PVH Expects Revenue Slump to End in 2025: What This Means for Calvin Klein and Tommy Hilfiger

After a Tough Year, PVH is Optimistic About Recovery in Revenue for 2025

Photo by ADEK BERRY / AFP) (Photo by ADEK BERRY/AFP via Getty Images

PVH Corp., the company behind global brands like Calvin Klein and Tommy Hilfiger, is turning the corner after a tough 2024. The fashion giant recently shared that it’s expecting sales to be flat or slightly positive in 2025—better than what analysts had predicted. The company had previously faced some setbacks, but there’s now hope on the horizon according to Yahoo! Finance.

Sales Outlook: A Positive Turn

After seeing a 5% decline in revenue on a constant currency basis last year, PVH is cautiously optimistic about a return to growth in 2025. The company said that sales in 2025 are likely to be steady or see slight growth, which is a relief compared to the 0.5% revenue dip analysts were predicting. Even though things slowed down a bit in February and March, overall, PVH’s brands like Calvin Klein and Tommy Hilfiger had a decent start to the year, especially over the holiday season.

Challenges: Inflation and Global Tensions

However, PVH isn’t out of the woods just yet. There are some serious global challenges the company still has to navigate. Consumers in North America—particularly in the U.S. and Canada—are feeling the pinch of inflation and economic uncertainty, which is impacting spending habits. On top of that, PVH is dealing with ongoing difficulties in China. The trade tensions between the U.S. and China continue to create problems, and PVH was recently blacklisted by China. This could lead to store closures, fines, or other financial penalties. PVH generated around 6% of its revenue from China in 2023, so any changes there could have a big impact.

Looking Ahead: What PVH is Doing to Turn Things Around

Despite the challenges, PVH is taking steps to stabilize its business. Some of its initiatives seem to be paying off, but they’ll need more time to fully take effect. There’s also a focus on cutting costs and boosting shareholder confidence, with the company planning to repurchase $500 million worth of stock in the coming months.

Though things might still be tough for PVH in the short term, the company is confident that it will navigate these challenges and see better days ahead. If 2025 brings the growth they’re hoping for, it could mean a bright future for Calvin Klein, Tommy Hilfiger, and their customers around the world.

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