Category: 3. Business

Fast Company recognized Corona and AB InBev on its 2025 “Brands That Matter” list, honoring companies and brands at the intersection of business and culture. In this year’s edition, Corona is celebrated as a “Brand That Matters” and within the “Food and Beverage” category. 

“As big beer brands expand into the nonalcoholic beverage market, Corona went where no N/A beer has gone before: the Olympics…The sponsorship was accompanied by the “For Every Golden Moment” campaign, which highlighted the celebratory spirit of the games—and will be revived for the Milano Cortina Olympic Winter Games in 2026.”

AB InBev is recognized in the “Family of Brands” category, acknowledging the top five global companies that built marketing moments around their brands.

“As one of the world’s largest breweries, AB InBev’s brand portfolio is extensive, and several of its brews notched marketing wins in the past year. The company also focused on impact through its brands, including a focus on local production globally and water efficiency…”

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  Third quarter

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    Revenue: Increased 2% to $2.294 billion compared to the prior year period and exceeded guidance of flat to increase slightly. Decreased less than 1% on a constant currency basis, in line with guidance of a slight decrease.
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    EPS:

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      GAAP basis: $0.09. Results include $22 million of pre-tax restructuring costs and other tax related impacts, which have been excluded from the Company’s results on a non-GAAP basis.
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      Non-GAAP basis: $2.83 exceeded guidance of $2.35 to $2.50.

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  Full year outlook

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    Revenue: Narrows outlook to up low single-digits compared to increase slightly to up low single-digits previously. Reaffirms outlook of flat to increase slightly on a constant currency basis.
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    Operating margin: Reaffirms outlook of approximately 8.5% on a non-GAAP basis.
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    EPS: Narrows outlook to a range of $10.85 to $11.00 on a non-GAAP basis compared to $10.75 to $11.00 previously. Outlook includes:

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      an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an unmitigated impact of approximately $1.05 per share compared to approximately $1.15 per share previously and a partially offsetting impact of planned mitigation actions
    • 
      an estimated positive impact of approximately $0.45 per share related to foreign currency translation in line with previous guidance

NEW YORK–(BUSINESS WIRE)–Dec. 3, 2025–
PVH Corp. [NYSE: PVH] today reported its 2025 third quarter results and 2025 outlook.

Stefan Larsson, Chief Executive Officer, commented, “In the third quarter, we exceeded our guidance across reported revenue, operating margin and EPS, and delivered constant-currency revenue in line with expectations. Through disciplined PVH+ Plan execution, we continued to lean into the iconic brand strength of Calvin Klein and TOMMY HILFIGER, expanding innovation across product and delivering cut-through marketing. Calvin drove growth in key categories like underwear and fashion denim, while Tommy Hilfiger delivered growth in core lifestyle categories, elevating style icons through the Hilfiger Racing Club campaign.”

Larsson continued, “In Europe, we saw a tougher backdrop entering the fall, while in the Americas, our digital channels continued to outperform, and in APAC we again exceeded expectations, driven by strong DTC performance with a notable improvement in China. Despite the continued uneven global consumer environment, we delivered an on-plan start to the Holiday season and Black Friday week in both Europe and North America. At the same time, we continue to strengthen our data- and demand-driven supply chain, reflected in healthy inventory levels. We are also investing in key growth initiatives, especially marketing, and freed up over 200 basis points in SG&A efficiencies over the past 18 months. Looking ahead, we are reaffirming our full-year constant currency revenue and operating margin outlook and narrowing our reported revenue and non-GAAP EPS outlook to the high end of our previous ranges, reflecting our confidence in our brands.”

Zac Coughlin, Chief Financial Officer, said, “For the third quarter, we delivered on our overall revenue plan and exceeded our EPS guidance despite an ongoing choppy macroeconomic backdrop, and we are narrowing our full year reported revenue and non-GAAP EPS guidance towards the high-end of our prior ranges. We continue to manage our business prudently, investing in key brand accretive investments, and have unlocked significant cost efficiencies through our Growth Driver 5 actions.”

Non-GAAP Amounts:

Amounts stated to be on a non-GAAP basis exclude the items that are defined or described in greater detail near the end of this release under the heading “Non-GAAP Exclusions.” Amounts stated on a constant currency basis also are deemed to be on a non-GAAP basis. Reconciliations of amounts on a GAAP basis to amounts on a non-GAAP basis are presented after the Non-GAAP Exclusions section and identify and quantify all excluded items.

Third Quarter Review:

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  Gross margin was 56.3% compared to 58.4% in the prior year period. The decrease reflects the impacts of (i) increased tariffs on goods coming into the U.S., (ii) an increased promotional environment, (iii) the gross margin differential due to the transition of previously licensed women’s product categories to an in-house wholesale business, and (iv) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays.

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  Inventory increased 3% compared to the prior year period, reflecting a significant improvement as compared to the increase in the second quarter of 2025, and includes a 2% impact of increased tariffs.

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  Earnings before interest and taxes (“EBIT”) on a GAAP basis was $181 million, inclusive of a $8 million positive impact attributable to foreign currency translation, compared to $183 million in the prior year period. EBIT on a GAAP basis included costs of $22 million in the third quarter and net costs of $53 million in the prior year period described under the heading “Non-GAAP Exclusions” later in this release. EBIT on a non-GAAP basis for these periods excludes these amounts.

  EBIT on a non-GAAP basis was $202 million, inclusive of the $8 million positive impact attributable to foreign currency translation, compared to $236 million in the prior year period. The decrease was more than explained by the gross margin decline discussed above. The Company continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

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  Earnings per share (“EPS”)
  
  
  

EPS on a GAAP basis for these periods also includes the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for these periods excludes these amounts.

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  Net interest expense increased to $21 million from $16 million in the prior year period primarily due to the impact of the accelerated share repurchase agreements discussed below.

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  Effective tax rate was 97.4% on a GAAP basis compared to 21.0% in the prior year period. The effective tax rate was 25.5% on a non-GAAP basis compared to 22.6% in the prior year period.

  The effective tax rate on a GAAP basis for the third quarter of 2025 includes the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges that were recorded in the first quarter of 2025, which are non-deductible for tax purposes and factored into the Company’s annualized effective tax rate. The effective tax rate on a non-GAAP basis for the third quarter of 2025 excludes this impact.

Stock Repurchase Program:

Delivering on its commitment under the PVH+ Plan to return excess cash to stockholders, the Company repurchased 5.4 million shares of its common stock for $561 million in the first quarter through accelerated share repurchase (“ASR”) agreements and open market purchases. During the third quarter of 2025, the ASR agreements were settled and the Company received an additional 2.3 million shares of its common stock, bringing the total shares repurchased to 7.7 million for the first nine months of 2025. The Company did not make any payments to repurchase its common stock during the second and third quarters of 2025.

2025 Outlook:

The Company’s 2025 outlook reflects an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S., including an approximately $65 million unmitigated impact to full year 2025 EBIT, or approximately $1.05 per share, and a partially offsetting impact of planned mitigation actions which began in the third quarter of 2025 and will more significantly take effect in the fourth quarter of 2025.

There is significant uncertainty with respect to global trade policies and the related impact on the broader macroeconomic environment and, as such, the Company’s 2025 outlook could be subject to material change.

Full Year 2025 Guidance

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  Revenue: Narrowing outlook to up low single-digits compared to increase slightly to up low single-digits previously. Reaffirming outlook of flat to increase slightly on a constant currency basis.

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  Operating margin: Reaffirming outlook of approximately 8.5% on a non-GAAP basis compared to 8.9% on a GAAP basis and 10.0% on a non-GAAP basis in 2024.

EPS on a GAAP basis for 2024 includes the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for 2024 excludes these amounts.

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  Net interest expense is projected to increase to approximately $80 million compared to $67 million in 2024, primarily due to the impact of the ASR agreements discussed above.

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  Effective tax rate is projected to be approximately 22% on a non-GAAP basis.

Fourth Quarter 2025 Guidance

EPS on a GAAP basis for the fourth quarter of 2024 includes the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for the fourth quarter of 2024 excludes these amounts.

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  Net interest expense is projected to increase to approximately $20 million compared to $14 million in the fourth quarter of 2024 primarily due to the impact of the accelerated share repurchase agreements discussed above.

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  Effective tax rate is projected to be approximately 22% on a non-GAAP basis.

The Company is unable to project full year 2025 operating margin and full year and fourth quarter 2025 EPS and effective tax rate on a GAAP basis without unreasonable efforts as there are significant uncertainties with respect to (i) the amount and timing of the restructuring costs to be incurred during 2025 in connection with the multiyear Growth Driver 5 Actions defined later in this release and (ii) the actuarial gain or loss on the Company’s retirement plans, to be recorded in the fourth quarter 2025, due to volatility in the financial markets. As such, the Company is unable to provide a full reconciliation of its full year 2025 operating margin and full year and fourth quarter 2025 EPS and effective tax rate guidance on a non-GAAP basis to the corresponding measures on a GAAP basis. See Non-GAAP Exclusions below for items recorded in the first, second and third quarters of 2025.

Please see the section entitled “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail and reconciliations of GAAP to non-GAAP amounts discussed in this section.

Non-GAAP Exclusions:

The discussions in this release that refer to non-GAAP amounts exclude the following:

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  Pre-tax restructuring costs totaling $80 million incurred in 2025 consisting principally of severance in connection with the Company’s multiyear initiative announced in 2024 to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization (the “Growth Driver 5 Actions”), of which $13 million was incurred in the first quarter, $45 million was incurred in the second quarter and $22 million was incurred in the third quarter.
• 
  Pre-tax noncash goodwill and other intangible asset impairment charges of $480 million recorded in the first quarter of 2025, which were primarily due to a significant increase in discount rates.
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  Pre-tax loss of $28 million recorded in the fourth quarter of 2024 related to the recognized actuarial loss on retirement plans.
• 
  Pre-tax net restructuring costs totaling $24 million incurred in 2024 consisting principally of severance and the gain on the sale of a warehouse and distribution center in the third quarter in connection with the Growth Driver 5 Actions, of which $15 million was incurred in the second quarter, $3 million was incurred in the third quarter, and $6 million was incurred in the fourth quarter.
• 
  Pre-tax costs of $51 million incurred in the third quarter of 2024 in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of future payments to Mr. Hilfiger.
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  Pre-tax gain of $10 million recorded in the first quarter of 2024 in connection with the Company’s sale of the Heritage Brands women’s intimates business.
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  Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item was (i) taxable or tax deductible, in which case the tax effect was taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumed no tax effect.

The Company presents constant currency revenue information, which is a non-GAAP financial measure, because it is a global company that transacts business in multiple currencies and reports financial information in U.S. dollars. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in U.S. dollars with respect to its foreign revenues and can have a significant impact on the Company’s reported revenues. The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into U.S. dollars at the average exchange rates in effect during the comparable prior year period (rather than at the actual exchange rates in effect during the relevant period).

The Company presents non-GAAP financial measures, including constant currency revenue information, as a supplement to its GAAP results. The Company believes presenting non-GAAP financial measures provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of non-recurring and non-operational amounts and the effects of changes in foreign currency exchange rates, as applicable, and (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company believes that investors often look at ongoing operations of an enterprise as a measure of assessing performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding non-recurring and non-operational amounts are also the basis for certain incentive compensation calculations. Non-GAAP financial measures should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The non-GAAP financial measures presented may not be comparable to similarly described measures reported by other companies.

Please see tables 1 through 7 and the sections entitled “Reconciliations of Constant Currency Revenue” and “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” later in this release for reconciliations of GAAP to non-GAAP amounts.

Conference Call Information:

The Company will host a conference call to discuss its third quarter earnings release on Thursday, December 4, 2025 at 9:00 a.m. EST. Please log on to the Company’s website at www.PVH.com and go to the Events page in the Investors section to listen to the live webcast of the conference call. The webcast will be available for replay for one year after it is held. Please log on to www.PVH.com as described above to listen to the replay. The conference call and webcast consist of copyrighted material. They may not be re-recorded, reproduced, re-transmitted, rebroadcast or otherwise used without the Company’s express written permission. Your participation represents your consent to these terms and conditions, which are governed by New York law.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release and made during the conference call/webcast, including, without limitation, statements relating to the Company’s future revenue, earnings, plans, strategies, objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company’s ability to realize anticipated benefits and savings from divestitures, restructurings and similar plans, such as the actions taken in recent years to focus on its Calvin Klein and Tommy Hilfiger businesses and its current multiyear initiative to simplify its operating model and achieve cost savings; (iii) the ability to realize the intended benefits from the acquisition of licensees or the reversion of licensed rights (such as the in-process plan to directly operate a significant portion of the businesses for the product categories that are or had been licensed to G-III Apparel Group, Ltd., with the remainder to be re-licensed to other third parties, upon the expirations over time of the underlying license agreements) and avoid any disruptions in the businesses; (iv) the Company has significant levels of outstanding debt, as well as significant additional borrowing capacity, and uses a significant portion of its cash flows to service its indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past; (v) the levels of sales of the Company’s apparel, footwear and related products, both to its wholesale customers and in its direct-to-consumer retail store and digital commerce operations, the levels of sales of the Company’s licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy (including inflationary pressures like those currently being experienced globally), fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, consumer sentiment and other factors; (vi) the Company’s ability to manage its growth and inventory; (vii) restrictions, including quotas and the imposition of new or increased duties or tariffs on goods from the countries where the Company or its licensees produce goods under its trademarks, any of which, among other things, could limit the ability to produce products in cost-effective countries, or in countries that have the labor and technical expertise needed, or require the Company to absorb costs or try to pass costs onto consumers, which could materially impact the Company’s revenue and profitability; (viii) the availability and cost of raw materials; (ix) the Company’s ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company’s products can best be produced); (x) the regulation or prohibition of the transaction of business with specific individuals or entities and their affiliates or goods manufactured in (or containing raw materials or components from) certain regions, such as the listing of a person or entity as a Specially Designated National or Blocked Person by the U.S. Department of the Treasury’s Office of Foreign Assets Control and the issuance of Withhold Release Orders by the U.S. Customs and Border Protection; (xi) changes in available factory and shipping capacity, wage and shipping cost escalation, and store closures in any of the countries where the Company’s or its licensees’ or wholesale customers’ or other business partners’ stores are located or products are sold or produced or are planned to be sold or produced, as a result of civil conflict, war or terrorist acts, the threat of any of the foregoing, or political or labor instability, such as the current war in Ukraine that led to the Company’s exit from its retail business in Russia and the cessation of its wholesale operations in Russia and Belarus, and the temporary cessation of business by many of its business partners in Ukraine; (xii) disease epidemics and health-related concerns, such as the recent COVID-19 pandemic, which could result in (and, in the case of the COVID-19 pandemic, did result in some of the following) supply-chain disruptions due to closed factories, reduced workforces and production capacity, shipping delays, container and trucker shortages, port congestion and other logistics problems, closed stores, and reduced consumer traffic and purchasing, or governments implement mandatory business closures, travel restrictions or the like, and market or other changes that could result in shortages of inventory available to be delivered to the Company’s stores and customers, order cancellations and lost sales, as well as in noncash impairments of the Company’s goodwill and other intangible assets, operating lease right-of-use assets, and property, plant and equipment; (xiii) actions taken towards sustainability and social and environmental responsibility as part of the Company’s sustainability and social and environmental strategy may not be achieved or may be perceived to be falsely claimed, which could diminish consumer trust in the Company’s brands and the Company’s brands’ values, as well as the potential for adverse consumer response to any sustainability, social or environmental actions taken by the Company; (xiv) the failure of the Company’s licensees to market successfully licensed products or to preserve the value of the Company’s brands, or their misuse of the Company’s brands; (xv) significant fluctuations of the U.S. dollar against foreign currencies in which the Company transacts significant levels of business; (xvi) the Company’s retirement plan expenses recorded throughout the year are calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions, and differences between estimated and actual results give rise to gains and losses, which can be significant, that are recorded immediately in earnings, generally in the fourth quarter of the year; (xvii) the impact of new and revised tax legislation and regulations; (xviii) the impacts of the decision by China’s Ministry of Commerce to place the Company on the List of Unreliable Entities, including the impact of any fines imposed, or restrictions or prohibitions on the Company that have the effect of limiting or prohibiting its ability to do business in China; and (xix) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”).

This press release includes, and the conference call/webcast will include, certain non-GAAP financial measures, as defined under SEC rules. Reconciliations of these measures are included in the financial information following this Safe Harbor Statement, as well as in the Company’s Current Report on Form 8-K furnished to the SEC in connection with this earnings release, which is available on the Company’s website at www.PVH.com and on the SEC’s website at www.sec.gov.

The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding revenue or earnings, whether as a result of the receipt of new information, future events or otherwise.

Please see following pages for information related to non-GAAP measures discussed in this release.

PVH CORP.

Non-GAAP Measures

(In millions, except per share data)

The Company believes it is useful to investors to present its results for the periods ended November 2, 2025 and November 3, 2024 on a non-GAAP basis by excluding (i) the restructuring costs incurred in the first, second, and third quarters of 2025, and the net restructuring costs incurred in the second and third quarters of 2024, related to the Company’s multiyear initiative to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization (the “Growth Driver 5 Actions”), consisting principally of severance as well as a gain on the sale of a warehouse and distribution center in the third quarter of 2024; (ii) the noncash goodwill and other intangible asset impairment charges recorded in the first quarter of 2025, which were primarily due to a significant increase in discount rates; (iii) the costs incurred in the third quarter of 2024 in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of future payments to Mr. Hilfiger (the “Mr. Hilfiger amendment”); (iv) the gain recorded in the first quarter of 2024 in connection with the sale in the fourth quarter of 2023 of the Company’s Heritage Brands women’s intimates business (the “Heritage Brands intimates transaction”); and (v) the tax effects associated with the foregoing pre-tax items. The Company excludes these amounts because it deems them to be non-recurring or non-operational and believes that their exclusion (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company, and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company believes that investors often look at ongoing operations of an enterprise as a measure of assessing performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding the items described above are also the basis for certain incentive compensation calculations. The non-GAAP measures should be viewed in addition to, and not in lieu of or superior to, the Company’s operating performance measures calculated in accordance with GAAP. The information presented on a non-GAAP basis may not be comparable to similarly titled measures reported by other companies.

The following table presents the non-GAAP measures that are discussed in this release. Please see Tables 1 through 7 for the reconciliations of the GAAP amounts to amounts on a non-GAAP basis.