PVH’s third quarter results were met with a notably negative market reaction, despite the company reporting revenue and non-GAAP earnings above Wall Street expectations. Management attributed the quarter’s performance to ongoing execution of its strategy to elevate Calvin Klein and Tommy Hilfiger, with strong digital sales in the Americas and a sequential improvement in Asia Pacific. However, CEO Stefan Larsson acknowledged operational challenges, including higher tariffs and delays in Calvin Klein’s global product transition, as key headwinds. Persistent softness in Europe and lower-than-anticipated gross margin due to tariffs and product mix also contributed to investor caution.
Is now the time to buy PVH? Find out in our full research report (it’s free for active Edge members).
PVH (PVH) Q3 CY2025 Highlights:
- Revenue: $2.29 billion vs analyst estimates of $2.28 billion (1.7% year-on-year growth, 0.5% beat)
- Adjusted EPS: $2.83 vs analyst estimates of $2.54 (11.4% beat)
- Adjusted EBITDA: $271.7 million vs analyst estimates of $252.3 million (11.8% margin, 7.7% beat)
- Management slightly raised its full-year Adjusted EPS guidance to $10.93 at the midpoint
- Operating Margin: 7.9%, in line with the same quarter last year
- Constant Currency Revenue was flat year on year (-5.9% in the same quarter last year)
- Market Capitalization: $3.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From PVH’s Q3 Earnings Call
- Robert Drbul (BTIG) asked for details on geographic dynamics. CEO Stefan Larsson explained that Europe faced muted demand and internal product transitions, while Americas growth was led by e-commerce and Asia Pacific outperformed with direct-to-consumer gains.
- Jay Sole (UBS) questioned the impact of stepped-up marketing and inventory control. Larsson described targeted campaigns in core categories driving double-digit growth, and CFO Zac Coughlin emphasized inventory discipline would help sustain strong free cash flow into next year.
- Michael Binetti (Evercore) inquired about progress on the Calvin Klein product transition and potential margin recapture. Larsson assured that operational and delivery improvements are on track for spring, while Coughlin detailed gross margin drivers and expected sequential improvement.
- Dana Telsey (TAG Advisors) sought more color on Black Friday performance and regional consumer trends. Larsson noted strong Gen-Z engagement in stores and a solid start to the holiday season across both North America and Europe.
- Matthew Boss (JPMorgan) asked about underlying Calvin Klein brand improvement and cost savings. Larsson highlighted new customer acquisition via e-commerce and enhanced loyalty initiatives, while Coughlin confirmed that SG&A efficiencies are exceeding initial targets.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of margin recovery as tariff mitigation and cost-saving efforts take effect, (2) sustained digital sales momentum and consumer engagement in key regions like Asia Pacific, and (3) tangible improvements in European performance following operational transitions and product launches. We will also watch for updates on permanent CFO appointment and execution of new marketing strategies.
PVH currently trades at $76.13, down from $87.55 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
The Best Stocks for High-Quality Investors
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.