PVH Corp has reported better-than-expected first-quarter earnings, supported by growth in its direct-to-consumer business. 

The owner of Calvin Klein and Tommy Hilfiger generated revenue of $2.0 billion in the quarter, with direct-to-consumer revenue rising 6 per cent, driven by growth across both stores and e-commerce. 

CEO Stefan Larsson said PVH was seeing increasing momentum in both Calvin Klein and Tommy Hilfiger, particularly in the Americas and Asia-Pacific regions.

“We delivered on our plan and commitments in the first quarter, reflecting our disciplined PVH+ Plan execution and the consumer momentum we are building with our two iconic global brands, Calvin Klein and Tommy Hilfiger,” Larsson said. 

“Importantly, we grew our direct-to-consumer business, with growth in stores and online across both brands. We also grew multiple full hero categories in DTC, underwear and denim for Calvin and sweaters and outerwear for Tommy, as we scale the impact of our stronger product, cut-through campaigns and improved consumer experience.”

Despite a solid start to the year, PVH revised its full-year revenue forecast and now expects sales to remain approximately flat year over year. The company had earlier forecast low-single-digit revenue growth.

The downgrade reflects continued softness in the EMEA market, where geopolitical uncertainty and weaker consumer confidence have weighed on retail spending. PVH said it expects those pressures to persist through the remainder of the year, offsetting growth opportunities in other regions.

For the second quarter, the company expects revenue to decline by 3-4 per cent. 

“We are adjusting to the moment, while keeping our long-term approach to fueling our brand and business momentum, including growing our APAC and Americas businesses overall, fueling new consumer acquisition and e-commerce strength in all regions, and continuing to invest in our effective marketing, on our journey to build Calvin Klein and Tommy Hilfiger into their full potential,” Larsson added. 

Last month, PVH Corp finalized three changes to its executive leadership team, altering regional oversight and establishing a new corporate division focused on international licensing and expansion.