Business
Calvin Klein owner PVH sees sales slump ending in 2025
PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, anticipates a turnaround in sales by 2025, with expectations surpassing analyst estimates despite ongoing market challenges. The company’s revenue outlook—excluding currency fluctuations—outperforms the projected 0.5% decline estimated by analysts for the period. However, the forecast remains more conservative than CEO Stefan Larsson’s December projection of “modest growth” for 2025. In 2024, PVH reported a 5% drop in revenue on a constant currency basis.

PVH Stock Surges Amid Positive Outlook
Following the announcement, PVH shares soared 14% in extended trading at 4:16 p.m. in New York, signaling investor optimism. Despite a strong holiday season and a solid start to the year, sales slowed beginning in February, Larsson revealed in an interview with Bloomberg News. While March saw slight improvements, North America and China continue to present tough consumer environments.
Market Challenges in North America and China
US and Canadian consumers are grappling with inflationary pressures and declining confidence in economic stability, according to Larsson. In China, PVH faces additional hurdles due to geopolitical tensions. In February, the Chinese government blacklisted PVH as part of broader trade restrictions following tensions with the US. Beijing’s Ministry of Commerce accused PVH of actions detrimental to Chinese businesses, without providing further details.
In September, Chinese authorities launched an investigation into PVH over allegations of boycotting Xinjiang-sourced cotton. The uncertainty surrounding China’s stance on PVH has weighed heavily on the company’s stock, which has dropped nearly 40% this year. Analysts, including Citi’s Paul Lejuez, warn that PVH could face fines, store closures, or operational restrictions in China as part of potential punitive measures.
PVH Responds with Stock Buyback Plan
While Larsson declined to comment on China’s actions, he confirmed that further details would be provided during an upcoming call with analysts. PVH has previously emphasized its compliance with legal regulations in all operating regions.
China accounted for approximately 6% of PVH’s total revenue and 16% of its profit in fiscal 2023. The company projects first-quarter revenue to be flat or decline by up to 1% on a constant currency basis, a smaller drop than analysts had anticipated.
In a strategic move to bolster shareholder confidence, PVH announced plans to repurchase $500 million worth of its common stock through an accelerated share repurchase agreement in April 2025.
Looking Ahead
Despite current economic pressures, PVH remains optimistic about long-term growth, with expectations of stabilizing revenue trends by 2025. As the company navigates market fluctuations, its strategic initiatives, including stock buybacks and careful market positioning, aim to restore investor confidence and solidify its global presence.