PVH Net Income Plunges 97% Amid Impairment Charges

TL;DR

**PVH's massive impairment charge and plummeting net income signal deep-seated issues beyond just revenue growth, making it a risky bet for the near term.**

AI Summary

PVH Corp. reported a significant decline in net income for the thirteen weeks ended November 2, 2025, plummeting to $4.2 million from $131.9 million in the prior year, a decrease of 96.8%. For the thirty-nine weeks, net income also fell substantially to $183.6 million from $441.3 million, a 58.4% drop. Revenue saw a modest increase, rising 1.7% to $2,294.3 million for the thirteen-week period and 2.6% to $6,445.1 million for the thirty-nine-week period. A major factor impacting profitability was a $479.5 million goodwill and other intangible asset impairment charge recorded for the thirty-nine weeks ended November 2, 2025, which was not present in the prior year. The company also experienced a decrease in cash and cash equivalents by $589.8 million for the thirty-nine weeks, ending with $158.2 million. Strategic initiatives include focusing on Calvin Klein and Tommy Hilfiger businesses and simplifying the operating model for cost savings, alongside a plan to directly operate a significant portion of businesses previously licensed to G-III Apparel Group, Ltd.

Why It Matters

PVH's dramatic 96.8% drop in quarterly net income, largely due to a $479.5 million impairment, signals significant challenges in asset valuation and operational efficiency, directly impacting investor confidence and potential dividend stability. This performance contrasts sharply with its competitors who may be navigating similar macroeconomic headwinds more effectively. For employees, this could foreshadow further restructuring or cost-cutting measures as the company aims to simplify its operating model. Customers might see shifts in product availability or marketing as PVH focuses on its core Calvin Klein and Tommy Hilfiger brands, potentially affecting brand perception and market share in a competitive apparel landscape.

Risk Assessment

Risk Level: high — The risk level is high due to the significant $479.5 million goodwill and other intangible asset impairment charge for the thirty-nine weeks ended November 2, 2025, which directly led to a 96.8% decline in quarterly net income to $4.2 million. Furthermore, cash and cash equivalents decreased by $589.8 million, ending at $158.2 million, indicating substantial cash burn and reduced liquidity compared to $748.0 million at February 2, 2025.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to PVH given the substantial impairment charges and significant decline in net income. Await further clarity on the company's ability to execute its strategic initiatives and improve profitability before considering new positions.

Financial Highlights

revenue

$6,445.1M

total Assets

$11,421.2M

net Income

$183.6M

eps

$3.72

gross Margin

57.5%

cash Position

$158.2M

revenue Growth

+2.6%

Revenue Breakdown

Key Numbers

• $4.2M — Net income for thirteen weeks ended Nov 2, 2025 (Decreased 96.8% from $131.9M in prior year)
• $183.6M — Net income for thirty-nine weeks ended Nov 2, 2025 (Decreased 58.4% from $441.3M in prior year)
• $2,294.3M — Revenue for thirteen weeks ended Nov 2, 2025 (Increased 1.7% from $2,255.1M in prior year)
• $6,445.1M — Revenue for thirty-nine weeks ended Nov 2, 2025 (Increased 2.6% from $6,281.3M in prior year)
• $479.5M — Goodwill and other intangible asset impairments (Recorded for thirty-nine weeks ended Nov 2, 2025, zero in prior year)
• $158.2M — Cash and cash equivalents as of Nov 2, 2025 (Decreased from $748.0M as of Feb 2, 2025)
• 45,802,696 — Outstanding shares of common stock (As of December 1, 2025)
• $0.09 — Diluted net income per common share for thirteen weeks ended Nov 2, 2025 (Decreased from $2.34 in prior year)

Key Players & Entities

• PVH CORP. /DE/ (company) — Registrant
• Calvin Klein (company) — Core brand
• Tommy Hilfiger (company) — Core brand
• G-III Apparel Group, Ltd. (company) — Licensee whose operations PVH plans to revert
• New York Stock Exchange (regulator) — Exchange where PVH Common Stock and Senior Notes are registered
• U.S. Department of the Treasury's Office of Foreign Assets Control (regulator) — Issuer of Specially Designated National or Blocked Person listings
• U.S. Customs and Border Protection (regulator) — Issuer of Withhold Release Orders
• China's Ministry of Commerce (regulator) — Placed PVH on the List of Unreliable Entities

FAQ

Risk Factors

• Goodwill and Intangible Asset Impairment [high — financial]: The company recorded a significant $479.5 million impairment charge for goodwill and other intangible assets for the thirty-nine weeks ended November 2, 2025. This charge was not present in the prior year and substantially impacted net income.
• Declining Net Income [high — financial]: Net income plummeted by 96.8% to $4.2 million for the thirteen weeks ended November 2, 2025, and decreased 58.4% to $183.6 million for the thirty-nine weeks. This sharp decline, exacerbated by the impairment charge, indicates significant profitability challenges.
• Reduced Cash Position [medium — financial]: Cash and cash equivalents decreased by $589.8 million for the thirty-nine weeks ended November 2, 2025, ending at $158.2 million. This represents a substantial reduction from $748.0 million at the end of the prior fiscal year.
• Strategic Business Simplification [medium — operational]: The company is undertaking strategic initiatives to simplify its operating model for cost savings and plans to directly operate businesses previously licensed to G-III Apparel Group, Ltd. These changes carry execution risks and may impact short-term performance.
• Brand Portfolio Concentration [medium — market]: The company's focus on Calvin Klein and Tommy Hilfiger brands, while strategic, could increase vulnerability if these specific brands face market headwinds or shifts in consumer preference.

Industry Context

The global apparel industry is highly competitive, characterized by shifting consumer preferences, fast fashion cycles, and increasing pressure on margins. Companies like PVH Corp. operate within this dynamic environment, relying on strong brand recognition and efficient supply chains. Recent trends include a growing emphasis on sustainability, digital transformation, and direct-to-consumer sales channels.

Regulatory Implications

PVH Corp. must comply with various financial reporting regulations, including U.S. GAAP. The significant goodwill impairment charge may attract scrutiny from investors and analysts regarding asset valuation and management's assessment of future business prospects. Compliance with international trade and labor laws in its global operations is also a critical regulatory aspect.

What Investors Should Do

1. Monitor the impact of strategic initiatives
2. Analyze the drivers of the goodwill impairment
3. Evaluate the cash burn rate and liquidity
4. Assess the performance of core brands (Calvin Klein, Tommy Hilfiger)

Key Dates

• 2025-11-02: End of thirteen and thirty-nine week periods — Reporting period for the financial results, including significant goodwill impairment and reduced net income.
• 2025-02-02: End of fiscal year 2024 — Balance sheet date showing a higher cash position ($748.0M) prior to the significant decrease reported in the current period.
• 2024-11-03: End of thirteen and thirty-nine week periods in prior year — Comparison period for revenue and net income, showing significantly higher profitability in the prior year.

Glossary

Goodwill and other intangible asset impairments

A charge taken when the carrying value of goodwill or other intangible assets on the balance sheet is deemed to be higher than their fair value, indicating a permanent reduction in their worth. (A significant $479.5 million impairment charge was recorded, severely impacting the company's net income for the period.)

Diluted net income per common share

Net income per share after accounting for all dilutive potential common shares, such as stock options and convertible securities. (Diluted EPS dropped significantly from $7.74 in the prior year's thirty-nine week period to $3.72 in the current period.)

Equity in net income of unconsolidated affiliates

The portion of the profit or loss from investments in companies where PVH Corp. has significant influence but not control, recognized on the income statement. (This contributed positively to income before interest and taxes, though it decreased slightly compared to the prior year.)

Operating Lease Right-of-Use Assets

Assets recognized on the balance sheet representing the right to use an asset for the duration of a lease agreement, under ASC 842 accounting standards. (These assets increased significantly from $1,157.5M to $1,864.9M, indicating a substantial increase in leased assets or changes in lease accounting.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, PVH Corp. experienced a significant decline in profitability, with net income dropping by 96.8% for the thirteen weeks and 58.4% for the thirty-nine weeks, largely due to a substantial $479.5 million goodwill and intangible asset impairment charge. While revenue saw modest growth of 1.7% and 2.6% respectively, the sharp drop in net income and a significant reduction in cash and cash equivalents from $748.0 million to $158.2 million highlight considerable financial headwinds.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 par value PVH New York Stock Exchange
• $1 — holders' Equity Preferred Stock Shares $1 par Value Retained Earnings Treasury St

Filing Documents

• pvh-20251102.htm (10-Q) — 1846KB
• ex31120253q10q.htm (EX-31.1) — 9KB
• ex31220253q10q.htm (EX-31.2) — 9KB
• ex32120253q10q.htm (EX-32.1) — 6KB
• ex32220253q10q.htm (EX-32.2) — 5KB
• 0000078239-25-000090.txt ( ) — 12138KB
• pvh-20251102.xsd (EX-101.SCH) — 100KB
• pvh-20251102_cal.xml (EX-101.CAL) — 66KB
• pvh-20251102_def.xml (EX-101.DEF) — 737KB
• pvh-20251102_lab.xml (EX-101.LAB) — 1119KB
• pvh-20251102_pre.xml (EX-101.PRE) — 877KB
• pvh-20251102_htm.xml (XML) — 1998KB

-- FINANCIAL INFORMATION

PART I -- FINANCIAL INFORMATION

- Financial Statements

Item 1 - Financial Statements Consolidated Statements of Operations for the Thirteen and T hirty-Nine Weeks Ended November 2 , 2025 and November 3 , 2024 1 Consolidated Statements of Comprehensive Income for the Thirteen and Thirty-N ine Weeks Ended November 2 , 2025 and November 3 , 2024 2 Consolidated Balance Sheets as of November 2 , 2025, February 2, 2025 and November 3 , 2024 3 Consolidated Statements of Cash Flows for the Thirty-N ine Weeks Ended November 2 , 2025 and November 3 , 2024 4 Consolidated Statements of Changes in Stockholders' Equity for the Thirty-N ine Weeks Ended November 2 , 2025 and November 3 , 2024 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

- Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 34

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 50

- Controls and Procedures

Item 4 - Controls and Procedures 52

-- OTHER INFORMATION

PART II -- OTHER INFORMATION

- Legal Proceedings

Item 1 - Legal Proceedings 53

- Risk Factors

Item 1A - Risk Factors 53

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 54

- Other Information

Item 5 - Other Information 55

- Exhibits

Item 6 - Exhibits 56

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

- FINANCIAL STATEMENTS

ITEM 1 - FINANCIAL STATEMENTS PVH Corp. Consolidated Statements of Operations Unaudited (In millions, except per share data) Thirteen Weeks Ended Thirty-Nine Weeks Ended November 2, November 3, November 2, November 3, 2025 2024 2025 2024 Revenue $ 2,294.3 $ 2,255.1 $ 6,445.1 $ 6,281.3 Cost of goods sold (exclusive of depreciation and amortization) 1,001.5 938.5 2,739.8 2,520.1 Gross profit 1,292.8 1,316.6 3,705.3 3,761.2 Selling, general and administrative expenses 1,121.0 1,154.0 3,273.8 3,254.6 Goodwill and other intangible asset impairments — — 479.5 — Non-service related pension and postretirement (cost) income ( 1.0 ) 0.4 ( 2.9 ) 1.3 Other gain — 9.5 — 19.5 Equity in net income of unconsolidated affiliates 10.0 10.6 32.7 34.7 Income (loss) before interest and taxes 180.8 183.1 ( 18.2 ) 562.1 Interest expense 23.2 23.0 71.4 69.1 Interest income 2.7 6.9 11.5 16.2 Income (loss) before taxes 160.3 167.0 ( 78.1 ) 509.2 Income tax expense (benefit) 156.1 35.1 ( 261.7 ) 67.9 Net income $ 4.2 $ 131.9 $ 183.6 $ 441.3 Basic net income per common share $ 0.09 $ 2.37 $ 3.76 $ 7.83 Diluted net income per common share $ 0.09 $ 2.34 $ 3.72 $ 7.74 See accompanying notes. 1 PVH Corp. Consolidated Statements of Comprehensive Income Unaudited (In millions) Thirteen Weeks Ended Thirty-Nine Weeks Ended November 2, November 3, November 2, November 3, 2025 2024 2025 2024 Net income $ 4.2 $ 131.9 $ 183.6 $ 441.3 Other comprehensive (loss) income: Foreign currency translation adjustments ( 4.4 ) ( 22.5 ) 293.7 ( 24.6 ) Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax expense (benefit) of $ 0.7 , $ 0.2 , $( 18.8 ), and $( 2.1 ) 2.0 1.2 ( 54.0 ) ( 4.6 ) Net gain (loss) on net investment hedges, net of tax expense (benefit) of $ 1.8 , $ 2.8 , $( 45.4 ), and $( 1.6 ) 5.3 8.5 ( 136.7 ) ( 4.8 ) Total other comprehensive income (loss) 2.9 ( 12.8 ) 103.0 ( 34.0 ) Comprehensive income $ 7.1 $ 119.1 $ 286.6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL PVH Corp. and its consolidated subsidiaries (collectively, the "Company") constitute a global apparel company with a brand portfolio that includes TOMMY HILFIGER and Calvin Klein , which are owned, and Van Heusen , Nike and other brands, which the Company licenses for certain product categories. The Company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of product categories and for use in certain territories. The consolidated financial statements include all of the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company's Consolidated Statements of Operations include its proportionate share of the net income or loss of these entities. The Company's fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 and are designated by the calendar year in which the fiscal year commences. References to a year are to the Company's fiscal year, unless the context requires otherwise. The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Accordingly, they do not contain all disclosures required by U.S. GAAP for complete financial statements. Reference is made to the Company's audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the year ended February 2, 2025. The preparation of the interim financial statements in c

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