PVH Corp (0KEQ.L) Q2 2025 Earnings Report

PVH Corp posted a resilient Q2 2025 with revenue of $2.1672 billion, up 4.5% year-over-year and 9.3% quarter-over-quarter, underscoring continued demand for premium brands Tommy Hilfiger and Calvin Klein. Gross margin remained strong at 57.7%, contributing to an EBITDA of $201.9 million and an operating income of $121.9 million, while net income reached $224.2 million and diluted EPS rose to $4.62. A notable item this quarter was a negative income tax expense of $113 million, which unfavorably distorted the tax line in a way that materially boosted net income on a GAAP basis, warranting a careful read of the quarterly tax benefit component when assessing ongoing earnings power.

Cash generation remained robust, with net cash provided by operating activities of $213.1 million and free cash flow of $181.9 million, supported by depreciation and amortization of $68.7 million and stock-based compensation of $13.9 million. PVH ended the quarter with $248.8 million of cash and cash equivalents and reported total debt of $4.286 billion; net debt stood at approximately $4.037 billion, signaling a leverage profile that remains a key risk despite solid cash generation. The quarter also reflects ongoing capital allocation activity, including modest share repurchases ($4.8 million) and debt repayments of ~$504 million in financing activities.

Overall, the quarter demonstrates PVH’s brand strength and cash-generative capabilities but highlights the central investment risk: a high debt burden that constrains optionality. The longer-term upside rests on deleveraging progress, DTC mix improvement, and continued brand momentum, tempered by macro sensitivity and FX exposure in international markets.