PVH reports significant profit decline despite revenue increase

US fashion group PVH increased its revenue in the 2025/26 financial year. However, profit fell significantly due to adverse conditions and negative special effects. The results, published on Tuesday by the parent company of Calvin Klein and Tommy Hilfiger, were above market expectations.

Tommy Hilfiger and Calvin Klein see revenue increase

In the most recent financial year, which ended on February 1, group revenue reached 8.95 billion dollars. This was an increase of 3.4 percent compared to the previous year. Adjusted for currency fluctuations, revenue rose by 0.5 percent.

Both core brands contributed to the growth. Tommy Hilfiger's revenue rose by 3.9 percent to 4.77 billion dollars, or +0.5 percent on a currency-adjusted basis. Calvin Klein posted an increase of 2.8 percent to 3.96 billion dollars, also +0.5 percent on a currency-adjusted basis.

Higher tariffs and write-downs impact earnings

The group's gross margin fell from 59.4 to 57.5 percent year-over-year. The company attributed this to higher import tariffs in the US, increased freight costs and more extensive discounts. PVH also had to make significant write-downs, causing earnings before interest and taxes (EBIT) to fall by 70 percent to 230.6 million dollars from 772.3 million dollars in the previous year. Net profit plummeted from 598.5 million to 25.3 million dollars.

Adjusted for special items, net income decreased by almost 17 percent to 553.2 million dollars. Adjusted earnings per share shrank from 11.74 to 11.40 dollars. This figure was significantly above the company's forecast of 10.85 to 11.00 dollars, largely due to surprisingly strong fourth-quarter results.

Management forecasts further progress

For the current 2026/27 financial year, management anticipates further modest progress despite ongoing difficult market conditions. Current forecasts suggest a slight increase in revenue. Adjusted earnings per share are expected to rise to between 11.80 and 12.10 dollars.

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