NYSE:PVH
PVH CORP. /DE/
PVH Corp. is a leading global fashion powerhouse owning iconic brands like Calvin Klein and Tommy Hilfiger with a robust direct-to-consumer strategy.
Key Metrics
Investment Thesis
Bull Case
Investors may view PVH as an attractive compounder due to its high return on invested capital and consistent ability to generate significant free cash flow. The company's powerful brand equity offers pricing power that insulates margins during inflationary periods, while the shift to direct-to-consumer channels drives higher-margin growth. A disciplined capital return program via buybacks supports earnings per share growth even when organic revenue expansion moderates.
Bear Case
Concerns persist regarding the company's exposure to a slowing global economy which could disproportionately affect discretionary fashion spending. The substantial goodwill of $2.26B represents a risk if brand relevance declines or if integration costs for potential acquisitions rise unexpectedly. Additionally, the current decline in revenue year-over-year suggests that growth may be hitting a plateau without significant new category innovations.
About PVH CORP. /DE/
PVH Corp. designs, manufactures, and markets fashion apparel under its Calvin Klein and Tommy Hilfiger brands across North America, Europe, and Asia. The company leverages a strong global retail footprint and direct-to-consumer digital channels to drive growth in the competitive athleisure and lifestyle segments. Its diversified portfolio allows it to capture consumer demand across various price points and categories while maintaining operational flexibility.
Analysis
Management Discussion
Management delivered strong operational performance in 2025, reporting revenue of $8.65B despite a slight decline from the prior year's growth trajectory. Net income remained robust at $598.5M, supported by disciplined cost management and continued capital allocation to share repurchases totaling $524.8M. The cash flow from operations of $740.9M underscores healthy liquidity generation, though investors should monitor the impact of working capital changes on future free cash flow.
Industry Overview
The global apparel industry is characterized by rapid trends, shifting consumer preferences toward sustainability, and increasing competition from both high-street fast fashion and luxury houses. Companies must balance inventory risk with the need for agile supply chains to meet real-time demand while navigating complex logistics networks. Digital transformation remains a critical battleground as consumers increasingly expect seamless omnichannel experiences.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $9.02B | $9.22B | $8.65B |
| Cost of Revenue | $3.90B | $3.85B | $3.51B |
| Gross Profit | $5.12B | $5.36B | $5.14B |
| Operating Expenses | $4.65B | $4.43B | $4.37B |
| Operating Income | $470.7M | $928.8M | $772.3M |
| G&A | $4.38B | $4.54B | $4.41B |
| Stock-Based Comp | $46.6M | $51.9M | $54.0M |
| D&A | $301.5M | $298.6M | $282.2M |
| Depreciation | $255.4M | $259.9M | $243.9M |
| Amortization | $32.1M | $23.1M | $22.5M |
| Other OpEx | $274.8M | $-108.2M | $-41.1M |
| Non-Operating Income | $-82.5M | $-87.8M | $-66.6M |
| Interest Expense | $89.6M | $99.3M | $89.8M |
| Interest Income | $7.1M | $11.5M | $23.2M |
| Pre-Tax Income | $388.2M | $841.0M | $705.7M |
| Income Tax | $187.8M | $177.4M | $107.2M |
| Continuing Ops | $200.4M | $663.6M | $598.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $200.4M | $663.6M | $598.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $200.4M | $663.6M | $598.5M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $3.58B | $3.26B | $3.49B |
| Cash & Equivalents | $550.7M | $707.6M | $748.0M |
| Accounts Receivable | $923.7M | $793.3M | $851.2M |
| Inventory | $1.80B | $1.42B | $1.51B |
| Other Current Assets | $303.4M | $339.1M | $379.7M |
| Long-Term Assets | $8.19B | $7.91B | $7.55B |
| PP&E (Net) | $904.0M | $862.6M | $741.0M |
| Intangibles | $3.25B | $3.10B | $3.02B |
| Goodwill | $2.36B | $2.32B | $2.26B |
| Operating Leases | $1.30B | $1.21B | $1.16B |
| Other LT Assets | $189.1M | $201.8M | $167.9M |
| Total Assets | $11.77B | $11.17B | $11.03B |
| Current Liabilities | $2.77B | $2.77B | $2.74B |
| Accounts Payable | $1.33B | $1.07B | $1.15B |
| Current Debt | $111.9M | $577.5M | $510.8M |
| Current Leases | $353.7M | $288.9M | $289.1M |
| Other Current Liab | $100.5M | $55.5M | $55.3M |
| Long-Term Liabilities | $3.99B | $3.28B | $3.15B |
| Long-Term Debt | $2.18B | $1.59B | $1.58B |
| LT Operating Leases | $1.14B | $1.08B | $1.01B |
| Other LT Liab | $671.1M | $615.0M | $559.7M |
| Total Liabilities | $6.76B | $6.05B | $5.89B |
| Shareholders' Equity | $5.01B | $5.12B | $5.14B |
| Retained Earnings | $4.75B | $5.41B | $6.00B |
| AOCI | $-713.1M | $-753.6M | $-856.8M |
| Treasury Stock | $2.36B | $2.94B | $3.46B |
| Total L&E | $11.77B | $11.17B | $11.03B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $200.4M | $663.6M | $598.5M |
| Non-Cash Adjustments | $-957.7M | $695.1M | $-91.8M |
| Working Capital Changes | $796.5M | $-389.3M | $234.2M |
| Cash from Operations | $39.2M | $969.4M | $740.9M |
| Capital Expenditures | $290.1M | $244.7M | $158.7M |
| Cash from Investing | $-278.2M | $-85.1M | $-137.7M |
| Share Buybacks | $418.6M | $570.3M | $524.8M |
| Cash from Financing | $-428.2M | $-721.8M | $-550.4M |
| FX Effect | $-24.6M | $-5.6M | $-12.4M |
| Net Change in Cash | $-691.8M | $156.9M | $40.4M |
| Beginning Cash | $1.24B | $550.7M | $707.6M |
| Ending Cash | $550.7M | $707.6M | $748.0M |
Frequently Asked Questions
How does PVH CORP. /DE/ make money?
The company operates primarily through two main segments: The Calvin Klein Group, which focuses on premium lifestyle apparel including jeanswear, denim, and athleisure; and The Tommy Hilfiger Group, targeting the contemporary and luxury markets with ready-to-wear and accessories. Revenue streams are further diversified by sales channels, including wholesale partnerships with department stores and direct-to-consumer e-commerce platforms.
What are the main risks for PVH?
The apparel industry faces intense competition from fast-fashion retailers and emerging luxury brands that can erode pricing power and market share. Macroeconomic headwinds, including inflation and currency fluctuation impacts, may suppress consumer discretionary spending on premium goods. Supply chain disruptions or geopolitical instability could interrupt manufacturing and distribution, while shifting sustainability regulations add compliance complexity.
What is PVH's competitive advantage?
PVH possesses a formidable brand portfolio with deep consumer loyalty spanning multiple generations and demographics. The company benefits from significant scale in supply chain operations and logistics, allowing for efficient inventory management and rapid response to fashion trends. Its aggressive investment in digital commerce infrastructure provides a direct margin advantage over traditional wholesale-only competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.