PVH Q2 Earnings Call Highlights

Key Points

• PVH met or exceeded its second-quarter guidance: Revenue fell 3% to the high end of guidance, while adjusted EPS reached $3.70 and operating margin was 11.1%. However, results included $107 million in tariff refunds, adding about $1.80 to EPS; excluding the refunds, operating margin was approximately 6%.
• Regional demand remained mixed: Americas revenue declined 1% and Asia-Pacific grew 3%, supported by direct-to-consumer and e-commerce strength, while EMEA revenue fell 6% due to weak consumer demand and geopolitical pressures. European wholesale remained particularly challenged, with the spring 2027 order book down mid-single digits.
• PVH reaffirmed its full-year outlook for roughly flat reported revenue, an 8.8% operating margin and adjusted EPS of $11.80–$12.10. The company also plans at least $300 million in share repurchases, identified approximately $45 million in annualized cost savings, and recorded a $439 million non-cash goodwill impairment charge.

PVH NYSE: PVH reported second-quarter 2026 revenue and profit that met or exceeded its guidance, as direct-to-consumer and e-commerce strength in the Americas and Asia-Pacific helped offset continued weakness in European wholesale markets.

Revenue declined 3% on both a reported and constant-currency basis, landing at the high end of the company’s reported guidance, according to Interim Chief Financial Officer Melissa Stone. Operating margin was 11.1% and adjusted earnings per share totaled $3.70, both ahead of expectations.

The quarter included $107 million in tariff refunds, which added approximately 510 basis points to gross margin and about $1.80 per share to earnings. Excluding the refunds, PVH said operating margin was 6% and gross margin improved about 20 basis points from a year earlier.

Regional Results Reflect Mixed Demand

Americas revenue fell 1%, while direct-to-consumer revenue increased slightly and e-commerce rose high single digits. Wholesale revenue declined low single digits, reflecting the timing of certain Calvin Klein shipments into the second half of the year, partially offset by higher Tommy Hilfiger wholesale revenue tied to licensing transitions in North America.

Asia-Pacific revenue increased 3% as reported and 1% in constant currency. Direct-to-consumer sales grew low single digits in constant currency, led by stores, while wholesale revenue declined mid-single digits as partners remained cautious. E-commerce was down slightly for the region, though PVH said it remains on track for full-year growth. China e-commerce grew mid-single digits in constant currency.

In Europe, Middle East and Africa, revenue declined 6% in reported and constant currency, as lower consumer demand and the direct and indirect effects of the conflict in the Middle East pressured the business. Direct-to-consumer sales were down low single digits in constant currency, an improvement from the first quarter, while e-commerce grew mid-single digits across both Calvin Klein and Tommy Hilfiger. Wholesale revenue fell high single digits.

Chief Executive Officer Stefan Larsson said European wholesalers remain cautious following a difficult spring season. PVH’s spring 2027 European wholesale order book is down mid-single digits, he said. The company is working with key accounts on assortments and plans to increase in-season replenishment of best-selling products.

Brands, Product Categories and Digital Engagement

Tommy Hilfiger revenue was flat, including an approximately three-percentage-point benefit from the wholesale sell-in of previously licensed women’s categories in the Americas. Excluding that transition, Tommy Hilfiger revenue declined about 3%.

Calvin Klein revenue declined 7%, including an approximately four-percentage-point impact from the timing of wholesale shipments in the Americas. Excluding the timing effect, Calvin Klein revenue also declined about 3%.

PVH said its direct-to-consumer business was supported by stronger traffic and higher average unit retail, or AUR, in key markets. Calvin Klein denim sales in direct-to-consumer channels rose double digits globally across men’s and women’s products, with women’s jeans producing double-digit AUR growth. Tommy Hilfiger’s direct-to-consumer sales benefited from double-digit sweater growth and mid-single-digit gains in shirts and polos. Linen sales rose more than 30% across regions, the company said.

Larsson highlighted the company’s marketing efforts, including a Jungkook product collaboration for Calvin Klein that generated 5 billion in social-media reach, triple-digit e-commerce traffic growth compared with the spring brand campaign, and more than 90% global sell-through. PVH also recently launched Calvin Klein denim campaigns with Tate McRae and Sadie Sink, while Tommy Hilfiger’s fall campaign features Travis Kelce.

The company has completed more than 120 store refurbishments and relocations and more than 130 store openings year to date. It also plans further investments in e-commerce, stores and shop-in-shop renovations.

Margins, Inventory and Cost Actions

Second-quarter gross margin was 63%, up 530 basis points from the prior year including the tariff refunds. Excluding those refunds, the improvement reflected lower product costs, favorable foreign exchange and channel mix, partially offset by a more promotional environment in EMEA, higher tariff costs net of mitigation efforts, and North American licensing transitions.

Inventory declined 3% from a year earlier and was lower across all regions. Stone said the company entered the fall and holiday seasons with healthy core-product levels and improved stock freshness. Inventory is expected to increase year over year in the third quarter to support wholesale shipments in the Americas that are weighted toward the second half.

PVH said it has identified approximately $45 million in annualized run-rate savings through centralized indirect procurement and enterprise-wide spending controls. A portion of the savings is expected in 2026, with full realization anticipated in 2027.

Selling, general and administrative expense increased 240 basis points to 51.9% of revenue, partly reflecting an 80-basis-point increase in marketing investment. PVH expects full-year marketing spending to rise by at least 50 basis points to about 6% of sales.

Outlook Reaffirmed

PVH reaffirmed its full-year outlook for approximately flat reported revenue and a slight constant-currency revenue decline, operating margin of about 8.8%, and adjusted EPS of $11.80 to $12.10. The outlook includes the second-quarter tariff-refund benefit.

• Third-quarter revenue is projected to decline low single digits in reported and constant currency.
• Third-quarter operating margin is expected to be about 7.5%.
• Third-quarter EPS is expected to range from $2.50 to $2.65.
• PVH expects to repurchase at least $300 million of shares and spend about $250 million on capital expenditures during 2026.

The company also recorded a $439 million non-cash goodwill impairment charge on a GAAP basis, citing changes in valuation assumptions related to geopolitical and macroeconomic factors.

PVH announced that Alexis Rollier, its incoming chief financial officer, has joined the company and is expected to lead the third-quarter earnings call with Larsson. Rollier most recently served as global CFO and COO at Sephora.

About PVH (NYSE:PVH)

PVH Corp is a leading global apparel company known for its portfolio of iconic brands in the dress shirt, sportswear and lifestyle categories. The company designs, markets and distributes clothing, accessories and fragrances under both owned and licensed brands. PVH's core brand holdings include Calvin Klein and Tommy Hilfiger, complemented by a range of heritage labels such as Van Heusen, IZOD, ARROW, Warner's and Olga.

PVH's operations span the entire value chain from product design and development to manufacturing, marketing and distribution.

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