PVH Sees Earnings Squeeze in Third Quarter as Tariffs Take Toll

The American group PVH is suffering in the third quarter. The company, which owns Calvin Klein and Tommy Hilfiger, has drastically reduced its net income, while its sales kept pace, albeit falling at constant exchange rates.

The group ended the third quarter (ended November 2nd) with a gross profit of $1.293 billion, a drop of 1.81% compared to the same period last year. Net income, meanwhile, plummeted 96.82% to just $4.2 million, compared to $132 million in the same period of 2024.

Gross margin in the third quarter stood at 56.3%, down from 58.4% twelve months earlier. “The decrease reflects the effects of increased tariffs on inbound products entering the country; a more intense promotional environment; gross margin variance due to the transition of previously licensed women’s product categories to an internal wholesale business; and increased transportation costs and incremental discounts offered to customers to address the impact of product delivery delays,“ the company said.

PVH’s net income shrank by 96.82% in the period

In the period, PVH’s sales amounted to $2.29 billion, up 1.74% compared to the third quarter of 2024, but down 1% at constant exchange rates. By market, sales in Europe rose by 4% and in the Americas by 2%, while in Asia they declined by 1%.

Both Calvin Klein and Tommy Hilfiger posted a positive performance in the third quarter, with sales up 2% for Calvin Klein and 1% for Tommy Hilfiger.

“In Europe, we saw a more challenging backdrop as we entered the fall, while in the Americas our digital channels continued to outperform, and in Asia we again exceeded expectations, driven by strong performance in the direct channel, with a notable improvement in China,“ detailed Stefan Larsson, CEO of PVH.

“Despite the continued uneven global consumer environment, we delivered an on-target start to the holiday season and Black Friday week in both Europe and North America,“ he added.

In the first nine months of the current fiscal year, PVH accumulated growth of 2.61% to $6.445 billion. Gross profit, meanwhile, was 1.48% lower than twelve months earlier, at $3.706 billion, and net profit fell by 58.4% to $183.6 million.