PVH Corp. Surpasses Expectations with Strong Q1 2025 Performance
PVH Corp., the parent company of iconic fashion brands Calvin Klein and Tommy Hilfiger, has reported a robust first quarter 2025 performance, exceeding expectations and driving revenue growth.
According to Stefan Larsson, Chief Executive Officer, PVH delivered on its plan, driven by disciplined execution of the PVH+ Plan, which resulted in a 2% increase in revenue above guidance. The company also reported stronger-than-expected non-GAAP earnings per share (EPS), surpassing guidance.
Larsson highlighted the importance of staying focused and expanding execution during challenging macroeconomic times. He emphasized that the company's actions were within its control, and he would share concrete examples of what drove PVH's performance in Q1.
One notable example was the success of Calvin Klein's innovative product franchise, Icon Cotton Stretch underwear for men. The viral cut-through campaign featuring Bad Bunny drove a 25% increase in combined sales of Icon Cotton Stretch and Cotton Stretch styles globally. This full-funnel approach aligned all aspects of the PVH+ Plan, from brand, product, and marketing to marketplace execution.
Another key area of growth was Calvin Klein's denim business, which saw a 14% increase in Q1 due to innovation in fashion denim offerings. The company expanded fits, washes, and designs to be hyper-relevant, demonstrating its ability to stay ahead of the curve in terms of product relevance.
Additionally, PVH reported mid-single-digit growth in wholesale revenue, driven by earlier shipments as well as the relaunch of Calvin Klein women's sportswear and jeans businesses in North America. E-commerce sales also saw a 3% increase, despite a decline in total direct-to-consumer revenue of approximately 3%.
The company remains on track to drive revenue growth for the full year, with Larsson expressing confidence in its ability to navigate challenging macroeconomic conditions. He noted that PVH's focus is on strengthening and expanding the impact of its own actions, rather than being affected by external factors.
As the company looks to the back half of the year, it plans to drive specific actions within its control to move the needle. These include continuing to sharpen its focus on consumer needs, expanding execution, and staying ahead of the curve in terms of product relevance.
