands, supply chain, and data-driven strategies, PVH is poised to build on this momentum and drive success in the coming quarters."
