PVH Corp., the owner of the Calvin Klein and Tommy Hilfiger brands, is expecting sales growth to be flat or slightly positive this year, outpacing analysts’ expectations. 

The outlook, which excludes currency fluctuations, surpasses the average analyst estimate of a 0.5% revenue decline for the period from the previous year. It’s more cautious than the view offered by Chief Executive Officer Stefan Larsson in December, when he projected “modest growth” for 2025. Revenue decreased 5% on a constant currency basis in 2024, the company said in a statement. 

The shares jumped 14% at 4:16 p.m. in extended trading in New York. 

Calvin Klein and Tommy Hilfiger sales were good over the holidays and started the year at a solid pace, but then revenue slowed starting in February, Larsson said in an interview with Bloomberg News. 

While sales improved slightly in March, “it’s still a tougher consumer backdrop in North America and then a continued tough backdrop in the China consumer as well,” he said. 

US and Canadian consumers are facing inflationary pressure and are reporting lower confidence in their feelings about the future, Larsson added. 

In February, PVH was blacklisted by China as part of actions Beijing has taken in the escalating trade war with the US since President Donald Trump took office. China’s Ministry of Commerce in February said that PVH undertook damaging actions against Chinese companies, without elaborating. Chinese authorities said in September that PVH was being investigated for allegedly boycotting cotton sourced from the Xinjiang region. 

Shares of PVH have slumped nearly 40% this year, in part due to uncertainty over what actions China might take against the company. Citi analyst Paul Lejuez recently wrote that punishments could include fines, store closures or revoking work permits and denying workers access to the country. 

Larsson declined to comment on China’s actions against PVH and said the company would provide additional details during its call with analysts on Tuesday morning. The company has previously said it complies with laws in all countries where it operates.

PVH generated around 6% of revenue in China in fiscal 2023 and around 16% of profit.  

PVH sees revenue in its current quarter in the range of flat to down 1% from a year earlier on a constant currency basis — less than the average decline estimated by analysts surveyed by Bloomberg. 

The company also said on Monday that it plans to enter into an accelerated share repurchase agreement in April to buy $500 million shares of its common stock this year.