The owner of Calvin Klein is experiencing increased inventory expenses as a result of tariffs.

PVH Corp. reported rising inventory costs, which affected its gross margin, with expectations of further impacts due to tariffs in the upcoming quarter. In the last quarter, inventory costs rose by 3% year-over-year, primarily driven by tariffs. PVH anticipates a $65 million unmitigated tariff impact on its FY25 earnings. While the company has started to mitigate some costs through strategic actions, it will have to absorb some this year. Despite the challenges, PVH maintains that its inventory is well-positioned for the holiday season and expects to align with its sales plan moving forward.