2026 second quarter
Filed Sep 2, 2026PVH CORP. REPORTS 2026 SECOND QUARTER RESULTS AND REAFFIRMS FULL YEAR OUTLOOK
Revenue decreased 3% to $2.097 billion and all major reportable regions except APAC declined or were nearly flat, while non-GAAP operating margin of 11.1% and non-GAAP EPS of $3.70 exceeded guidance. Profitability included a $107 million tariff-refund benefit, while GAAP results reflected a $439 million pre-tax noncash goodwill impairment charge.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 2,097.0 | – | (3.2) % |
| Revenue, constant currencynon-GAAP | (3.4) % | – | (3.4) % |
| Gross profitGAAP | $ 1,321.8 | – | – |
| Gross marginGAAP | 63.0% | – | 530 basis point increase |
| Selling, general and administrative expensesGAAP | $ 1,112.5 | – | – |
| Selling, general and administrative expensesnon-GAAP | $ 1,102.6 | – | – |
| Goodwill and other intangible asset impairmentsGAAP | $ 439.0 | – | – |
| Other gainGAAP | $ 25.4 | – | – |
| Earnings before interest and taxesGAAP | $ (190.9) | – | – |
| Earnings before interest and taxesnon-GAAP | $ 232.6 | – | – |
| Operating marginGAAP | (9.1)% | – | – |
| Operating marginnon-GAAP | 11.1% | – | – |
| Interest expense, netGAAP | $ 11.7 | – | – |
| Net (loss) incomeGAAP | $ (102.9) | – | – |
| Net incomenon-GAAP | $ 171.9 | – | – |
| Diluted net (loss) income per common shareGAAP | $ (2.23) | – | – |
| Diluted net income per common sharenon-GAAP | $ 3.70 | – | – |
| Effective tax rateGAAP | 49.2% | – | – |
| Effective tax ratenon-GAAP | 22.2% | – | – |
| Depreciation and amortization expenseGAAP | $ 57.3 | – | – |
| Depreciation and amortization expensenon-GAAP | $ 56.1 | – | – |
| InventoriesGAAP | $ 1,738.2 | – | Decreased 3% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Europe, the Middle East and Africa (“EMEA”)The decrease was primarily driven by a decline in the wholesale business. In DTC, growth in digital commerce revenue was more than offset by a decrease in stores, amid continued soft consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic impacts. | $ 986.3 | – | (5.9) % |
| AmericasA slight increase in DTC revenue was more than offset by a wholesale decline, including a shift in timing of wholesale shipments primarily in Calvin Klein, partially offset by the transition in-house of previously licensed TOMMY HILFIGER women’s product categories. | $ 680.1 | – | (0.6) % |
| Asia-Pacific (“APAC”)Constant-currency growth in DTC was partially offset by a decrease in wholesale business. | $ 343.7 | – | 2.5 % |
| LicensingThe decline reflected planned license transitions in North America, partially offset by growth in the ongoing licensing business. | $ 86.9 | – | Decreased 13% |
| Tommy HilfigerRevenue was approximately flat, reflecting an approximately 3% increase attributable to the transition in-house of previously licensed TOMMY HILFIGER women’s product categories in Americas. | $ 1,131.8 | – | (0.4) % |
| Calvin KleinThe decline reflected an approximately 4% decrease attributable to wholesale shipment timing in Americas. | $ 913.3 | – | (6.8) % |
| Owned and Operated StoresGrowth in APAC was more than offset by declines in EMEA and Americas. | $ 862.0 | – | (0.7) % |
| Owned and Operated Digital CommerceOn a constant currency basis, growth in Americas and EMEA was partially offset by a slight decline in APAC. | $ 194.1 | – | 4.0 % |
| Total Direct-to-ConsumerDTC growth was reported in both Americas and APAC, while EMEA performance improved on a constant currency basis compared to the first quarter. | $ 1,056.1 | – | 0.1 % |
| WholesaleRevenue declined in all regions. | $ 954.0 | – | (5.7) % |
Full Year 2026 and Third Quarter 2026 outlook
- RevenueFull Year 2026: approximately flat on a reported basis (decrease slightly on a constant currency basis). Third Quarter 2026: decrease low single-digits compared to the prior year period (decrease low single-digits on a constant currency basis).
- Tax rateFull Year 2026: in a range of 22% to 23% on a non-GAAP basis. Third Quarter 2026: approximately 22.0% on a non-GAAP basis.
- NoteFull Year 2026 operating margin: approximately 8.8% on a non-GAAP basis.
- NoteFull Year 2026 EPS: $11.80 to $12.10 on a non-GAAP basis.
- NoteFull Year 2026 net interest expense: approximately $70 million.
- NoteFull Year 2026 EPS projection includes an estimated positive impact of approximately $0.40 per share related to foreign currency translation.
- NoteThird Quarter 2026 operating margin: approximately 7.5% on a non-GAAP basis.
- NoteThird Quarter 2026 EPS: $2.50 to $2.65 on a non-GAAP basis.
- NoteThird Quarter 2026 net interest expense: approximately $18 million.
- NoteThird Quarter 2026 EPS projection includes an estimated positive impact of approximately $0.05 per share related to foreign currency translation.
Capital returns
- The Company did not make any common stock repurchases under the stock repurchase program during the first six months of 2026.
- The Company currently expects to repurchase at least $300 million of shares of its common stock for the full year 2026.
What drove it
- The $107 million of tariff refunds produced an approximately 510 basis point benefit to second-quarter operating margin and an approximately $1.80 per share benefit to EPS.
- Gross margin increased 530 basis points. Excluding the tariff-refund benefit, the 20 basis point increase reflected lower product costs, including a positive impact of foreign exchange, and favorable mix, partially offset by increased promotion in EMEA, increased tariff costs net of mitigation actions, and North America license transitions.
- Non-GAAP EBIT increased to $232.6 million from $178.2 million, reflecting tariff refunds partially offset by a planned increase in marketing and other brand-building investments.
- E-commerce revenue increased 4%, or 3% in constant currency, led by Americas and EMEA.
- The Company continued cost-efficiency actions while making targeted brand-building investments and expects stepped-up year-over-year marketing in the third quarter.
Concerns
- EMEA revenue decreased 6% on both a reported and constant currency basis, with soft consumer demand linked to the prolonged effects from the conflict in the Middle East and broader macroeconomic impacts.
- Wholesale revenue decreased 6% on both a reported and constant currency basis, with declines in all regions.
- Calvin Klein revenue decreased 7%, including an approximately 4% decrease attributable to wholesale shipment timing in Americas.
- GAAP EBIT was $(191) million and GAAP EPS was $(2.23), reflecting a $439 million pre-tax noncash goodwill impairment charge.
- Third-quarter non-GAAP operating margin is projected at approximately 7.5%, compared to 8.8% in the prior-year period, while non-GAAP EPS is projected at $2.50 to $2.65 compared to $2.83.
What to watch
- Execution of second-half wholesale shipments in Americas, particularly for Calvin Klein.
- Whether DTC and digital-commerce growth can offset store and wholesale pressure across regions.
- EMEA consumer demand, promotional activity and the ongoing impacts of the conflict in the Middle East.
- Completion of planned North America license transitions by the end of 2026.
- The extent to which tariff costs net of mitigation actions and the planned increase in third-quarter marketing affect margins.
- Progress toward the expectation to repurchase at least $300 million of common stock for full year 2026.
Balance sheet and cash flow
- Cash and Cash Equivalents: $ 965.9 at 8/2/26, compared to $ 248.8 at 8/3/25.
- Inventories: $ 1,738.2 at 8/2/26, compared to $ 1,791.0 at 8/3/25.
- Current Portion of Long-Term Debt: $ 11.5 at 8/2/26, compared to $ 12.8 at 8/3/25.
- Long-Term Debt: $ 2,236.5 at 8/2/26, compared to $ 2,256.0 at 8/3/25.
- Total Assets: $ 11,416.7 at 8/2/26, compared to $ 11,627.6 at 8/3/25.
- Stockholders’ Equity: $ 4,792.0 at 8/2/26, compared to $ 4,866.6 at 8/3/25.
- The Company completed the sale of the building and related assets of a Company-owned warehouse and distribution center during the second quarter of 2026.
Analysis
PVH reported second-quarter revenue of $2.097 billion, down 3% from the prior-year period and in line with its reported-basis guidance. The revenue profile remained uneven. APAC grew 3%, while Americas decreased 1%, EMEA decreased 6%, and licensing revenue decreased 13%. Digital commerce rose 4%, but total DTC was approximately flat as a 1% decline in owned and operated store revenue offset online growth. Wholesale revenue decreased 6% across all regions.
Brand performance reflected both operating demand and planned business changes. Tommy Hilfiger revenue was approximately flat, supported by the transition in-house of previously licensed TOMMY HILFIGER women’s product categories in Americas. Calvin Klein revenue decreased 7%, including an approximately 4% impact from the timing shift of Americas wholesale shipments into the second half. EMEA remained the principal demand pressure point, where wholesale declined and DTC digital growth did not offset lower store revenue amid soft consumer demand and the effects of the conflict in the Middle East.
Profitability was strong on a non-GAAP basis but materially supported by tariff refunds. Gross margin reached 63.0%, up 530 basis points, including an approximately 510 basis point benefit from $107 million of tariff refunds. Non-GAAP EBIT increased to $232.6 million from $178.2 million and non-GAAP operating margin increased to 11.1% from 8.2%. The tariff refunds also contributed approximately $1.80 per share to EPS. GAAP operating margin was (9.1)% and GAAP EPS was $(2.23), primarily reflecting the $439 million pre-tax noncash goodwill impairment charge.
PVH reaffirmed its full-year non-GAAP outlook for approximately flat reported revenue, approximately 8.8% operating margin, and EPS of $11.80 to $12.10. The outlook incorporates a planned step-up in year-over-year marketing during the third quarter, while the company continues cost actions under its Growth Driver 5 Actions. Third-quarter guidance calls for low-single-digit revenue decline, approximately 7.5% non-GAAP operating margin and non-GAAP EPS of $2.50 to $2.65, below the prior-year comparison figures cited by the company.
Capital allocation remains oriented toward buybacks, with no common stock repurchases in the first six months of 2026 but an expectation to repurchase at least $300 million for the full year. Cash and cash equivalents were $965.9 million at August 2, 2026, while long-term debt was $2,236.5 million. Investors should focus on whether second-half wholesale timing normalizes Calvin Klein sales, whether digital momentum broadens into overall DTC growth, and whether the company can sustain its full-year margin framework after the second-quarter tariff-refund benefit.
Management, verbatim
In the second quarter, we delivered revenue in line with our guidance and profitability exceeding expectations, reflecting our disciplined execution of the PVH+ Plan across our two iconic brands, Calvin Klein and TOMMY HILFIGER .
Stefan Larsson, Chief Executive Officer
Looking forward, we are reaffirming our top and bottom line outlook for the full year.
Stefan Larsson, Chief Executive Officer
For the second quarter, we delivered or exceeded our guidance across all key financial metrics.
Melissa Stone, Interim Chief Financial Officer
Not in the filing
stated, not guessed- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend declaration or payment information was not reported.
- Full Year 2026 gross margin guidance was reaffirmed but no numerical gross-margin outlook was provided.
- Full Year 2026 operating-expense guidance was not reported.
- Third Quarter 2026 gross margin guidance was not reported.
- Third Quarter 2026 operating-expense guidance was not reported.
- Prior-quarter comparisons for the reported second-quarter metrics were not reported.
- Previous-release outlook was not provided for formal comparison in vs_prior_guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.