We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PVH Q1 Earnings Top Estimates, FY26 Sales Outlook Cut, Stock Down
Read MoreHide Full Article
Key Takeaways
PVH topped Q1 EPS and revenue estimates, with sales up 2% Y/Y to $2.025B.
PVH's DTC revenues rose 6% as stores grew 5% and digital commerce climbed 11%, led by Americas and APAC.
PVH cut FY26 revenue view to flat while reaffirming $11.80-$12.10 EPS amid tariff headwinds and refunds.
PVH Corporation (PVH - Free Report) posted first-quarter fiscal 2026 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. However, the bottom line fell year over year while the top line increased.
PVH’s first-quarter 2026 results reflected continued momentum in Calvin Klein and TOMMY HILFIGER, supported by growth in direct-to-consumer sales across both stores and e-commerce, along with ongoing product innovation and stepped-up marketing.
Despite exceeding first-quarter earnings and revenue expectations, PVH’s shares have fallen more than 20% in after-hours trading as the company’s reduced fiscal 2026 sales outlook overshadowed the quarterly beat. Investors appear increasingly concerned about the impact of persistent tariff headwinds, ongoing weakness in wholesale demand and slowing constant-currency sales trends across key brands and regions, raising questions about the company’s near-term growth trajectory. This Zacks Rank #3 (Hold) company’s stock has gained 49.3% in the past three months against the industry's 10.7% decline.
PVH Stock's Price Performance
Image Source: Zacks Investment Research
Delving Deeper Into PVH’s Q1 Performance
PVH Corp. reported adjusted earnings of $2.01 per share, down 12.6% from the year-ago quarter's $2.30. However, the bottom line surpassed the Zacks Consensus Estimate of earnings of $1.80 per share and the company’s guidance of $1.65-$1.80
The EPS figure included the positive effect of 21 cents per share associated with the foreign currency translations.
Revenues increased 2% year over year (flat at constant currency) to $2.025 billion and beat the consensus mark of $1.997 billion.
Direct-to-consumer revenues inched up 6% compared with the prior-year period’s figure (up 3% on a constant-currency basis), buoyed by growth in the Americas and APAC, partly offset by decreases in EMEA. Revenues in PVH Corp.’s owned and operated stores were up 5%, and revenues also rose 2% in constant currency. Meanwhile, owned and operated digital commerce grew 11%, while decreasing 6% in constant currency, with declines in all the regions.
Wholesale revenues were flat from the prior-year period (down 6% on a constant-currency basis), with declines in all the regions.
PVH Corp.’s Costs & Margin Details
The company’s gross profit of $1.19 billion grew 2.1% year over year. However, the gross margin remained flat at 58.6% due to the higher U.S. tariffs, elevated promotional backdrop and margin differential owing to the transition of earlier-licensed women’s product categories to an in-house wholesale business. Decline was partly offset by tariff-mitigation efforts and lower product costs, comprising foreign exchange gains.
Adjusted selling, general and administrative expenses were $1.07 billion, up 5.6% year over year. The company’s adjusted earnings before interest and taxes totaled $131.2 million, down 18.3% from the prior-year quarter. It reported an adjusted operating margin of 6.5% in line e with guidance of 6.0% to 6.5%.
PVH’s Segmental Analysis
EMEA revenues increased 2% year over year to $946.1 million. However, on a constant-currency basis, revenues declined 5% due to softness in both the direct-to-consumer and wholesale businesses. The consensus estimate for EMEA revenues was pegged at $940 million.
Americas revenues declined 1% year over year to 602.9 million (down 2% on a constant-currency basis). Growth in the direct-to-consumer business was not enough to offset weaker wholesale sales. The decline in wholesale revenues was primarily due to a shift in the timing of shipments, with more wholesale deliveries expected in the second half of 2026 compared with the prior year. This was partially offset by higher sales resulting from bringing previously licensed women’s product categories in-house.
APAC revenues grew 10% year over year to 387 million, or 6% on a constant-currency basis. The constant-currency growth benefited from an approximately 4% boost related to the timing of the Lunar New Year, which fell in the first quarter of 2026 but not in the same period of 2025. Revenue growth was primarily driven by strength in the direct-to-consumer business, though this was partly offset by lower wholesale sales.
Licensing revenues fell 7% year over year to $89.1 million, mainly due to license transitions in North America.
PVH Corp.’s Brand Performance
Revenues for the Calvin Klein segment increased 1% year over year (down 3% on a constant-currency basis).
Revenues for the Tommy Hilfiger brand rose 3% year over year (down 2% on a constant-currency basis).
Closer Look at PVH's Financial Performance
PVH Corp. ended the fiscal year with cash and cash equivalents of $592.5 million, long-term debt of $2.27 billion and stockholders’ equity of $4.89 billion. Inventories were down 5% year over year to $1.51 billion.
The company did not repurchase any shares in the first quarter of 2026 but still plans to buy back at least $300 million worth of its common stock in 2026.
What to Expect From PVH in Q2 and FY26?
PVH expects full-year fiscal 2026 revenues to be approximately flat on a reported basis, a step down from its prior view calling for a slight increase. On a constant-currency basis, the company now projects revenues to decrease slightly, compared with its earlier expectation of flat to slightly up.
On profitability, PVH reaffirmed its non-GAAP operating margin outlook of approximately 8.8%, flat with the non-GAAP margin delivered in fiscal 2025. The full-year margin view reflects an estimated net negative impact from U.S. tariffs, including a gross impact of about 215 basis points with a partial offset from mitigation actions, alongside an estimated positive impact of roughly 100 bps tied to tariff refunds.
PVH also reiterated its full-year fiscal 2026 non-GAAP earnings outlook of $11.80-$12.10 per share versus non-GAAP earnings of $11.40 in fiscal 2025. Management expects the fiscal 2026 earnings outlook to include an estimated gross tariff headwind of about $3.30 per share with partial mitigation, an estimated benefit of about $1.70 per share from tariff refunds and an estimated $0.40 per-share benefit from foreign currency translation. Net interest expense is projected at approximately $75 million, with the effective tax rate expected in the 22%-23% range.
PVH expects second-quarter fiscal 2026 revenues to decline 3% to 4% from the second quarter of fiscal 2025, with revenues projected to decrease 4% to 5% on a constant-currency basis.
On profitability, PVH sees a non-GAAP operating margin of about 9.5%, up from 8.2% in the year-ago period, reflecting an estimated positive impact of roughly 470 bps tied to tariff refunds. Non-GAAP earnings are projected at $3.00-$3.10 per share versus $2.52 a year ago, including an estimated $0.05 per-share benefit from foreign currency translation. Net interest expense is expected to be approximately $18 million, and the effective tax rate is projected at about 22%.
RL delivered a trailing four-quarter earnings surprise of 9.2%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 5.9% from the year-ago number.
Columbia Sportswear Company (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
PVH Q1 Earnings Top Estimates, FY26 Sales Outlook Cut, Stock Down
Key Takeaways
PVH Corporation (PVH - Free Report) posted first-quarter fiscal 2026 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. However, the bottom line fell year over year while the top line increased.
PVH’s first-quarter 2026 results reflected continued momentum in Calvin Klein and TOMMY HILFIGER, supported by growth in direct-to-consumer sales across both stores and e-commerce, along with ongoing product innovation and stepped-up marketing.
Despite exceeding first-quarter earnings and revenue expectations, PVH’s shares have fallen more than 20% in after-hours trading as the company’s reduced fiscal 2026 sales outlook overshadowed the quarterly beat. Investors appear increasingly concerned about the impact of persistent tariff headwinds, ongoing weakness in wholesale demand and slowing constant-currency sales trends across key brands and regions, raising questions about the company’s near-term growth trajectory. This Zacks Rank #3 (Hold) company’s stock has gained 49.3% in the past three months against the industry's 10.7% decline.
PVH Stock's Price Performance
Image Source: Zacks Investment Research
Delving Deeper Into PVH’s Q1 Performance
PVH Corp. reported adjusted earnings of $2.01 per share, down 12.6% from the year-ago quarter's $2.30. However, the bottom line surpassed the Zacks Consensus Estimate of earnings of $1.80 per share and the company’s guidance of $1.65-$1.80
PVH Corp. Price, Consensus and EPS Surprise
PVH Corp. price-consensus-eps-surprise-chart | PVH Corp. Quote
The EPS figure included the positive effect of 21 cents per share associated with the foreign currency translations.
Revenues increased 2% year over year (flat at constant currency) to $2.025 billion and beat the consensus mark of $1.997 billion.
Direct-to-consumer revenues inched up 6% compared with the prior-year period’s figure (up 3% on a constant-currency basis), buoyed by growth in the Americas and APAC, partly offset by decreases in EMEA. Revenues in PVH Corp.’s owned and operated stores were up 5%, and revenues also rose 2% in constant currency. Meanwhile, owned and operated digital commerce grew 11%, while decreasing 6% in constant currency, with declines in all the regions.
Wholesale revenues were flat from the prior-year period (down 6% on a constant-currency basis), with declines in all the regions.
PVH Corp.’s Costs & Margin Details
The company’s gross profit of $1.19 billion grew 2.1% year over year. However, the gross margin remained flat at 58.6% due to the higher U.S. tariffs, elevated promotional backdrop and margin differential owing to the transition of earlier-licensed women’s product categories to an in-house wholesale business. Decline was partly offset by tariff-mitigation efforts and lower product costs, comprising foreign exchange gains.
Adjusted selling, general and administrative expenses were $1.07 billion, up 5.6% year over year. The company’s adjusted earnings before interest and taxes totaled $131.2 million, down 18.3% from the prior-year quarter. It reported an adjusted operating margin of 6.5% in line e with guidance of 6.0% to 6.5%.
PVH’s Segmental Analysis
EMEA revenues increased 2% year over year to $946.1 million. However, on a constant-currency basis, revenues declined 5% due to softness in both the direct-to-consumer and wholesale businesses. The consensus estimate for EMEA revenues was pegged at $940 million.
Americas revenues declined 1% year over year to 602.9 million (down 2% on a constant-currency basis). Growth in the direct-to-consumer business was not enough to offset weaker wholesale sales. The decline in wholesale revenues was primarily due to a shift in the timing of shipments, with more wholesale deliveries expected in the second half of 2026 compared with the prior year. This was partially offset by higher sales resulting from bringing previously licensed women’s product categories in-house.
APAC revenues grew 10% year over year to 387 million, or 6% on a constant-currency basis. The constant-currency growth benefited from an approximately 4% boost related to the timing of the Lunar New Year, which fell in the first quarter of 2026 but not in the same period of 2025. Revenue growth was primarily driven by strength in the direct-to-consumer business, though this was partly offset by lower wholesale sales.
Licensing revenues fell 7% year over year to $89.1 million, mainly due to license transitions in North America.
PVH Corp.’s Brand Performance
Revenues for the Calvin Klein segment increased 1% year over year (down 3% on a constant-currency basis).
Revenues for the Tommy Hilfiger brand rose 3% year over year (down 2% on a constant-currency basis).
Closer Look at PVH's Financial Performance
PVH Corp. ended the fiscal year with cash and cash equivalents of $592.5 million, long-term debt of $2.27 billion and stockholders’ equity of $4.89 billion. Inventories were down 5% year over year to $1.51 billion.
The company did not repurchase any shares in the first quarter of 2026 but still plans to buy back at least $300 million worth of its common stock in 2026.
What to Expect From PVH in Q2 and FY26?
PVH expects full-year fiscal 2026 revenues to be approximately flat on a reported basis, a step down from its prior view calling for a slight increase. On a constant-currency basis, the company now projects revenues to decrease slightly, compared with its earlier expectation of flat to slightly up.
On profitability, PVH reaffirmed its non-GAAP operating margin outlook of approximately 8.8%, flat with the non-GAAP margin delivered in fiscal 2025. The full-year margin view reflects an estimated net negative impact from U.S. tariffs, including a gross impact of about 215 basis points with a partial offset from mitigation actions, alongside an estimated positive impact of roughly 100 bps tied to tariff refunds.
PVH also reiterated its full-year fiscal 2026 non-GAAP earnings outlook of $11.80-$12.10 per share versus non-GAAP earnings of $11.40 in fiscal 2025. Management expects the fiscal 2026 earnings outlook to include an estimated gross tariff headwind of about $3.30 per share with partial mitigation, an estimated benefit of about $1.70 per share from tariff refunds and an estimated $0.40 per-share benefit from foreign currency translation. Net interest expense is projected at approximately $75 million, with the effective tax rate expected in the 22%-23% range.
PVH expects second-quarter fiscal 2026 revenues to decline 3% to 4% from the second quarter of fiscal 2025, with revenues projected to decrease 4% to 5% on a constant-currency basis.
On profitability, PVH sees a non-GAAP operating margin of about 9.5%, up from 8.2% in the year-ago period, reflecting an estimated positive impact of roughly 470 bps tied to tariff refunds. Non-GAAP earnings are projected at $3.00-$3.10 per share versus $2.52 a year ago, including an estimated $0.05 per-share benefit from foreign currency translation. Net interest expense is expected to be approximately $18 million, and the effective tax rate is projected at about 22%.
Key Picks
Ralph Lauren Corporation (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RL delivered a trailing four-quarter earnings surprise of 9.2%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 5.9% from the year-ago number.
Columbia Sportswear Company (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.