PVH (PVH) 5 Dec 242025 Q3 Earnings call transcript

Good morning, everyone, and welcome to today's PVH Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this call may be recorded and that I will be standing by should you need any assistance.

It is now my pleasure to turn today's program over to Sheryl Freeman, Senior Vice President of Investor Relations. Please go ahead.

Thank you, operator. welcome PVH and everyone, morning, to Corp. the Good

Call. call Executive today Quarter and XXXX be the Conference Earnings Officer. Financial Chief Third will Leading Stefan Coughlin, Chief Zac Officer; Larsson,

of being and webcast behalf and may otherwise rebroadcast conference be is transmitted written copyrighted This recorded without It material. PVH's call of on PVH recorded, or not consists permission.

replay having here on Your up of call. participation say this constitutes anything your you consent transcript or to any

view forward-looking These and The December in as subject to information PVH's discussed in that this events of performance. SEC includes the XXXX, financial statements risks statement the included to of call. statements the future of filings indicated harbor the company's X, reflect release be press is safe subject and and uncertainties are that

Hilfiger right plans strategies, savings head benefits as anticipated and include objectives, to company's of sale similar to and count the XXXX, reduction These announced its and expectations such ability restructuring change in and intentions August initiative the realize XXXX multiyear cost exit of the from divestitures, its PVH's assets sale retail and model. the Calvin and businesses, Heritage on apparel and menswear current simplify to Brands XXXX its Klein Tommy its women's its focus Heritage November business initiative Brands the to from intimate businesses operating and

company's will regarding as discussed X-K release. connection the on PVH www.pvh.com estimates be earnings. the earnings in are current or revenue information SEC defined the obligation rules. including update found which PVH's release with to to projections under can undertake the to included without third does in Generally, in a Form any not SEC be limitation, on furnished publicly on any report any XXXX amounts non-GAAP GAAP to Reconciliations and quarter and statement, financial be forward-looking basis

to the time, conference this pleased I'm Stefan to Larsson. At over turn

for all teams and to disciplined Sheryl, Klein brands, our world and to the Calvin call growth our Hilfiger day plan, iconic to want you do the on and expense margin the with our for our thanking thank by our morning, the life stronger-than-expected joining you, revenue delivered third work you to Through basis PVH+ around Tommy We Thank every for continue guidance we start the expansion, our strong quarter, good everyone, bring execution drove significant and globally with the I today. across two hard again drive points profitability consumer. and Plan, XXX EPS. up year-over-year discipline company. gross we brand-building of fully

was and on Consistent constant down currency. basis in plan, flat with a revenue reported direct-to-consumer X% our

quarter, And season up old As back same coming inventory with and top line. holiday have we didn't the October, come summer and into for the we both and our last less than shared last Since DXC months. season planned very came good we peak season, inventory our inventory, trends clearance now more in composition new positive season on compensate the less year. to inventory yet new have time old a out as fully of September total then, season with

basis our of of Heritage sale. Brands in a actions, the negative the proactive result a quality as declined sales on impact X% and X% wholesale, For reported of currency, excluding revenue constant X%

which is We key are forward-looking position really our improvements a sell-through in with in good partners, sequential orders. driving

everything long-term here lean for brands to also position and the we in deliver. We we do we execute, profitable continue sales now, where we business to that demonstrate in growth. to drive increasingly And our

season was which fall the One could powerful influence execution example season, XXXX product first product we fully brands. is globally for where our both

all across regions the year. for both and significantly a seeing and are full brands stronger sell-throughs product We last conversion versus higher season

the moments of regions. pleased We in we last just I'm Black share for holiday their double year Friday the important digits are earlier Thanksgiving As that than one start holiday. we and and the performance consumers across week, our to Europe all holiday up shopping is out product in saw on year, example, This plan for channels. full of an our all consumer over of most sell-throughs came

that reaffirming this 'XX towards EPS to Looking return product improved to it and can important looking sell-throughs have the for season the make combine year, the for inventory And transitions. non-GAAP now inventory levels non-GAAP see remain we building in we our drive seasonal narrowing We to see even needed well we recent take to the we both continue stronger growth of and modest European to improved with another basis. to shifts, improved blocks guidance impact ahead, XX% full DXC positioned and rate and then we margin EPS trends. in And our to we finally, growth We are revenue target. margin are brands, guidance enabled And to EBIT reflect happen. operating expect deliver step XXXX, strong a our fall out place composition long-term for which order and exchange sequentially on stronger books.

building bringing into to full and potential and with their efficiencies. chain, turn out and and clarity demand-driven investing we'll by of and further will of constant brands in driving marketing Calvin the consumer-facing supply brand keep driving within our this Tommy flywheel, the We're parts improvements the our our product, where starting building and we direction amplify the growth combined in marketplace data in

comes in quarter Jeans underwear are impact like Cotton Now cut White Starting two campaigns, talent regions. the executed how marketing with iconic Modern marketplace. Calvin the underwear, strong Bollywood campaigns Disha let amplified and The third hero drive brands actress, relevant New share These Allen from through life across brand me three transitional repeatedly Patani, denim denim offers Lee and signature in in continues K that Jeremy iconic styles, and popstar's mega and we Greta outerwear. to by in Calvin culturally our Klein. with high highlights on some that to category

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foot we holiday, coming by this SoHo, months. building to across stores consumer with global details in all social look heart sharing showcasing For in e-commerce New Skarsgård cabin today, Calvin's one locations forward strategy best building markets. and traffic talent from of here world York, brand are points as We store open the and part in to to announce more mega Calvin Jenner. brand will of Alexander the key like Klein of flagship all in a I'm touch in and amplified excited essentials you about seasonal Kendall the And that

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In most both Kids ambassadors. recently be key hero as strong GPT. very Jisoo continues global sports, K-Pop partner products engaged to a driving Superstar Tommy for the in addition, U.S. in brand iconic Formula Stray as highly and sale to X and our engagement are

holiday, style delivering on Hilfiger Idris giving. For the of spirit Richie Sofia a puts a campaign American with holiday, Damson sophistication our and starring classic and new twist

high improved our fifth delivered margin PVH+ of Now let performance, with America. significantly the region, single-digit shipments starting The decrease point on region a driven North the non-GAAP led for of Calvin in The In businesses in full-price regional a more by which the quarter combined for in wholesale, our continues sales revenue EBIT proof low on timing the a and focus digits our to profitability driving our of with in and businesses our me execution. EBIT last both Calvin turn together to tougher margin, quarter double-digit consecutive great a Tommy a clearance the with macro, Tommy single DXC less combined to quarter, year. be to and was our decline XX% basis.

expect year of low We to revenue be to digits wholesale America North XXXX. single full up compared the

current. is in icons to see the category the products for and through Fall digits, both was drive improved our offers full that DXC and traffic, October. declined cuts continue product 'XX in our double wholesale, lower continued what Within revenue too, quarter in e-commerce we strength on grew conversion consumer to BXC positive we store strong, brands improve trends style and although as our to double was performance made with digits. up refined

the We Kohler, experiences generating that of accretive step leader a full structure X as potential Donald accounts great the behind doors I'm in three growth led I'm of continue to see job CEO we a have Americas. leadership product elevate a excited unlock region. by performance CEO. All to this work President now and is profitable been growth past to PVH region's result. A regions And into excited done and promoted and Calvin Donald the has the over years, the in America. in-store outperformance to has brand brands him regional both with strong share as key of consistent North unlocking key expanded one he Klein as to role are key closely

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expect for we to be As full continue approximately from initiatives sales a quality reminder, our revenue impact of the to X%. a year,

all single improved declined offset marketing digits by performance all fall innovation, digits with performance, declines DXC our channels. For as mentioned sales up channels drove strong strong supported sellout of I by earlier, quality newness brands, across in global and stores across to our low year-over-year e-commerce in and delivery and We timing both product, actions. growth over double campaigns. due

suite focused and conversion in customer exceeding member new full The channels. targets spend increased quarter successful on acquisition, sign-ups, featured strong performance, and a driving very member across we saw engagement traffic increased all

our 'XX down in role. a well doubled further recently Building globally on H&M key the the When on growth served team about 'XX, over assortment ahead Europe this further wholesale feedback Fredrik improved shared. finalized as strengthen week, chapter. important Fredrik, at years of welcomed region. brands. On this CEO position with to as entire and will most partners, Fashion Spring the the key spent we our our as share on digits drive that with both new to size Fredrik the Monday of region's market-leading previously and who lead positive order product top XX Max who single low we Olsson, to we the next which and momentum Together partners Europe, for our improvements our the team leader continuing will across build are we was our choice sequential fall this book, look positioned CEO

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Tommy, drive with to engagement brand for bringing brands strengthening positioning across this quarter, regionally mega for Jeans and engagement our Both brand growth new to the announced strong energy Calvin We and for consumer drive New our with sustainable ambassadors talent. region. Jisoo and relevant continue continued consumer

strong activations moments consumer are have a number Looking holiday for both upcoming well for planned the ahead, where we prepared of we brands.

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third the our we for on delivered plan. closing, again quarter, In

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good morning. are are release. and comments based and Stefan, non-GAAP Thanks, My press in on reconciled our results

of our brands expense bottom due We Plan. financial disciplined an results, expense margins due As Europe last better third execution revenue. driven versus and decline leverage to of timing and higher acceleration we gross strong Stefan wholesale the the top discussed, are as by and our of line offset efficiencies. loss largely We delivered than in and shipments our of year iconic margin to of pleased with quarter PVH+ the and XX.X%, operating guidance, flat exceeded both planned in management

operating performance, Looking forward, full quarter we third following our are solid revenue our and year reaffirming guidance. margin

discuss we quarter X%. head and reflect the last to year, a shift wholesale $XX.XX X% as down range constant to quarter into EPS $XX.XX are the We small including $XX.XX in Heritage quarter from than the $XX.XX sale was inventory our in currency will third more versus for a for from was into to top full decline revenue revenue quarter, shipments as quarter the of share outlook. planned. X% in a fourth Europe due X% guidance by year impact third on to our earlier exchange basis, plan Intimates negative delivered guidance to our per end. I beating Revenue the $X.XX timing received of the On business. We the previously a the our tighten our move down from then now updating detail fourth at results and third the to quarter from

regional European was down driven by a in up events, the international conditions I to Pacific offset up currency region, third the businesses important growth previously. XX/XX slightly timing in constant for the of basis. Sales down on were in on reported better digital particularly were due Australia. a wholesale Starting Asia on euros X% to mentioned X% in shift our Asia quarter our for more basis planned early than in the China's business a were and Sales retail macro a more offset from X% by a strategic than low decision sales. in revenue due single Sales improvement which basis, by to our constant wholesale channel and which stores, in start X% challenging our up our Pacific a was were continued versus China perspective, than currency in focus quality of sequential on Sales digits XQ, our driven decline higher business

Importantly, Tommy and reflecting across driving region own for assortment DTC. digits, both our the and with up stores product are product 'XX Calvin both in stronger growth double fall our in improved and partner sell-through wholesale sell-through improved and our in

for partners. stores in e-commerce in X% business, our brand was to America, revenue trends and reduction enhancements of of was wholesale, revenue Total the as revenue quarter the we the channel X% year, communicated offset decreased were ship order of timing business revenue the the In and in of on remain from revenue line the fall in region, and QX Europe both to X% second communicated our on retail last was businesses encouraged When reflection overall the basis line explained low in in year up year, digits, a were X% sale wholesale quality wholesale Heritage mentioned, Intimates this versus by strong our trend. From shift than in start and positive operated shipped PVH basis, more shipments at North fall sequential to sales the basis Sales Stefan half constant last currency was with constant more the Last more drive a overall a in down are wholesale in this the planned direct-to-consumer including and down compared Tommy order by wholesale and year. books and wholesale revenue our timing with compare our of in the continued but Klein last sales driven currency quarter. America, expected. shipments region on flat the the in in APAC than year, and down in lower 'XX benefited the of of strategic a last QX. the the down year timing Europe. Within on the we continuing On versus The decline year, in constant for half down feedback partners is are decline constant X% basis. second year, Hilfiger reported North the drive from by remaining experience Europe the winning X%. currency half a half in well QX, we another Growth customer our of an to with with what business. perspective, timing this which single to first previously currency reduction second positioned we of and this XX/XX sites the North year that X% sales in by we will our we last a owned QX quality normalize on wholesale wholesale relatively of projection focused was in the America key higher wholesale books season. In overall year. combined within As us largely Calvin due in than in of reflects in improvement for

on basis business. down our wholesale shipments constant global down constant a that on Calvin a revenues down reported heavily down North Hilfiger Tommy Turning America on were on mentioned Klein The reported X% of X% in a and currency our weighed basis basis. timing more basis. Klein and a on currency X% X% previously I to were revenues brands. Calvin

to was half of In was higher on last points lower the XQ, XXX the focus XX.X%, sales quarter of costs. due increase product margin basis driving strong we to delivered of our and margin due gross another quality mix higher and remaining DTC increase compared year. with improvement gross to Approximately up

the we in year. realized reminder, second of beginning in improvements half a we costs that material fully As raw have anniversaried now the last

advance Our inventory year overly season. to up X% to a at was year and inventory inventory of year last end lean combination due in this selling early of the of quarter receipts levels holiday compared last

most target Additionally, these items investment having essential we to the goal of of strategically at our chose to increase support a our in products stock our time. timeless XX% in of

increase again of for $X.XX to as revenues, offset core, a and XX.X%, our $XXX due previously the line majority manage decline. XXX EBIT. importantly, due the the better year favorable an of the year the last as of timing basis as versus the mix a reduced million approximately with Importantly, XXX overall Operating Earnings have cost of percent increased improvement shift planned, compared a revenue in efficiencies gross points than by higher costs I acceleration people by planned than in vast and as EBIT planned versus versus from total, impact was point X% due year improvements exceeding the per was expense efficiencies on digits percent of basis mentioned low points and revenue wholesale than quarter million as share of to the the of earlier. more versus revenue due prior our inventory year last year earnings and to year. SG&A margin The last increased, basis guidance year in in our partially to and $X.XX, for to of of basis revenue last expenses. by offset and comprised were XQ. margin expense was quarter. In prior to by to SG&A dollars efficiencies realized while this of was XXX prudently lower SG&A deleveraging expense lower taken season down $XXX versus Notably, is the primarily accelerate expenses current have and sales increase reduce percent inventory DTC double last XX.X%, XXX we improvement points from is actions we over an we

was XX%. quarter Our tax the for rate approximately

And now the to starting moving our on quarter. with fourth outlook,

projecting fourth XXrd X% basis of sale decline to the X% and Heritage to to decline in the XXXX. year, revenue We due as a and compared a X% week constant the due business reported X% to including to X% are Intimates the X% currency prior to quarter decline on a

impacts, Excluding further we we revenue constant to those last sequential as are forecasting our two be compared currency will flat X% towards year, evidence move XXXX. of to down improvement

our impact, XXrd remaining America a decline excluding In XXrd we wholesale projecting are excluding the in single Europe, high revenue the the timing On shift line the a business, the in X% revenue down by XXrd currency, of week including digits. be is the decline in to a including a are quality wholesale I reported projected the week of sales DTC is the DTC from in In impact, mid-single revenue continued Intimates decline On with reflects week benefit basis, shipments of mid-single-digit from revenue approximately in business. The we earlier. in partially XXrd down week reported North flat constant projected XQ. sale that quarter, constant in the Heritage impact, basis, trends focus in the discussed currency wholesale, digits. projecting impact, offset the including

Sea year, shipments to mix of as negatively moderately half more points, impacts within gross the recent and U.S. increase couple wholesale and disruptions a driven XXX locations projecting environment approximately which as basis by of last margin impact well margin the year in the costs in Red are We the key in a due does our promotional China, freight than surcharges decline gross our of overall to but not sourcing the an profitability. our second

XXrd a as due to be the expect including and projecting wholesale last to compared compared last fourth shipments we operating efficiencies. Overall, region by impact flat mix to prior down costs over cost is the driven impact of is favorable efficiencies. Earnings and to week freight be the a cost basis of projected year decline our an $X.XX continued points promotional expenses $X.XX more primarily XXX in approximately decline year, leverage We decline be in I and environment partly per in loss by year, driven The of in SG&A to quarter the XX%, the XXXX. mentioned, the decline including $X.XX margin compared despite due revenue due to remaining approximately to to the point to range the of revenue XXX in share the channel decrease by percentage of the increases basis approximately offset profitability. mix, in of are to

the tax million. $XX Our XX% for projected rate is interest is estimated to expense approximately and be quarter at fourth

full together for now And bringing it all the year XXXX.

basis, go pressures. you If remain decline track back currency on the operating deliver in to and the despite margin X% to an We revenue plan. reported top commitment flat with we line that on increase XX.X% year, a of projected to our and constant at start X% approximately the to EPS both to last year

up guidance, and Tommy America the to revenue combined, full Klein relatively continue in Pacific, versus last is Europe for unchanged businesses slightly our high quarter, our year single plan we we Within expect euros. last sales for currency. Calvin be In digits constant from And sales outlook in North Asia flat to down year. Hilfiger planned be to

Our overall is freight operating in reflect margin But year more costs projection have that quarter promotional gross also guidance increase that, to for the updated the our the in and environment unchanged. within fourth the margin we us to expect an reaching increase now basis XXX rate for basis points high still XXXX, approximately points We of compared to full year previously. increase all-time earlier. mentioned gross an compared XXX to I approximately margin our

improvement fully approximately increase of drive is such, expect XXX a basis points and previously. be the And projection will change efficiencies manage offset costs for revenue as as we gross percentage SG&A, proactively of planned now in which an to SG&A, margin points approximately increase to in and continue versus by our basis an XXX

$XX We by year to SG&A than for down XXXX SG&A million approximately as revenue. Interest million increase more compared the approximately of expected DTC previously, explained full XX%. we rate plan to expect impact expense revenue be expense percentage and continue is be mix of tax the continue compared dollars to a will as our to and with in approximately $XX lower the to XXXX, projected

compared our We to guidance negative end. we the a $XX.XX to exchange are $XX.XX head $X.XX as reflect EPS and from to to into $XX.XX impact to quarter $XX.XX tighten on the fourth to top updating the previously range

continue $XXX Plan committed full deliver funding commitment on our our excess remain we $XXX PVH+ return share year. the million million to complete to buybacks completed of for total repurchases shareholders strong to the Additionally, year-to-date. our approximately cash of cash We with under to flow plan to

key Before for continue to to that regardless laser-focused relentlessly We we results our of remain the the of product, drivers executing growth sustainable full on commitments PVH+ to the up want environment. drivers consumer-facing open reiterate year and I the value it engagement long-term questions, profitable bringing deliver drive together financial marketplace growth. of engines work underlying with and deliver our consumer Plan, macro five operating we to

with up And that, questions. would to operator, open to we like it

Boss JPMorgan. will Instructions] first [Operator Matthew question Our with from come

wholesale and first, maybe could customer Stefan, on global impact both the orders? you you're assortments, at fall elaborate indicators demand for questions. for lead global X So DTC maybe product seeing

consensus what's with Street next And mid-teens then multiyear, Zac, year? comfort your the at operating XX.X% to on path margins today

see in influence PVH+. product under that you, we Matt. And across season great able really season execution what was to was both that fall product the thank first So fully was were to brands the 'XX QX

far seen channels. both all so across double-digit and regions have last improvements year So is what versus brands, sell-through we in

point, with your So DXC. to starting

the could from fall lead see the how August to we to sell-through product up So DXC trends of September. significantly improved

now last being So growth back with versus September year. October and to

wholesale same also point up increased there, and in fall that XXX in basis margin can 'XX. see very in over especially upcoming to your You the which and Europe, increased really in gross double points. Then sell-through encouraging in wholesale exciting for for the well sell-in to Europe, see rate digits bodes

So 'XX fall we off January. kicked that in

launch we in the have week when are We back January. market first

whether comment so margin for will point So leave we for out the in Europe we be at double-digit we gears Zac margin, it And what to or exact just 'XX. But I, sell see, wholesale at this the a and target starting I'll 'XX. it let Zac on -- in when in XXXX. not improvement look outlook, me to to comment on and time sell-through comes when fall share the switching to the then good really exact

we prepared shared return growth coming parts the margin in plan into I growth XXXX. take target. step place XXXX, to the on my for do we XX% as of another towards expect remarks, that that based So and our are to PVH+ in long-term operating And

more optimized on levels. key trends, coming We're So channels. driving stronger of building just all into the I inventory brands, some 'XX DXC are assortment with new the of as inventory composition, all blocks that mentioned, across sell-throughs, the regions, stronger fresher we're product both

that a quality saw off. in America, sentiment consumer few the we're despite already across holding both earlier that with In we our wholesale. Calvin APAC, much profitability. tough to action DXC a setback see improved Europe, sell-through double-digit continue own paying our sales of the Tommy we targeted and ago. exciting we Europe, deliver and macro in year this to launched North on quarters plans a in

growth but and behind not coming back then into over also you, initiatives out us towards giving growth 'XX then take target. But 'XX, efficiencies are Zac. XX% investments for the the confidence continued set to this to come another step the the So to only to with

Yes. Thanks, Stefan.

early you've the the about talk what as around I'll a we P&L look see, covered revenue, So rest sort maybe little. of of the

retain, this transition over now we we to which do For think gross to margin, more following I expect expect of the we incremental model the -- next couple last to of cycle. over years, changes improvements large a do

worth first wave one I intake think in XXXX. G-III is begins noting the of that do point

a revenue wholesale impact licensing margin time, in gross and a gross margin revenue margin approximately of points. the over not transition headwind profit and that to having is from material gross basis XXXX XX While percent

first XX begin powerfully as points that into up the more XX our year. margin, work impact as in half a half the for So gross of a continues. beyond Kitchen And of are we a first two year, for and move we've Product second the than then momentum. to the SG&A half traction basis little communicated show stronger our That bit gain brand half next global to that second expecting will the we really on

expect while had next towards do target all step net the year. full XXXX to take of that we Stefan guidance, So of PVH+ not said XX% Plan we're long-term a of providing our

to We've improvement. one XXX apologize. I make cover on off. points XXX that sure basis the to of I OpEx previously. one that want Sorry, sort just we talked about

next question Our will come Binetti from ISI. Michael Evercore with

as double-click you basis and some us through outgrowing said guidance help Klein hear to we a and And a for from picture, When flywheel, little we I or think margin there? And XXX past Zac. opening size drivers for you you brands gains early quarter and Stefan, at maybe importantly, new fourth the are are down flagship Interesting transitory look the of as that call. SoHo? are put isolate reinvesting think of think then mentioned then points? Can about first look hear What help flywheel the the Calvin a in us the of high try that connect businesses like you evolution more takes? think important will to share investments a some you initiatives to roll us I off a us you half level. some longer-term here gross bigger SoHo. category, Could gross help important next your investments flywheel brands the the you in puts flagship of on in year? help at you think Could ones in margin on comments we your second, to the the which calendar where

Yes. Thank I'll you, one. Michael. start that Maybe on

of some impact a That at gross of cost wholesale third that the little although product expected points, from fully our quarter. I work from cost was up profitability. XQ, had mix of gross our think improvements. and we've mix now DTC delivered that margin, end percent, margin and didn't half basis shipments quality about XXX strong larger as of macro that we about those than of really higher North another America reductions anniversaried sales half for better

margin specifically, to percent main had gross points we as year. earlier, Now of compared year. XQ And we XXX planned Three is this coming that. said basis drivers in to earlier than down last lower

the much in of approximately Christmas, saw shorter here earlier, The U.S. with that. see basis in mentioned the promotional Thanksgiving between that prepared off as the that XX holiday quarter. a a first, period carrying points the we and for kicking of through rest season remarks, and more impact we started Black Friday we as see We

through timing and a freight key couple temporary Second, lingering Sea see of chain Red as supply disruptions working we we're forecasting We gross points as XQ locations. are some XQ. basis increases impact. just some in as XQ, higher our modest in some that with a XX in I out the wholesale around our America then approximately. And being effect rolls lastly, from North of that back margin, mentioned on mix

So but impact we XX around basis from to that. impact no see negative margin of gross that points, profit again,

the impact predominantly is So we're of XQ seeing most it's transitory that. we that would how describe here,

it maybe so then, to And I'll over Stefan, you. turn

the Yes, or absolutely. before in margin. we of -- And part the flywheel gross of terms

set and if where we where have started we basis -- at we XXX points. PVH+ And look margin margin increased now, take alone, basis margin in Plan and XXXX gross to XXX a we gross on gross out with we points. are start we improved you if close So with step when back the

quarter-by-quarter comes it improve are systematic, a power. when on execution of repeatable super picture to direction bigger connecting our keeping flywheel the PVH+ is way, we the the disciplined So that to in and Plan and

question, And really brands. is is come current what go and to to we're to make and globally we So we incredibly everything to back Hilfiger is, Tommy Calvin what those DNA iconic in beloved that brands, the of have back each them doing and of these Klein do. your flywheel

key innovation products, sell-through leaning the the that is leads that to improvements and the seeing product such fall hero building into the flywheel the So into in exciting an 'XX. starts newness, consumer That's with adding product, double-digit why for getting categories, block. stronger, leaning

next consumer to campaigns, engagement, the shows. the block is cut-through building the Then drive the fashion

you what quite able look do. Tommy outstanding if was at it's Tommy actually Hilfiger, So to

now are Hilfiger, to closest York took -- repeatable time we to Tommy value a New we We back Fashion media of Second York went Week's Tommy way. come Xx systematic, total earned Week. take the half New Fashion back competitor. in And

more. a in we're here engagement. And then are And plays see Week I I current. the engage the it then and to and then with And all blocks, builds them Tommy global scene, shows more I engagement. at more execution, feel brands fashion potential marketplace more our I building brands. product it's these And execution, always wholesale the including our the you if store the the luxury execution. building consumer the starting consumer more. comes that the look It to all flywheel. just weeks, loved impact those products shop they Tommy's Fashion on love second, of consumer that

the it. we that allocate inventory chain relation to put the it. optimize demand. way in the having then to way the in So supply to of demand-driven way we less by building are supercharge that, plan blocks place we turn assortment, and start you starting the the then We we to And data it, out the and building buy

and behind to efficiencies. that put driving and investing then again, block in it place starting So building continuously

driving tapping we're with we it and -- So that, for love do. our and consumer brands relevance existing but the that end that more everything already that's exists into around starts flywheel in

from Sole will question with next come Our UBS. Jay

hoping you a just elaborate bit on I'm little inventory.

some some -- think early. I stuff in you you said making brought you're

made impact XX% changes? how does help did you those talk your like what and of stock on why the the the You make essential of about fourth does business? of products, And that in that mean -- and investment some time, when Can you most the just you sort quarter in essential that products. talk about like being

had us. Thanks, Inventory, we starting off when also And have we last on the important year. plan now holiday, inventory for Jay. what we than a really are composition better

And we that Zac we is are Tommy your calibrating double details continuously Calvin or to have -- out-of-stock Oxford inventory them stock. means And our coming Polo to sell-through. ambition So as sales shirts least back to last less than profitable to underwear year, we optimize sales. the year. And less at year we levels we our old. in this inventory the icons that Klein, our more digit, relating new most We're more inventory like products, last going have have shirts also have more but that relation inventory never to see the in terms, you'll style less our than but into in have in absolute or and of at inventory our less mentioned, iconic the needed XX%

that don't midyear we -- that So in the sure need journey relation inventory icons keep in down, realized that we to stock driving we this in-stock we XX% to make level. on to that that

now, supply so will increasingly into optimize. to and this into adjust is very are then demand-driven see better going and and that from lean continue holiday to when given where right spring. transition composition, But levels, well we you better we'll we what chain, data So positioned now finishing

Our next question come from with will Guggenheim. Drbul Bob

two Just questions.

materializing? North is sort trajectory first The how in an and us where see of give Can that America. progress update on just one you things you you are

with about North the the how can talk question, you inventory just are you activity following just then retail? And America, at in just inventories promotional more think

Thanks, Bob. Yes.

strengthened So have Calvin Tommy the over the let's where past you significant of and we North America have North in execution made years. in seen our improvements, X start performance America, significantly with

quarter, in So our held we macro, of our It's double-digit a fifth tough consumer backdrop. own quarter growth. tough this EBIT consecutive

well both across really to We execute brands. continue

You full more price, see with it DXC clearance. less in

even year, e-commerce up the for growth. from wholesale see are we And tougher conversion, traffic strong low when increased the digits. challenged is seeing You the macro, single

we consumers. continue see in see our when the out look brands that when we how And see consumer we America So research just -- in strong America, the strength the we with North look for at we North to we'll XXXX, build are execution.

next that just into XXXX. coming PVH+ level it's So focus

Yes.

Thank promotional pressure you, promotional Holiday. -- pressure. Sorry, Zac. sorry,

in have So year. the seen earlier this that holiday is started the we that Bob, biggest it shift,

sector, led And then and versus the the So that's led promotion there got and the increased were a shifts lot holiday early, consumer pressure. with started that industry shopping, starting early. this year, that whole the the of holiday calendar the year and to promotional last early

to are sales look back inventory more inventory promotions, in the relation fresh we at to relation and in When to we having coming -- less inventory.

So we it. about feel good

will come Wells Boruchow from question with next Fargo. Ike Our

for impact A on couple for of year. questions the mainly next me, licensing

at more just any Stefan, kind maybe Just the how to that cost? taking begin there categories fully foundation level, a of start, laid transition Just out curious level. high been high has been Is working? Has at to there in? a those

for business And P&L then from next the 'XX? is hit in you year? And follow-ups. Zac, should maybe left then much Can this how give two that revenue context to hit is for over what

is, the question then the of constant in is licenses just And with when that function really benefiting? last organically curious, and just you the licenses? I'm sorry, modest a I'm mentioned for year Or growth currency, next that is

Yes. Thanks, Ike.

product Let are me by bringing why in-house start we women's back sharing America. in our North

brands competitiveness So bringing the strength back of part control our market. of is our both securing women's product our long-term an for America North important and assortment in in

regions partners of reminder, other being execution, operate in with the a to brand control able needed win that and and all accretive distribution, improve in long-term to to pricing, as growth product sourcing, sales being world women's the in and market. we improve being the So it's to all drive already our able consumer

do the on we on are where and this to That's multiyear why rationale. the the beginning of in we're takeback are, and we strategic it. With process. we that's respect So plan preparations, the

where partners, that over the big back consumer with out -- for transition and we have in America big women's like have North we them is in value-creating a long-term we perception sustainable we opportunity the and business work. and multiple long-term And North the America, and that the men's going big Calvin incredible strength opportunity the in we both in Tommy to after. back their are lies consumer that's build then for this So transition together it growth. And why our coming take our step-by-step a women's always laid complex years,

we'll communicated wholesale wave. of And better I said then, report. not approximately more in be that back in and in portfolio to about second XX% next to as by yet. talk quarter progress think, hard licensing, to tangible have first be to as that Ike, women's a that We'll of able able question, be the come XXXX part We've position the on selling we've actually be dollars will to licensing your

quarter. So we'll next cover that

on work for have think to growth. we'll I an XXXX, idea think organic is. everybody. transition for We that as we're focused growth. to focused That's the to a where really focus on towards, to about the point, and we of unpack talk return our squarely where are a impact through we're mean, But on that and that year we pointed know I next return your P&L, will licensing organic we

to This the back Stefan for session. turn conclude question-and-answer would call I remarks. now to closing like the does

right. All

being with QX performance. So very thank our going you for through us much

look are As in is journey potential to continuing we the new wishing holiday the forward and always year, multiyear soon. on a into full we calls incredible a conversation great speak end tap everybody these we to of our brands, and the that

Thank you. Conference This you does for Quarter XXXX Earnings Call. conclude the PVH Third Thank your participation.

wonderful You may and line disconnect time, your at day. this a have