- Q3 Revenue Performance Reported $2.3 billion (-1% in constant currency), with wholesale up 1% and D2C down 1%, aligning with guidance.
- Regional Growth Variability Americas revenue grew 2% (wholesale driven), EMEA up 4% reported but -2% in constant currency, and Asia Pacific flat in constant currency.
- Full-Year Outlook Reaffirmed operating margin guidance and narrowed non-GAAP EPS to $7.04–$7.09, with full-year revenue up low single digits reported.
- Calvin Klein Strategy Brand revenue up 2% (flat in constant currency) amid product design consolidation, on track for margin recapture ahead of spring 2026.
- Cost Efficiency Progress PVH+ Plan achieved 200–300 bps SG&A improvement by 2025, with over 200 bps already secured and 300 bps gross margin margin recapture planned.
Regional Performance
In Europe, revenue increased 4% but was down low single digits in constant currency, with wholesale down less than 1% and D2C down mid-single digits. In the Americas, revenue grew 2%, driven by wholesale growth, while D2C declined low single digits. Asia Pacific revenue was flat in constant currency, with D2C turning to positive growth. The company's global brands, Tommy Hilfiger and Calvin Klein, showed resilience, with revenues up 1% and 2% as reported, respectively.
Operational Highlights
The company continues to execute its PVH+ Plan, focusing on iconic brands Calvin Klein and Tommy Hilfiger, and investing in marketing and growth initiatives. Calvin Klein's global product capability in New York is on track to resolve transitory operational challenges. The company noted that improving weather in Europe is helping to sell cold-weather categories and transitional products. Black Friday sales were on plan in Europe and North America, with a strong showing from Gen-Z consumers.
Outlook and Valuation
For the full year, PVH expects to deliver revenue and operating margin in line with its previous guidance. Non-GAAP EPS outlook is narrowed to $7.04-$7.09. The company's P/E Ratio is 8.06, and the ROE is 9.41%, indicating a relatively stable valuation. With an expected revenue growth rate of 3.0% next year, the company's valuation appears reasonable. The company's focus on building the Calvin Klein brand's desirability and its efforts to improve SG&A through its PVH+ Value Driver 5 initiative are expected to drive long-term growth.
Cost Optimization and Future Plans
The company announced 200-300 basis points of SG&A improvement by 2025 through its PVH+ Value Driver 5 initiative, with over 200 basis points already confirmed. This will flow through into 2026. The company plans to continue building on its strengths, with a focus on product design, marketing, and consumer engagement. The company's confidence in its inventory purchases for the next couple of seasons is expected to drive a strong free cash flow year in 2024 and enter 2026 with significant cash, providing optionality.