The parent company of Calvin Klein and Tommy Hilfiger nudged up its full-year revenue forecast as it plans to break the internet again with more blockbuster campaigns after the success of its Bad Bunny ad.
PVH Corp. now expects fiscal 2025 revenue to increase slightly by low single digits compared to flat to increase slightly previously, while adjusted profits per share for this year are still expected to come in at $10.75 to $11, the fashion company said Tuesday.
Its stock price rose more than 4 percent in after-hours trading following the release of second-quarter earnings, having closed up 1.09 percent at $82.49. The stock is down 22 percent in the year to date.
“In terms of the outlook, it’s continuing this momentum that we created in Calvin and Tommy around the innovation of iconic products, the cut-through campaigns and cut-through talent and then stronger and stronger marketplace executions,” said Stefan Larsson, chief executive officer, in an interview with WWD, teasing what was in the works.
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“Coming into the fall, both Calvin and Tommy are geared up to keep the momentum from Q2,” he continued. “We are about to launch what I believe is the strongest fall campaign from Calvin so far. In women’s underwear, we are doing the equivalent of what we did with Bad Bunny.”
That means building on the product innovation around men’s underwear and bringing that to women’s underwear, with a campaign led by “one of the biggest music stars in the world” to be released shortly.
For the second quarter, revenue came in at $2.17 billion, compared with Wall Street estimates of $2.12 billion.
Adjusted earnings per share came in at $2.52, compared to $3.01 in the prior-year period, but topping Wall Street estimates of $2.01.
Calvin Klein was up 5 percent, driven by sales of denim and underwear. On the back of the aforementioned Bad Bunny campaign, sales of Cotton Stretch styles grew 14 percent globally, on top of 25 percent growth in the first quarter.
Over at Tommy Hilfiger, revenue increased 4 percent compared to the prior-year period, boosted in part by the brand’s partnership with the “F1” movie, starring Brad Pitt and Damson Idris.
At the same time, Tommy Hilfiger and Cadillac Formula 1 Team forged a multiyear partnership setting the fashion brand up as the team’s official apparel partner. On Tuesday, Cadillac named Sergio Pérez and Valtteri Bottas as its drivers in the sport next season.
“We’re well underway to drive both brands back to growth for 2025 full year,” said Larsson.
Europe, Middle East and Africa revenue increased 3 percent, Americas rose 11 percent and Asia-Pacific decreased 1 percent, with PVH stating that the consumer environment in China was challenging.
Licensing revenue decreased 3 percent compared to the prior-year period due to the transition of certain previously licensed women’s product categories in-house.
As previously reported, G-III hit PVH with a $250 million breach of contract lawsuit in June after it was denied three-year extensions on its women’s suit licenses for the Tommy Hilfiger and Calvin Klein brands. In July, PVH filed a countersuit, alleging that G-III “refused to align” with PVH’s new strategic plan.
In terms of tariffs, PVH reaffirmed its full year outlook for operating margins at 8.5 percent, down from 10 percent last year.
