PVH Corp can deliver EPS growth even while facing 'multiple macro headwinds' -- analysts

[Tommy Hilfiger Logo]
ozgurdonmaz/iStock Unreleased via Getty Images

PVH Corp (NYSE:PVH [https://seekingalpha.com/symbol/PVH]) delivered a solid quarter [https://seekingalpha.com/news/4489335-calvin-klein-and-tommy-hilfiger-fuels-pvh-growth-upbeat-fy25-outlook]thanks to the popularity of its Calvin Klein and Tommy Hilfiger brands, leading the company to raise its full-year revenue guidance, including any additional tariff-related costs.

“PVH’s Q2 report was a solid sign of stabilization after a choppy Q1 report,” said UBS analyst Jay Sole, adding that the company has the brand strength and balance sheet “to drive earnings growth over the long term, despite multiple macro headwinds.”

On the company’s earnings call, [https://seekingalpha.com/article/4817219-pvh-corp-pvh-q2-2026-earnings-call-transcript] chief financial officer Zachary Coughlin acknowledged the headwinds the company anticipates from tariffs and expects to see 250 basis points of gross margin compression in FY25. But headwinds from increased tariff rates will be offset by improvements achieved in the second quarter.

“Significant” cost savings connected to the company’s Growth Drive 5 Actions will not only simplify the company’s operating model, but to deliver 200 to 300 basis points of operating margin expansion as soon as Q4.

“PVH is getting the operational issues which negative impacted Q1 under control,” Sole said, expecting gross margin benefit in FY26 as the company laps these issues.

The company also raised its FY25 revenue outlook, reflecting the company’s confidence in its “ability to execute with impact despite the uncertain global macroenvironment,” CEO Stefan Larsson said in the earnings release.

For Q3, however, guidance fell short of Wall Street’s expectations, a deliberate decision given that PVH (NYSE:PVH [https://seekingalpha.com/symbol/PVH]) historically guides out quarter EPS below expectations.

“The company has a pretty consistent trade record of beating the lower expectations,” BofA Securities’ Christopher Nardone said, and the lack of a guidance cut on higher tariff rates for FY25 is seen as a positive.

PVH Corp. (NYSE:PVH [https://seekingalpha.com/symbol/PVH]) reversed earlier gains to trade in negative territory, yet continues to hover above its 200-day moving average for the first time since January.

MORE ON PVH CORP

* PVH Corp. (PVH) Q2 2026 Earnings Call Transcript [https://seekingalpha.com/article/4817219-pvh-corp-pvh-q2-2026-earnings-call-transcript]
* PVH Might Create Massive Shareholder Value (Playing The Abercrombie & Fitch Handbook?) [https://seekingalpha.com/article/4817136-pvh-might-create-massive-shareholder-value-playing-the-abercrombie-and-fitch-handbook]
* PVH: Better Q2 Results May Be A Pull-Forward Ahead Of Tariffs [https://seekingalpha.com/article/4816962-pvh-better-q2-results-may-be-pull-forward-ahead-of-tariffs]
* Calvin Klein and Tommy Hilfiger fuels PVH growth, upbeat FY25 outlook [https://seekingalpha.com/news/4489335-calvin-klein-and-tommy-hilfiger-fuels-pvh-growth-upbeat-fy25-outlook]
* PVH Corp Non-GAAP EPS of $2.52 beats by $0.52, revenue of $2.17B beats by $50M [https://seekingalpha.com/news/4489320-pvh-corp-non-gaap-eps-of-2_52-beats-by-0_52-revenue-of-2_17b-beats-by-50m]