PVH Corp. Q4 FY2025 earnings call

• Stefan thanked teams for strong fourth quarter and year finish. • Exceeded guidance in fourth quarter with revenue, operating profit and EPS. • Full year delivered on financial guidance, returned to revenue growth. • Simplified operating model, generated cost savings, strengthened supply chain. • Started 2026 with positive momentum, higher spring season sell-through. • For Calvin Klein, strengthened product capabilities, increased marketing spend. • For Tommy Hilfiger, took iconic DNA through cultural moments, launched partnerships. • Regional performance updates: Europe, Americas, Asia Pacific. • Progress through PVH+ Plan journey, built strong brand leadership team, consumer research shows strong brand recognition and engagement. • Actions for 2026: Calvin Klein capitalizing on Love Story effect, Tommy doubling down on core product categories and partnerships.

In the fourth quarter, PVH exceeded guidance across revenue, operating profit and EPS. Total revenue was up mid-single digits reported, flat in constant currency. Gross margin improved sequentially across regions. For full year, delivered on financial guidance, returned to revenue growth, non-GAAP operating margin was 8.8% including tariffs, 9.6% excluding. Calvin Klein: in 2025 drove strong brand relevance in product and marketing, reinvented underwear franchises, grew fashion denim, opened flagship stores. Fourth quarter leveraged consumer moments. Tommy Hilfiger: took iconic DNA through cultural moments, launched partnerships, improved e-commerce, opened stores, drove growth in cable knit sweaters. Regional performance: Europe full year declined 1% constant currency, fourth quarter revenue down low single digits. Americas full year mid-single-digit growth driven by wholesale and e-commerce, fourth quarter revenue up 4% driven by wholesale and digital. Asia Pacific full year revenue declined mid-single digits constant currency, but sequential improvements, fourth quarter excluding Lunar New Year shift returned to growth.

• Fiscal 2026 expected to grow total revenue slightly reported, flat to up slightly constant currency, with planned D2C growth. • Non-GAAP operating margins to hold steady at 8.8% or 11% excluding tariff impact. • Intend to return at least $300 million to shareholders. • 2026 overall reported revenue projected up slightly vs 2025, flat to up slightly constant currency. • Operating margin expected ~8.8%, in line with 2025. • Outlook assumes 15% tariff rate on US goods from Feb 24, expects ~$195 million gross tariff cost. • Regionally, EMEA expected gradual top line improvement, Americas expected modest D2C growth and e-commerce growth, APAC expected low single-digit constant currency growth led by D2C. • First quarter projected reported revenue slightly up vs 2025, decreased low single digits constant currency, with D2C growth offset by lower wholesale.

• Uncertain macroeconomic environment. • Geopolitical dynamics, including conflict in the Middle East and evolving global trade policies. • Impact of tariffs, significant uncertainty around their full impact. • Choppy consumer macro environment and wholesalers remaining cautious.

Q: Robert Drbul asked about leveraging consumer and brand health across PVH plan.

A: Stefan said extensive consumer research shows strong standing with Gen Z and Millennial, target these consumers, deploy knowledge through social, e-commerce, expand category strength from strong categories to top 5, drive 360 consumer engagement.

Q: Michael Binetti asked about EBIT margins and Americas revenues.

A: Stefan said timing shifts in wholesale, Melissa said there are moving parts, including tariffs, marketing investment, FX, progressive year-over-year improvement in operating margins.

Q: Jay Sole asked about learnings from Love Story.

A: Stefan said Love Story was a big hit, couldn't anticipate magnitude, learnings include going back to brand DNA, shows brand power, interest spans generations, helps shape American fashion.

Q: Brooke Roach asked about path to stronger sales momentum in Europe.

A: Stefan said spring product season up vs last year, forward-looking wholesale order book for fall up low single digits, build D2C momentum with increased marketing investments.

Q: Dana Telsey asked about marketing spend and newness.

A: Stefan said for Tommy, Travis Kelsey as ambassador, build out partnerships like Cadillac Formula One and Liverpool Football Club, for Calvin, build out newness and innovation in categories through campaigns, drive 360 engagement.

Q: Tom Nikic asked about D2C growth expectations.

A: Stefan said pricing power and tariff mitigation, Melissa said planning D2C up low single digits in 2026 across brands and regions