PVH trimmed its fiscal 2026 guidance despite a modest first quarter (Q1) revenue bump, as weak wholesale channels and softening demand in Europe, the Middle East, and Africa (EMEA) weigh on growth.
The owner of Calvin Klein and Tommy Hilfiger reported a 2% increase in revenue to $2.03bn for the period.
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On a constant-currency basis, revenue decreased 2%, indicating foreign exchange provided a benefit to the reported growth.
Performance varied by region. EMEA revenue rose 2% on a reported basis but fell 5% in constant currency, driven by declines in both direct-to-consumer and wholesale businesses.
The company attributed the weakness to softer consumer demand linked to the prolonged effects of the conflict in the Middle East and its broader macroeconomic impact.
In the Americas, revenue decreased 1% reported and 2% in constant currency, as direct-to-consumer growth was offset by lower wholesale revenue.
Revenue in Asia-Pacific (APAC) climbed 10% reported and 6% in constant currency, helped by an approximately 4% favourable impact from the timing of Lunar New Year.
By brand, Tommy Hilfiger revenue increased 3% reported but declined 2% in constant currency, while Calvin Klein revenue rose 1% reported and fell 3% in constant currency.
PVH chief executive officer Stefan Larsson said: “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. Importantly, we grew our direct-to-consumer business, with growth in stores and online across both brands.”
PVH Corp. Q1 financial performance highlights
The company saw its gross margin was unchanged at 58.6% over the quarter, with PVH attributing this to higher US import tariffs, a more promotional environment and a margin impact from bringing women’s categories in-house.
Operating margin on a GAAP basis was 6.1% in Q1 FY26, compared to a negative 16.7% in the prior year period.
Its GAAP earnings before interest and taxes (EBIT) were $124m, registering an improvement from a loss of $332m in the same period a year earlier.
Outlook for Q2 and FY26
For fiscal 2026, PVH now expects revenue to be approximately flat on a reported basis, compared with a slight increase previously, and to decrease slightly in constant currency.
The company reaffirmed its non-GAAP operating margin outlook of approximately 8.8% on a non-GAAP basis. It expects full-year non-GAAP EPS between $11.80 and $12.10, factoring in a negative tariff-related impact and positive effects from tariff refunds and foreign currency.
For the second quarter, PVH expects revenue to decline 3% to 4% and projects non-GAAP operating margin of about 9.5%, including an estimated 470-basis-point benefit from tariff refunds.
The company projects non-GAAP EPS at $3.00 to $3.10.
PVH interim chief financial officer Melissa Stone said: “For the full year, while we continue to expect growth in our Americas and APAC businesses, our EMEA performance is expected to be negatively impacted by the prolonged effects of the Middle East conflict, resulting in our now lowered full year revenue outlook.
“We are maintaining our overall operating margin guidance, as our earnings outlook now includes the benefit of tariff refunds, enabling us to absorb the prolonged effects of the Middle East conflict while continuing our planned investments.”
