Fashion conglomerate PVH (NYSE:PVH) met Wall Streets revenue expectations in Q3 CY2025, with sales up 1.7% year on year to $2.29 billion. Its non-GAAP profit of $2.83 per share was 11.4% above analysts’ consensus estimates.
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PVH (PVH) Q3 CY2025 Highlights:
- Revenue: $2.29 billion vs analyst estimates of $2.28 billion (1.7% year-on-year growth, in line)
- Adjusted EPS: $2.83 vs analyst estimates of $2.54 (11.4% beat)
- Adjusted EBITDA: $250.2 million vs analyst estimates of $252.3 million (10.9% margin, 0.8% miss)
- Management slightly raised its full-year Adjusted EPS guidance to $10.93 at the midpoint
- Operating Margin: 7.9%, in line with the same quarter last year
- Constant Currency Revenue was flat year on year (-5.9% in the same quarter last year)
- Market Capitalization: $4.08 billion
Company Overview
Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, PVH’s sales grew at a weak 2.9% compounded annual growth rate over the last five years. This was below our standards and is a rough starting point for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. PVH’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.2% annually. 
We can better understand the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 2.6% year-on-year declines. Because this number aligns with its normal revenue growth, we can see that PVH has properly hedged its foreign currency exposure. 
This quarter, PVH grew its revenue by 1.7% year on year, and its $2.29 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
PVH’s operating margin has been trending down over the last 12 months and averaged 6.3% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, PVH generated an operating margin profit margin of 7.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
PVH’s EPS grew at an astounding 105% compounded annual growth rate over the last five years, higher than its 2.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q3, PVH reported adjusted EPS of $2.83, down from $3.03 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects PVH’s full-year EPS of $10.92 to grow 7.7%.
Key Takeaways from PVH’s Q3 Results
It was good to see PVH beat analysts’ EPS expectations this quarter. On the other hand, its EPS guidance for next quarter missed and its constant currency revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 2.7% to $85.25 immediately after reporting.
Big picture, is PVH a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.