Bill McColl
2 min read
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PVH warned that new U.S. tariffs will hurt 2025 profit.
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The owner of the Calvin Klein and Tommy Hilfiger brands lowered its full-year profit outlook.
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PVH reported better-than-anticipated first-quarter earnings and revenue on higher sales in the Americas and Europe, Middle East, and Africa.
Shares of PVH (PVH) sank 17% Thursday, a day after the apparel maker warned full-year profit will be dragged down by new U.S. tariffs.
The company behind the Calvin Klein and Tommy Hilfiger brands reported it now sees 2025 adjusted earnings per share (EPS) of $10.75 to $11.00, down from its earlier outlook of $12.40 to $12.75. It explained that the guidance "reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $65 million unmitigated impact to full year 2025 EBIT, or approximately $1.05 per share." It added the effects would be partially offset by "planned mitigation actions" in the second half of the year.
CFO Zac Coughlin said PVH was "decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business."
The news offset better-than-expected first-quarter results, boosted by demand in the Americas and Europe, Middle East, and Africa (EMEA). The company posted adjusted EPS of $2.30, with revenue rising 2% year-over-year to $1.98 billion. Both exceeded Visible Alpha forecasts.
Sales in the Americas were up 7% to $608.4 million, and 5% to $927.7 million in EMEA. However, sales tumbled 13% to $351.7 million in the Asia-Pacific region, and licensing revenue dropped 1.5% to $95.8 million.
Tommy Hilfiger sales grew 3.4% to $1.05 billion, while Calvin Klein sales were basically flat at $886.1 million. Sales of its Heritage brand fell 5% to $49.4 million.
With today's sharp declines, PVH shares have lost more than a third of their value this year.
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