PVH - Earnings call transcript Q2 2025

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Operator

Good morning, everyone, and welcome to today's PVH Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this call may be recorded, and that I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to Sheryl Freeman. Senior Vice President of Investor Relations. Please go ahead.

Sheryl Freeman

Thank you, operator. welcome PVH and everyone, morning, to Corp. the Good

and Call. call Executive transmitted permission. on today Quarter This and XXXX material. be behalf otherwise the may Conference Earnings webcast Officer. consists Financial Chief Second of will PVH being of or Leading Stefan written not Coughlin, be Chief without call rebroadcast and PVH's conference is Zac copyrighted recorded Officer; It Larsson, recorded,

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Stefan Larsson

our today. and Thank call you, everyone, morning, Sheryl, thank good joining for you and

teams Calvin lifestyle desirable deliver Hilfiger leading the towards as Let vision and in around start near-term brands world by long-term of to make commitments the in continue world PVH Klein our all one we the and to into groups our the Tommy steering thanking me on sector. build brand our our while most

quarter had the second expansion improve margins we and we profitability revenue XX% it. EPS. line X margin We XXX and quarter, gross EBIT inventory guidance inventory in year-over-year. The stronger-than-expected our different down continue with by to For significant drove with points, driven productivity to with increased chapters basis distinctly of our

and the heavily being clearance The parts impacted summer June selling by part end-of-season summer first being spring and in market. the the May full-price in second July on the and focused overall

on we mid-July peak inventory bigger clearance didn't season Brands August, period compensate fully In revenue Since coming on quarter. trends into X% slightly, revenue drove in revenue saw the on expected clearance of more for reflecting we coming revenue. rates and new clearance a newness, share came the the the wholesale basis, from total which saw driven and we Our less to to we season approach, this decided less mid-July constant actions our end-of-season end-of-season quality by the declined follow June. currency we inventory, and And market August, DXC into increasingly the down. the further as constant total when back and the our for line, taking up, new heavy an gross basis down quarter, DXC from and not proactive Instead, sales up. With some our of clearance of in shift margin deliberately of where then, currency a are away X% the yet impact the early overall we being market the trends had down May to resulted were revenue clearance in we walked we as our Heritage excluding DXC sale. low-quality top see that

ahead, are onetime a guidance for EPS EPS to remain revenue, we excluding for full the deliver EBIT non-GAAP our tax year, year. reaffirming strong we growth positioned Looking margin and the well benefit and

strong level APAC, desirability We continue consumer our the moments. quality to PVH+ win given Plan. North sustainable do X we We on engagement, growth of this proof execution. and in systematic as our after of driving you we the prudent the see, will will quarter global of drive keep disciplined in and remaining increasingly direction actions. And headwinds. towards Europe, consistency And to relentlessly our execution all through long-term on way lean while our building strong PVH+ a and execution quarter, America continues focused a into big next sales And staying of while drivers we point are in plan growth. in targeted repeatable with Plan PVH+ brand macro of clarity be consumer challenging our we

product engagement up and are talent. Fall 'XX campaigns relevant we execution for our key featuring strong mega fall best taking fuel globally fully into this hero innovation where both newness step in and able first influence is cut-through product categories with to products. have also globally, the further products transitional Tommy, For been locally in leaning both stronger we brands consumer with season providing growth into even Calvin another

quality in improvements in through products our lower continued supported supply and data be AUC. higher will and stock this chain, resulting freshness, demand-driven of All increased

remain back Lastly, to efficiencies invest progress how we and driving are focused important we making into growth, we to simplify on work.

across second and Klein. the X some on our share me Calvin executed brands we quarter how from with regions. Starting iconic let highlights X Now

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all did fashion New spring in all the the shows Fashion of made cut-through to Week, just As of York fashion it XX a the reminder, became show and show globally. we of shows top biggest

points starting a consecutive our second than The turn year, of double-digit to Calvin EBIT significant compared our last delivered and Now to together quarter up both margin, let Tommy our me XX.X% regional continues XXX Plan basis a despite of execution. region America, tougher great an North In another margin macro. be fourth the brands. non-GAAP expansion example a of EBIT quarter, PVH+ with across margin, quarter performance, to marking their more businesses

down can the have really made the the we we progress past doubled year, see on region. Over you PVH+ our execution in as

our of Our revenue earlier. while Calvin spoke teams revenue for Tommy combined, declined July growth DXC and modestly, trends the I businesses delivered high-quality to X% given

DXC, by on products, increase margin. we our a our newness in wholesale. advancing offers In This bringing and into both gross increased the hero throughout quarter driving offset product focus brands, low was across single-digit category

drive and very to key Overall, experience. the we marketing region, across our to stronger strength For channels execution. America sell-throughs with as the we closely strong strong working the category and wholesale, continue our partners to shopping product, product optimize marketplace make in consumer driving see we a we all offense response across North product consumer are continue and improvement

quality we initiative. Turning to communicated our business. continue international on execute In to our successfully sales of Europe, previously

revenue of delivered from impact and significantly overall X% down included a gross quality our it in we our euros, actions was margins. While higher X% year-over-year sales

on business in accretive X%. David growth to for we early our expect off to the position For we next be start much level continue both in sales execution of our the all we driving Europe continue inventory season profitable revenue product last the laser-focused full long European fall term, quality and where year, impact as the is composition initiatives better channels. Tommy, across the strength to build over and approximately PVH+ year. is team the Calvin In are brand our and from than Salmon to an strong

for for us the are our to buying have across drive we will we In assortment a top a wholesale, partners. stronger assortment have categories DXC core planning region. newness. time, more to growth in of driving levels direct and improved fall growth add first in sales We key wholesale with 'XX our fully have improved And that and product enabling the stock bestsellers, aligned product

full down order finalized highlighted the 'XX wholesale As forward we shows and our low season book spring sequential quarter, significant single last digits. improvement

in key highly you we forward very our that are with to close to shortly. We about continue positive for and are Europe, far very excited with performance look both wholesale more closely the share a assortment with across improved to I'm CEO experienced record, search and sharing strong we a leader the permanent announce brands. PVH very track product who to working also our feedback partners share

Pacific. Moving on to Asia

X% have we we the down consumer mid-quarter, from like saw decline resulted which constant a others a trajectory the Just change, currency. was backdrop, in sector, in especially heard China, many in in in which

This to in continued while also a the by From the in slowdown resulted region, in in growth growth including perspective, Japan saw channel X% offset wholesale revenue markets, in continue constant see including we the region stores this quarter. traffic. low and for in currency, a although single-digit declines was We Australia, and decline Korea e-commerce a declining in to drive DXC. other

execution PVH+ a strong current both continue backdrop, consumer difference. the With make we for to Calvin our and Tommy, big

with such moments GMV to XXX fueling consumer drive just into our regionally of strong as in around continue both upcoming double-digit key Kim relevant growth XX/XX, heat customer we're Stray continue for where tapping on our talent, also and we to winning shopping full quarter, in we for brands with past We're We year. Jennie such engagement the delivered brand we of last forward, beginning potential laser-focused cut-through quarter, again holidays, customer biggest Overall, Kids. mega the the delivered year. the second the as consumer brand growth And event Asia. In closing, engagement, versus strong big drive including going on plan. activations this

while sequential win brand with of And to X quarter in it and drive building win. And Asia, margin to our increasingly times In actions execution, the independently take brands, the iconic market to continuously more to our both that, the delivered improve our targeted learn consumer forward-looking drive of long-term We in growth. turn the PVH+ big said continue backdrop execution PVH+ our and into through driving our Zac, growth in the partners, strength that make show significant many brands world, and ourselves Plan will and engagement it's ability direction, Calvin I've on In we our call most brands Tommy. lifestyle Europe, I'll over improvements and in positioning are the us American high-quality we successfully of quality us we beloved orders. big financials globally to of our our and with step-by-step expansion. profitable moments. And before, for North continue through wholesale to in consistency the together the another of sales disciplined consumer strength strong desirable sustainable, the detail. teams with

Zachary Coughlin

results My are morning. based good and on comments are release. Stefan, in Thanks, press non-GAAP reconciled and our

a expansion increasingly delivered tax discussed, sales by margin all execution be top of execution share on while by deliver delivered margin disciplined quarter second world. than the gross quality planned points as brands Plan. of was per results we consumer leveraging successfully driven our backdrop, for as up due challenging financial the we operating our We exceeding tightly guidance, to continue to settlement omnichannel to basis matter. We Stefan guidance and our As line earnings X.X%, quarter expectations, versus the the Operating focused our largely XX of PVH+ iconic last our laser basis navigated the driven margin XXX on better continue of of year, to points expenses. around manage favorable

quarter move outlook to X% first currency of raising $XX track the solid business Revenue was operating negative and was on for $XX.XX down full sale including on basis. we guidance the year, an sales supply in decline the share benefit on previously our expected the to second and in for X% second wholesale than the in then remain quarter performance, our in and our were chain with EPS will to our down from I tax we results detail a revenue and $XX.XX our are impactful second as versus than quarter our improvement European our a quarter anticipated. quarter year delays half deliver shift $XX.XX X% international third this constant down to X% compared to year intimates reflecting due Following margin and timing a of reflect in from to last line reaffirming a better was to We X% quarter had less exchange Heritage regional quarter the were mentioned. quarter the guidance as shipments guidance. Starting financial in per our sequential revenue the second XXXX impact from from second decline now business plan. I businesses perspective, from in planned euros, X more a and Sales discuss to outlook. into our

currency X% particularly economic Where China and higher which conditions Australia as in in constant the in we margin decision on countries. deliver basis the Asia year. in gross sales versus over macro X quality year, business Japan basis to last the region, strategic continue to focus points our our impacted down conditions region, on the Sales also were region XXX but overall delivered Our challenging those versus a business last higher in in up was remain growth. decline strong negatively drove Korea, and in strong Pacific

Sales for reported basis. Asia on X% Pacific were down a

with low In wholesale DTC Tommy year businesses North in a Klein America, growth our Calvin X% for sales. decline combined sales last modest increased Hilfiger in and versus revenue single-digit and

Stefan inventory were newness margins. And gross by clearance North was lower the our more negatively higher significant low-quality to our in focus, May quality season the period largely and as levels. end-of-season Asia trends the in sales, but we mentioned, with perspective, improvement impacted lean brands. the in America up and nearly and relatively quarter assortment, DTC With was As down, while our direct-to-consumer overall on full sales I sales trends inventory Pacific with were focused June, this DTC margins capturing revenue instead chasing July clearance an by XXX PVH of in in clearance drive July basis of price expected in channel overall points mentioned From impacted revenue gross prior region our previously. our both in and

due the continue our constant while as They on decline significantly key businesses retail wholesale quality season reduction planned to and currency in winning revenue e-commerce from in to partners. own reflects driving remaining was Heritage a in in-season reduction on result, prior reducing we down sales region. last was to X% our remain strategic the lowering focus on down a constant revenue performance business. sites sales of our and due currency Total quality sales X% sales X% sale owned As clearance the through platforms. to drive X% our decline X% intimates in third-party a the versus wholesale in continued in on year, primarily our sales stores. In we product of a business, revenue operated wholesale, basis, Europe, the our DTC higher Europe Within overall decline and strong on overall primarily focused a revenue including in with was of basis, down

increase to margin delivered last the the due strategic to in higher margins half year. leverage up shift to quality of DTC to Approximately with as improvement higher was brands. basis the business. In prior were lower higher basis XQ, to of Turning constant year half revenues constant constant X% America, costs globally flat North Tommy a gross global a revenues more reported In America international on on due business more on the a with were quality international on was assortments. much compared our down gross in Klein another Europe the points and with to Calvin offset aligned in flat basis Tommy heavily decline our Tommy weighed North while of currency. than currency in in sales a mix Hilfiger a business was the product and scale our quarter and growth XXX product driving on business, basis, sales on X% by down growth reported significant X% basis. we and as currency down focus XX.X%, the we was

in Our year, levels. inventory was quarter to lower due XX% compared at end-of-season stock to end down last part

normalize 'XX our points expect and the support we the was as through an and of we to plans of growth 'XX. SG&A points due As cost of than leaner drive in approximately to year, inventory work is the last to of half half basis of increase in to XXX manage reduce levels modest expenses. revenue increase approximately we levels actively higher point year deleveraging basis lower into XXX a from versus of move inventory people second compared the basis revenues, basis cost the expense expenses and remainder improvement year versus realized last offset as the for prudently XX.X%, of to The and taken due to second percent partially points planned we year lower DTC comprised from on XXX and efficiencies mix the by actions an XXX have last efficiencies.

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progress will XXXX. increasingly impactful are become making early through We that

revenue of allowing completed to recently e-commerce distribution the initiatives we was Hilfiger open per the As undertaking, America transition to an and basis $X.XX of X% we earlier, business which audit XX marked the to decline. Operating the outsourced included of are last leveraging benefit combined. both capacity, from related example of types favorable our approximately in-house, Tommy share have $X.XX multi-year North to international deliver settlement us quarter. operating the EIBT quarter Calvin In to our more offset non-GAAP drove the increase margin million our strong as referenced with tax of $XXX service in prior the for I compared America year the margin and rate a points Earnings million was tax and efficiencies in than consumers. levels North total, to straight $XXX the improvement Klein e-commerce and fourth for gross to year the X.X% Hilfiger a margin expanded for quarter Tommy double-digit versus

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compared basis revenue business. intimates to due quarter including third the decline X% the decline projecting are to a a X% X% and X% constant the sale to on X% year, to of prior as to We currency reported Heritage

we to are in in continue nearly sale due of revenue communicated the revenue is a Heritage business. The are previously continued as to expected single-digit projecting are wholesale business, in of sales Europe year recent the decline decline We trends the high and constant flat from the books remaining quality projecting lower decline last quarter, to compared order currency into our XQ. a Europe. DTC largely focus in fall the including X% intimates In

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Our third at estimated tax interest rate million. $XX be to expense approximately is for is the quarter XX% and approximately projected

track on And on the the to overall start to the remain year. business year. outlook shared now at full the deliver we of moving We

our year operating we are reaffirming As and guidance. full revenue such, margin

And high Asia due single our the conditions rest previously that DTC Hilfiger week Tommy project digits year revenue up to a full on business sale Pacific, digits. intimates overall X% the currency and XXrd last to planned with market the to planning America, digits. single the outlook decline in that, including Calvin decrease up year digits year, last compared we for down previously We a are reflect euros of basis down is single up and now constant for low by through to XXXX. Within continue we are our and to to continue low North high to compared to relatively X% in single X% due digits. current single unchanged, Heritage constant businesses In the plan X% Klein decline the flat low updates Europe of combined, sales sales compared both now year. reported planning currency assumption be versus These a to in

We operating in are projected the approximately margin for to reaffirming our XXXX. will XX.X% also be year flat

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guidance the SG&A now entirely of previously. to the $XX.XX our be year full versus are fully as approximately a expect earlier. Driven the million in $XX.XX continue XXXX to $XX percentage increase now in of the I tax expected non-GAAP with $XX.XX compared that approximately as by will range to revenue the $XX to And by We million XXXX lower settlement revenue. by of DTC favorable change explained rate to for impact previously, than with explained compared improvement approximately down to a EPS in the $X.XX versus XX% is mix more expense be plan expense to projected SG&A $XX approximately mentioned XQ XX% tax tax, and we dollars Interest we by raising our previously.

year. buybacks to million we Additionally, share the of remain $XXX total committed for

to want marketplace the I up full deliver bringing profitable value operator, that consumer-facing reiterate Plan, engagement drivers our and would to our We long-term growth. And that, questions. in of with product, deliver the like together Before underlying challenging continue to growth of open to X relentlessly we questions, laser-focused remain engines to with operating it drive work drivers consumer financial we for sustainable, and the increasingly PVH+ to results even commitments macro on up environment. key we executing open the year

Operator

Instructions] [Operator

Our first question will JPMorgan. come from with Matthew Boss

Matthew Boss

margin cost elaborate of could to support over the couple you operating then, to across you the just is margin your Zac, on expansion years? brands operating seen cited would and you speak that demand you've health Europe, So and fall think current Stefan, back of could half America any And demand there on to regardless of target controllables, on that trends macro? Or planned North you if efficiencies next how great. just that in maybe I the elaborate that change the assortments mid-teens recent be relative

Stefan Larsson

Matt, the and Start your brand. for the you thank of with health questions.

coming high strengthen this So and continue we into Calvin from spring with engagement in to we fall and all-time that. both consumer are Tommy,

take Calvin's So saw that you and very response strikes I thing yesterday consumers the strong White, me that don't if when one and fall consumer launched it's And chapter campaign of really already. we know Jeremy again. their things second canceled field of Allen days where them screaming of day, and stopping time the into like all comment have should we right world saying from it thousands I'm busy the be today. them, busy hundreds

fall the start spring. powerful on campaign. high engagement in from now, new growth in very all-time you'll Every the building consumer campaign the talent of So see week

Mingyu, You Greta will Jenner, see Lee. Kendall

You will coming the more and K-Pop we'll band see in. have NewJeans, talent

and across -- they social from and products Stray lifestyle and campaign, Kids I all on our campaign Tommy will fall Kids a best with Klein is band be iconic categories. keep comments released K-Pop Please its the consumers, Tommy the cut-through saying all also So like things posting. Stray just life. equal Calvin Tommy. love wearing positive

campaigns. in reminder, York with this the back show few of And both Week to a weeks, the in to Tommy comes When very are Fashion and the through we in that top mention just Tommy, Tommy came biggest when Show. to we York consumer fall XX So past back cut the February, Fashion had globally. Fashion campaigns, in response also as season New Week it New strong want start fall I a both just

fully engagement, we Tommy. that then the impact drives was where season were good interest product. Calvin consumer and to engagement in Fall product globally for feeling 'XX the about consumer product first an So the really able

to is brands. key categories So you in the able during into will fall improvements we in been both further the lean see growth have

newness in the better composition. innovation, more is the levels, that then hero better fall, off inventory product, And driven the early season fall versus it's season products. you for combine have strong will more last with inventory -- product And product having but We year. a fall still start the fall to season days

strength forward-looking forward-looking area for the product Another spring books can now the see XXXX. already for you order increased Europe in is

driven have London, fall improvement. were 'XX and selling last in time sequential up we we we caught significant this, like So spring have the we now still spring 'XX, and

So for see down digits. the sell-in. single from fall are low if 'XX, to improvement. it work spring you digit we belief recognition 'XX, our in And product the of only And down record reflects we the single were partners high the and

price fall, we assortment, coming of a influence, we clearance, into inventory tougher selling, into better in about course, we But how more the consumer can fall. better stronger very are good composition, stepping overall, and full product less So on engagement setting with what feel based macro.

Zachary Coughlin

those SG&A accomplished And the business we I controllable think happy is control work I Matt, over cost about of our on couple Yes. the the -- the really dollars. investing element think we've of with we're how go most last years.

forward, the X expect follow to same important pillars. Looking path with we

call suppose match what continuous current to to I you we the management. spending really of performance That's trends. take actions is First hundreds small

us importantly, all made the capacity our on greatly create year we've think, That's make really we into XXX some us and profit of well. to the XXX commitments working started world. leaned that about tougher This And change, savings, I the work talked in around points in spite the second that simplify and helped I to has continue couple will working over of are to profit really that in the to ways has to as commitment to to are backdrop. change in profitability, step hold last think SG&A growth of larger invest months us to continue as changes which to it's of the Stefan the our allows macros deliver XX% helping incremental deliver basis we've

Operator

Evercore next Our Michael with come from question Binetti ISI. will

Michael Binetti

embedded Stefan, of just clearance. in went the relative did past bit the with help resonating term DXC, XQ. more us in little to as near you this, on you connect quarter some And season maybe a of to actual that positive actual business, mention just the little America that some in guidance North moved end what's you Zac, for the bit but I better America, out consumer. indicators through North what's -- some third Maybe a know unpack little a you

I comps in think slowed North it sounded like July. America

little the a compressed was rate were seeing below quarter before average. the rate to exit business the July that the the run low? the So you or returned Has

Stefan Larsson

Thank Michael. you, Yes.

there. me let So start

what out quarter. playing with start yes, the second in So unpacking we saw let's

and we inventory into and for clearance, but took we the products, were So market to we months. the May aggressive both year came in are a DXC last with than with in season across plan came that. more not on proactively less company those clearance new more price Then to be turn mid-July we clearance, follow June. decided brands with when summer focused the full for And peak more

Calvin of the what see period During up the go new Tommy And we resonating that, But on in benefit see polo transitional and of total when focus less outerwear. therefore, into clearance it having on as August, newness, growth having season, consumer. new revenue. comes July, further clearance when that example, season outerwear season denim, is drives fully the have we didn't continued and an and with new that resonating. Same more into to on less key clearance in transitional peak the the more denim, match innovation underwear, leaning the the we shirts, with is the Chinos, we more

to improvement big a fall is all start year much when versus offering the we too from way last our season we that fast summer year more last fall. are So in the of this transitional went versus

Zachary Coughlin

the for We've ahead years of really market over we last true consistent and or of outlook. that Thanks been get this for macros conditions, the absolutely holds Yes. couple don't that question.

the Asia experiencing. as and America, current DTC been Europe our provided recent matter that that for outlook North we trends that really we've for match and So well,

XQ outlook year. of for So the for that we that's carry true and rest true the for DTC well actually as XQ as

Operator

with come Sole question from Jay Our next UBS. will

Jay Sole

about can you've more you feeling sales if you're talk the region the little Europe wondering just and bit initiatives. about executing quality a been Stefan, as of how

Stefan Larsson

Yes. Thanks, Jay. Absolutely.

good really quality the in how are feel and executing market. we about that's resonating we how So of initiative the sales

in of less see is newness and newness how how here I more in drive referenced and in that selling order we the it the forward-looking more and the into now business how it as we see season also, We with we clearance and end the books. came So than last year.

really that. feeling good So about

In for performance flagged Europe, we high experience. prepared with remarks, CEO to are close leader relevant my addition, a I permanent a in announce highly very

market. how feeling But the execute So overall, the it good good very quality about -- about we of plays shortly. out on coming in up sales and how

Operator

will Our from with next question Drbul come Bob Guggenheim.

Robert Drbul

circle that's America. are American back how within you targets on feel wanted you market, that of Just progress the where specifically the you're you've Can North North that about you the with and to making going? you think talk profitability talked with about sort

Stefan Larsson

Bob. you, Thank Absolutely.

So PVH+ be for the continues America, a it proof North great to point execution. on

EBIT at So quarter, growth if delivered the you for we XX.X% Calvin and business, at Tommy look high-quality margin. second in the an X% combined

So key continue with very products, gross it's We America by drive what But make our the basis stores, XXX on and stronger partners improving, see driven product quarter meaning newness points another presentation growth. importantly, work. And we the we most drives how inventory. business executing in SG&A brands operating wholesale to our life to and they and partnership e-commerce and out drives wholesale focus see into with to improvement of our a improvements offers the close margin an category build margin is execution where improvement. and we hero in continue come the combination them partners, that marketplace we North product with improved PVH+,

America, very just job. keep there teams to it we in So but kudos at good North our a doing

Zachary Coughlin

example America of Bob, PVH+ think, as amazing Plan North I the I is of financial the then power well. And think an

that improved our I now it for that points And North environment. period I both basis improvement improvement, hundreds X time a operating would of think quarters. worth in think we for it's what's basis points all low-growth of hundreds gross from and comes ourselves as margin of over exciting describe of I of of in that sort margin has that external straight America points think by is hundreds basis us SG&A a reminding backdrop

And Stefan so that financial main apply there. I out the great said, of benefit example as as that from pillars think well I as Plan we think the a PVH+ it's comes

Operator

Ike Our Wells next question will come Fargo. Boruchow with from

Unknown Analyst

bit to you has because that Ike. I This G-III don't was for is if can wondering it if as on [indiscernible] a talk agreement. your know, more know scaling little update G-III you any I there's been licensing down.

a of sense much you how are on able to recapture yet? So that going to give you're

Stefan Larsson

Yes.

So thanks, Ike.

and sportswear continue coming in the on according multiyear our first to to Klein engine, multiyear wholesale deliver over we good to the our and 'XX. take back our we to out sourcing path have to be partnerships with business a accounts, key plan, good spring product period. Really a So engine start now Calvin build

Operator

of America. Our next come Nardone with question Bank Chris will from

Christopher Nardone

guidance. embedded that versus us implied PVH North region peer quick follow-up through promotions pulled Zac, both in you by the that walk in your margins. And your I XQ the then the in sales set? you business. total promos just compared was July into improvement the as tie to increased drivers for embedded margin America full just a on your year in Can back you to Can contributing that sequential guidance wondering for your and XQ are from comments operating

Stefan Larsson

outlook In Europe, see also proof we holding. Let tougher start the be PVH+ as we see with -- deliver North a you and now, from execution If initiatives see continue point regionally improvements saw our to biggest forward-looking change. an a me at backdrop. this see just we we of quarter look the And business We see the backdrop consumer where overall perspective, to books. the continued tougher it in Asia, within perspective. order of business an we on saw from and in quality the great sales trajectory -- wholesale America a we of

focused moments. the on strong continue consumer engagement to big continue consumer to winning drive and very We we be

Zachary Coughlin

Yes. Thanks, Chris.

about we think to through them XQ explain. our maybe in really I'll go pieces good I plans, feel and

here that America over the Asia revenue, XQ about For outlook North talked both our so hour DTC in we've trends through of actually same the the or assumes carry and last Pacific.

around that current stay So always featuring bit planned off a as we strategy of true no of conditions. timing. to wholesale really There's little noise improvements of

a you more Where XQ year, last is of some is we promotional here. any changes in the some as XQ talked other so modestly in do that down in the consistent our to And bit of we that really have than, we've reflective quarter see very of said, out macros gross sort comes more about as think margin, little that. On to very tougher environment numerical -- SG&A. changes outlook well playing consistent we playing

XQ, DTC tougher So the we of towards turn in managing once backdrop the P&L. saw rest really the getting we

in implement. more but some to resulted that's really that of identified. bit we've take And little So We'll time in a XQ of incremental some as XQ. efficiencies -- SG&A in those some see that

comes we work So say would really I in around similar, being and XQ, pretty XQ SG&A revenue a that we've general, see perspective, identified. ideas those to it and already from down margin and gross

Operator

will question Kernan come from next with TD Cowen. Our John

John Kernan

think about $X you Zac, targets, wholesale think DTC the on into now do that split around and wholesale plans basis, about the billion when DTC your long-term how business split? term long does managing The a how reported we the play wholesale business that? for

Stefan Larsson

set out just overall back So do let to me start, by we connecting giving you the overall. John, have what to

with systematic out approach Tommy iconic we through brands have through we and beloved Tommy full feel most with the our them, how the roach PVH+, a to them Calvin of globally shops. and and about together the connection consumer we're their the wholesale build their the and because profitable DXC the we good we feel take From consumer going to DXC split, potential. good increasingly build So set grow and partners to full business on follow wholesale highest we work the potential. X into closely Calvin, in the there we really both how level. And very we have to between about that's

Zac, to from want that's you if know perspective. And So overall don't I an add.

Zachary Coughlin

the as time over mix is I think of that independent channel XX% commitment it's our EBIT to important to No, make margin goes.

them the that marketplace that think in as build what the Stefan I go. And successful to. us. route outcomes most been delivers channels been of to when, mean couple for just years, does over as continue. improvements we've push make to of to for as spite in the channels there's a across profitability us an think we the omnichannel we're I And do across that doing to need the they of sign we've And forward our financially last choosing levels is whatever is financial I progress across continue that to able best that in we think channel profitable. satisfy of consumer the think, and that, channels movement a that said, seen of good I would we is successful to expect our we on of amount That go all ultimately they're

John Kernan

the on to of would quick about perspective model transferring think reported Maybe a just Ike's from in transition. be revenues question that next XX licenses G-III follow-up it. financial being coming a Got the terms over prior Is anything to material months there that in from royalty we should and revenues.

Zachary Coughlin

a over but No. out as licenses to laid mean we the able phased I that the return most you change. to what's is there manage as period about adapt perspective build to Stefan But P&L some composition the plan of impact be as P&L you behind important said also talked gives back, out to That have us the the time earlier, there. there'll end, to long be the in at capabilities time. period full

be in change of that because factor. particular anything So to we significant wouldn't expect calling that across

Operator

We have time come for from X Sachs. with more Brooke question will Roach that Goldman

Brooke Roach

on for thoughts promotional Are on color marketing promotions cut can your invest brand size into a in product increased for versus PVH customer? assortment elaborate seeing Zac, sensitivity And on little full the price your through give share can strategy. price broader Perhaps the Stefan, expectations backdrop? you you and campaigns of back latest half. any could embedding hoping as you're you that the you selling. I'm of headwind of seeing guidance in signs macro what your specific you your in the you're pricing

Stefan Larsson

Thank you, Brooke.

promotions to consumer and about well our best pricing, are Going Tommy biggest a into perspective positioned relative your really to competitors. and from question pricing the and Calvin both

tying discount back with rate in opportunity leaning we of to biggest we inventory much pricing start planning, very AUR were upfront. react historically the closer to terms -- we into from to a how planning how how replenish, assortment versus the demand, decreasing very much build So improving buying is the when we in have key growth categories, we demand closing the into buys,

it's So products, hero strengthening with in inventory newness, combination the key categories, the outgoing We of for between through better opportunities and that right the there. innovation transition growth the still we and see level composition assortment have the seasonal product the better the newness.

And supply there the build-out we AUC. it's see in demand were already connecting better the composition, So chain. of less that lower improvements inventory, data-driven to and

consumer more relative way great the relevance So the to the offering for it all consumer's -- perspective and on product that, but to product value back in a the competition. and tying

it. So I feel very good about

Zachary Coughlin

that the And a moving I bit. think from the is market around quantification

think looking what not looking quantify to magnitude a that of the picks up We increase we're I fully said for. which so And general impact. modest we're

important think good us is our shape. what's I for in is inventory

going works And we're be with able it it the to to when for and more worry so that, And make when our pressure. having to doesn't, versus combined when of inventory be us choices consumers about promotional. on to

half well So of think the that as the year. feel we I second we're positioned head into we

Stefan Larsson

All right.

thank following that, with you want we saying close the along just by journey. on for to So

focused a now deliver in come from. Calvin stay journey and now that's of everything of vision, sure longer-term executing business multiyear here It's value the stay their laser on the independently real we do we to connects where and potential. making are tougher, now that We will full is creation Tommy the macro and and where into building getting to

you very thank and much forward to shortly. So connect looking

Operator

Second you. PVH Conference conclude Earnings This does Thank Quarter Call. XXXX today's

have time, wonderful may and this disconnect at day. a You

PVH (PVH) 28 Aug 242025 Q2 Earnings call transcript