Key Takeaways
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- PVH reported Q2 net income of $224.2 million ($4.63/share), up from $158 million the prior year, and adjusted EPS of $2.52 versus FactSet consensus of $2.01.
- Revenue rose to $2.17 billion (vs. $2.07bn a year ago) and beat the $2.12 billion Street estimate.
- The company raised its estimate of unmitigated tariff costs to $70 million for the full year (about $1.15/share), up from a prior $65 million ($1.05/share).
- PVH reaffirmed full-year adjusted EPS guidance of $10.75–$11.00 (Street $10.84) but Q3 adjusted EPS is guided below consensus at $2.35–$2.50 (FactSet $2.94).
- Direct-to-consumer revenue grew 4%, led by EMEA, while Americas revenue jumped 11%, partly from wholesale shipments pulled into H1.
What Happened?
PVH beat expectations in Q2 on both top- and bottom-line metrics, driven by stronger wholesale timing and steady direct-to-consumer (DTC) performance. Management increased the company’s estimate of unmitigated tariff headwinds to $70 million for the year, reflecting higher trade-cost exposure. The firm reiterated full-year adjusted EPS guidance but signaled a weaker Q3 cadence because some wholesale shipments were shifted into the first half.
Why It Matters
The results show PVH can still deliver earnings beats despite macro pressure, but the upward revision to tariff costs is a tangible margin risk going forward. The shift of wholesale revenue into H1 creates a tougher Q3 comparison and highlights timing risk in revenue recognition — investors should treat near-term guidance and quarter-to-quarter cadence with caution. Continued DTC growth, especially in EMEA, is a positive structural signal, but tariffs and consumer-sentiment softness remain key downside risks for margins and future guidance.
What’s Next?
Watch Q3 results and the company’s margin trajectory closely: confirm whether DTC momentum sustains, whether wholesale shipment timing reverses (creating headwinds in upcoming quarters), and whether management takes pricing, sourcing, or mix actions to offset tariffs. Monitor developments in trade policy or additional tariff actions that could widen the $70 million headwind, and track whether PVH updates full-year guidance in response to evolving consumer demand or further cost pressures.
