PVH Closes Out 2024 with Better-Than-Feared Quarter, Upbeat 2025 Outlook, and New $500M Buyback Plan

PVH Corp delivered a fourth-quarter print that beat on both revenue and EPS, capping a difficult year on a stronger footing. The parent of Calvin Klein and Tommy Hilfiger topped expectations despite topline and margin pressures and issued 2025 guidance that surprised to the upside, standing out in a retail space otherwise crowded with caution. In a significant show of confidence, management announced plans for a new $500 million accelerated share repurchase (ASR), following a similar-sized buyback in 2024. Shares surged double digits post-earnings as investors latched on to signs of stabilization and improving execution.

For the fiscal fourth quarter, PVH reported adjusted EPS of $3.27, comfortably above the consensus estimate of $3.21 and ahead of its own guidance range of $3.05 to $3.20. Revenue came in at $2.37 billion, a 4.8% year-over-year decline, but better than both the $2.33 billion consensus and the company’s outlook of a 6–7% decline. In constant currency terms, revenue fell 2.3%. The quarter was impacted by the sale of the Heritage Brands womens intimates business (a 1% headwind) and the calendar shift from the 53rd week in 2023 (a 3% drag).

Gross margin compressed 210 basis points to 58.2%, in line with expectations, as higher freight costs and a more promotional environment weighed. Operating expenses were well managed, leveraging 30 bps to 47.9% of sales. Operating margin declined 180 bps to 10.3%, a touch better than the 10.2% forecast. Full-year adjusted EPS totaled $11.74, up from $10.68 in 2023.

Segment-wise, Calvin Klein revenue dipped 1.8% to $1.05 billion, with North America up nearly 3% but international down 4.1%. Tommy Hilfiger sales fell 5.1% to $1.28 billion, with strength in North America offset by a 7.3% decline internationally. The company cited continued strategic pullbacks in Europe to improve sales quality, though encouragingly, Fall order books in Europe are up 3% year-over-year. The wholesale channel showed resilience, while direct-to-consumer sales, especially digital, remained under pressure due to deliberate pullbacks in Europe.

Looking ahead, PVH issued full-year fiscal 2025 guidance that was broadly ahead of expectations. It sees adjusted EPS in the range of $12.40 to $12.75, well above the $11.43 consensus, even after factoring in a $0.20 FX headwind. Revenue is expected to be flat to slightly up year-over-year, an upgrade from earlier expectations of a decline. Operating margin is expected to remain steady or improve slightly from last year’s 10% on a non-GAAP basis. First-quarter guidance calls for EPS of $2.10 to $2.25 versus the Street’s $2.24, and revenue flat to down 2%.

The company addressed ongoing macro concerns, including tariffs. While PVH didn’t quantify the direct financial impact from the proposed Trump administration tariffs, management flagged air freight pressures and new sourcing constraints that may weigh on fiscal 2025 EPS. Still, they expressed confidence in levers available to defend margins, and analysts noted that the $500 million ASR alone adds an estimated $1.50 to 2025 EPS, helping mitigate some of the cost drag.

Capital return remains a clear priority. PVH completed $500 million in share repurchases during 2024 and announced a new $500 million ASR slated to begin in April 2025. That program will be funded through $350 million in cash and up to $150 million in short-term debt. The company still has $1.8 billion remaining on its $5 billion buyback authorization.

Despite macro uncertainty, PVH is beginning to earn back investor confidence. The rebound in European orders, stable profitability in North America, and commitment to shareholder returns all suggest the company is executing well on its “PVH+” plan. While pressure from tariffs, China weakness, and freight costs remain, PVH’s latest results signal that the worst may be behind it—and that it plans to fight back against its deeply discounted valuation.