By Sabela Ojea

PVH Chief Executive Stefan Larsson said he is positive about the company's prospects for the current fiscal year and expects a return to growth in orders for its European business.

The company also disclosed plans to buy back $500 million in stock in 2025.

The stock was up 17% to $75.43 around midday Tuesday, on pace for the largest percent increase since March 28, 2023, when it rose 20%. Shares are still down about 45% over the past 12 months.

PVH, which owns Calvin Klein and Tommy Hilfiger said late Monday that it expects revenue to be flat to up slightly in 2025, and that it will make meaningful increases in its capital return to shareholders with accelerated share repurchases.

"These actions will help us take advantage of the current valuations while accelerating our earnings per share growth even in a weaker macro backdrop," Larsson said on a call with analysts, adding that in 2025 PVH will also be well positioned to deliver another year of what it called record adjusted per-share earnings.

For the first quarter, the company expects revenue to be down 2% to flat, and adjusted earnings to range between $2.10 and $2.25 a share.

Overall, Larsson said PVH is driving higher conversion despite seeing retail traffic trends take a step down amid macroeconomic volatility, particularly in North America.

PVH's views around its turnaround are convincing UBS analysts. In a research note, UBS said the company has the brand strength and balance sheet to drive earnings growth over the long term.

"CEO Stefan Larsson is only in the middle innings of executing his plan to improve PVH's profitability and we think there are major margin unlocks that will play out over the next few years," the analysts said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

April 01, 2025 12:26 ET (16:26 GMT)

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