PVH Corp.

Q2 revenue decreased 3% reported and 3% in constant currency. Operating margin was 11.1%, EPS was $3.70, and gross margin was 63%, up 35 basis points year over year. Tariff refunds contributed $107 million, about 510 basis points to gross margin, about 510 basis points to operating margin, and approximately $1.80 to EPS. Excluding tariff refunds, EBIT was $126 million and operating margin was 6%; EPS was $2.52 last year. Full-year guidance was reaffirmed for reported revenue of approximately flat and constant currency revenue slightly down, operating margin of 8.8%, and EPS of $11.80 to $12.10. For Q3, the company guided to revenue down low-single-digits, gross margin up about 100 bps, operating margin around 7.5%, and EPS of $2.50 to $2.65.

Stefan Larsson emphasized that PVH is making meaningful progress on the PVH+ plan, with better product, stronger marketing, and improved consumer engagement translating into stronger D2C and e-commerce performance. He repeatedly pointed to the strength of Calvin Klein and Tommy Hilfiger campaigns, citing high engagement and traffic, and said the company is seeing early evidence that its investments are improving marketing ROI. His tone was optimistic but measured, stressing that there is still more work to do, especially in Europe, while saying the company is starting Q3 well.

Melissa Stone said PVH met or exceeded guidance across key financial metrics, with revenue down 3%, operating margin at 11.1%, and EPS at $3.70, supported by tariff refunds of $107 million. She noted gross margin was 63%, up 35 bps, and even excluding tariff refunds gross margin improved about 20 bps on lower product costs, favorable FX, and favorable channel mix, partially offset by promotion in EMEA and tariff costs. For the full year, she reaffirmed gross margin and SG&A each up about 100 bps, capex of about $250 million, and share repurchases of at least $300 million, while noting net interest expense is now expected to be about $70 million.

Analysts focused on marketing ROI, Europe weakness and spring orders, the licensing transition, and whether tariff refunds might be used to lower prices in the U.S. Management said marketing is already showing up in higher traffic, conversion, and social engagement, and that campaigns like Calvin’s Tate McRae and Sadie Sink activations and Tommy’s Travis Kelce campaign are driving measurable consumer response. On Europe, Stefan said wholesale remains cautious, but PVH is working more closely with accounts and leaning harder into replenishment and key franchises. On tariffs, Melissa said the full-year guidance already embeds some flexibility for promotional support and tariff volatility, and Stefan said cost discipline should drive meaningful EBIT margin expansion in 2027.