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PVH Tops Q3 Profit Views, Lifts EPS Outlook as Tariffs Pinch Margins

Tariff pressures paired with prior tax charges overshadow operational gains.

Overview

  • Adjusted EPS reached $2.83, beating estimates, while revenue of $2.29 billion declined about 1% in constant currency and gross margin fell to 56.3%.
  • PVH reaffirmed a flat to slightly positive full‑year revenue outlook and raised adjusted EPS guidance to $10.85 to $11.00.
  • Fourth‑quarter adjusted EPS guidance of $3.20 to $3.35 came in below Wall Street expectations, and shares fell about 10.5% on Thursday.
  • Management said tariffs materially compressed profitability in Q3 and will weigh more heavily in Q4, with mitigation actions underway but not fully offsetting this year.
  • GAAP net earnings dropped to $4.2 million due to a $121 million increase in tax expenses tied to earlier impairment charges, as the company continues brand investments and store initiatives in Tokyo and New York.