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The call presented a mixed picture: solid execution on the PVH+ plan with clear D2C and e-commerce momentum, stable gross margins despite tariff headwinds, inventory improvement and brand/campaign wins. However, material near-term headwinds from the prolonged Middle East conflict are forcing a reduced EMEA outlook, weakening wholesale demand and creating SG&A deleverage in the near term. Tariff refunds materially help the margin profile and management has reaffirmed operating margin and EPS targets, but revenue guidance was moderated and Q2 is expected to be the most impacted period. Overall, positives around underlying brand and D2C momentum are balanced by meaningful macro and channel pressures.
PVH updated 2026 guidance, now forecasting full‑year revenue approximately flat (constant currency down slightly) with an operating margin of ~8.8% and EPS of $11.80–$12.10; full‑year gross margin is expected up ~100 basis points (including an approx. $100M / ~100 bps benefit from tariff refunds to be recognized in Q2) while maintaining a blended tariff rate assumption of ~15% (≈$195M gross tariff cost, ~215 bps headwind pre‑refund). For Q2 the company guides revenue down 3–4% reported (down 4–5% CC), EPS $3.00–$3.10, gross margin up ~470 bps YoY (driven by the tariff refund) and SG&A as a percent of revenue up >300 bps (including ~100 bps higher marketing); full‑year SG&A is expected to be up ~100 bps and marketing to increase at least 50 bps to ~6% of sales. Below the line, interest expense is now expected at ~ $75M for the year (~$18M in Q2), tax guidance unchanged, capex ~ $250M and at least $300M of share repurchases planned. (For context, Q1 results underpinning the outlook included $2.0B revenue (+2% reported, -2% CC), 6.5% operating margin, EPS $2.01, 58.6% gross margin and inventory down 5% YoY.)
Delivered on guidance across key metrics for Q1 and reported EPS of $2.01, above plan. Reaffirmed full-year EPS range of $11.80 to $12.10 and maintained operating margin outlook (~8.8% full year). Q1 operating margin was 6.5% (top end of non-GAAP guidance).
Total Q1 revenue was $2.0B, up 2% reported and down 2% in constant currency. Direct-to-consumer (D2C) revenue grew (+6% reported, +3% constant currency) and e-commerce sales increased +11% reported (+6% constant currency). APAC revenue up ~6% constant currency (10% reported) with D2C up double digits in the region; Americas D2C grew low single digits.
Gross margin was 58.6%, unchanged year-over-year despite significant tariff headwinds. Q1 EBIT was $131M. EPS outperformance was aided by lower tax and interest expense. Company reaffirmed full-year operating margin target and expects gross margin to be up ~100 bps year-over-year (including tariff refund benefit).
Inventory at quarter end was down 5% versus prior year. Management cited better availability, improved on-time deliveries, healthier inventory productivity and go-to-market margins on plan for both brands.
Momentum across key categories and consumer segments: Calvin Klein D2C underwear grew mid-single digits and denim grew double digits; Tommy Hilfiger D2C sweaters and outerwear grew double digits. Successful collaborations and activations: John Cook x Calvin Klein saw 99% sell-through on Tmall and pop-up sell-outs; Travis Kelce announced as Tommy global ambassador, driving significant earned media.
Outlook includes an expected ~$100M tariff refund benefit to EBIT (to be recognized in Q2, ~100 bps benefit to full-year operating margin). Company still assumes gross tariff cost of approximately $195M (blended rate ~15%). Capital plan: ~ $250M capex and at least $300M of share repurchases for the year remain intact.
Good morning, everyone, and welcome to today's PVH First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this call may be recorded. [Operator Instructions] It is now my pleasure to turn today's program over to Cait Howard, Senior Director of Investor Relations.
Thank you, operator. Good morning, everyone, and welcome to the PVH Corp. First Quarter 2026 Earnings Conference Call. Leading the call today will be Stefan Larsson, Chief Executive Officer; and Melissa Stone, Interim Chief Financial Officer and Executive Vice President, Global Financial Planning and Analysis. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material. It may not be recorded, rebroadcast or otherwise transmitted without PVH's written permission. Your participation constitutes your consent to having anything you say appear on any transcript or replay of this call. The information to be discussed includes forward-looking statements that reflect PVH's view as of June 3, 2026, of future events and financial performance.
These statements are subject to risks and uncertainties indicated in the company's SEC filings and the safe harbor statement included in the press release that is the subject of this call. PVH does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimates regarding revenue or earnings. Generally, the financial information and projections to be discussed will be on a non-GAAP basis. as defined under SEC rules. Reconciliations to GAAP amounts are includ...
