PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, may have nudged up its sales forecast for next year, but it is still grappling with the increasingly complex tariffs landscape.
The company expects the tariffs currently in place to have an overall net negative impact on earnings in 2025, including an approximately $70 million unmitigated impact to earnings before interest and taxes or approximately $1.15 per share compared to previous guidance of $65 million and $1.05 per share.
“We expect to mitigate some of these costs through strategic actions in the second half of the year and 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,” Zac Coughlin, chief financial officer of PVH, said during a call with analysts.
At the same time, he provided an update on mitigation efforts.
“We’d previously communicated that we’d mitigate approximately 50 percent of the costs of the prior cost in 2025, with more over time. With the newly announced rates coming in for Q4 for us so around 2 times higher than we previously had talked about, we do see that mitigation costs being a little bit lower for 2025,” he said. “But most importantly, we expect to continue to expand on our mitigation efforts through the strategic actions throughout 2026.”
“Just like all of our competitors, we are working through how to best mitigate the tariffs in a way that keeps our competitive positioning,” added Stefan Larsson, CEO of PVH, on the call.
“We assess every part of the value chain and it’s still early, but we are well-positioned to work through this in a competitive way.”
On Tuesday, PVH Corp. said it expects fiscal 2025 revenue to increase slightly by low-single digits compared to flat to increase slightly previously, while adjusted profits per share for this year are still expected to come in at $10.75 to $11.
It reaffirmed its full-year outlook for operating margins at 8.5 percent, down from 10 percent last year.
Its stock was down 2.25 percent at $80.63.
