PVH — the company that owns Tommy Hilfiger and Calvin Klein — said revenue decreased 1% year-on-year on a constant currency basis to $2.29 billion in the third quarter of 2025, ended November 2, in line with guidance.
Gross margin decreased from 58.4% in Q3 last year to 56.3% in 2025, impacted by US tariffs, increased promotions, higher freight costs and the transition of some previously licensed women’s categories in-house. EBIT declined from $183 million in the same period last year to $181 million this year.
“We are fully geared up to deliver the rest of the holiday season and the full year as we continue to — step by step and season by season — build Calvin Klein and Tommy Hilfiger into their full potential,” said CEO Stefan Larsson on the earnings call with investors. “We remain relentlessly focused on the levers within our control to keep leaning into our iconic brands, and through our PVH Plus plan, continue to strengthen our product marketing and marketplace experience in a systematic and repeatable way.”
The company confirmed its full-year outlook of a flat to slight increase in revenue. In Q4, revenue is expected to decrease slightly on a constant currency basis. “The impact of tariffs will be felt much more heavily in the fourth quarter than the third quarter,” said CFO Zac Coughlin, who is departing the company at the end of the calendar year. “We have begun to mitigate some of these costs through strategic actions this year, and expect to fully mitigate the impact over time, but for this year, some we will need to absorb the net impact of the tariffs and these mitigation actions are embedded within our guidance.”
At Tommy Hilfiger, revenues decreased 2%, while Calvin Klein remained flat on a constant currency basis. PVH has improved its SG&A (selling, general and administrative) efficiencies, and said it is investing those savings into marketing to drive growth.
In EMEA (Europe, the Middle East and Africa), revenues fell 2% year-on-year, due to declines in both direct-to-consumer (DTC) and wholesale. Revenue in the Americas increased 2%, with growth in wholesale partially offset by a decline in DTC. Asia-Pacific was flat in the quarter.
“[We’re now] coming into the fourth quarter and the start of the holiday season, and in Europe, Black Friday and Thanksgiving week is as important an indicator for the holidays as in the US. We had a planned start in Europe, the consumer came back for the start of the holidays,” said Coughlin. Larsson added that in New York, footfall returned at shopping centres and that both brands have seen strong interest across a range of consumer bases, generations, and across different income levels.