US’ PVH posts steady Q1 despite Middle East pressures

The revenue in Q1 ended March 5, 2026, reached $2.025 billion up 2 per cent year-on-year (YoY), exceeding its guidance on a reported basis despite macroeconomic pressures and continued disruption from the Middle East conflict.

The direct-to-consumer (DTC) revenue increased 6 per cent YoY, or 3 per cent in constant currency, driven by growth across stores and ecommerce for both Calvin Klein and Tommy Hilfiger. Owned and operated digital commerce revenue rose 11 per cent YoY, while store revenue increased 5 per cent.

PVH Corp has reported Q1 FY26 revenue growth driven by stronger DTC sales across Calvin Klein and Tommy Hilfiger.
Product innovation, marketing campaigns and ecommerce investments supported performance, while APAC delivered strong growth.
However, softer consumer demand in EMEA linked to the prolonged Middle East conflict pressured outlook.
PVH maintained its operating margin guidance.

Stefan Larsson, chief executive officer of PVH Corp, said the company continued to execute its PVH+ Plan while building momentum across its core brands.

“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,” said Larsson. “Importantly, we grew our direct-to-consumer business, with growth in stores and online across both brands.”

The company posted a non-GAAP operating margin of 6.5 per cent, at the high end of its guidance range of 6.0 per cent to 6.5 per cent. Non-GAAP earnings per share (EPS) came in at $2.01, exceeding guidance of $1.65 to $1.80. Inventory declined 5 per cent YoY to $1.51 billion, PVH said in a press release.

Product innovation drives category growth at PVH

PVH said product innovation and stronger marketing campaigns supported growth in key product categories, including denim and underwear for Calvin Klein and sweaters and outerwear for Tommy Hilfiger. The company also continued investing in ecommerce capabilities and store renovations to enhance the consumer experience.

Region-wise, Europe, the Middle East and Africa (EMEA) revenue increased 2 per cent on a reported basis but declined 5 per cent in constant currency, impacted by softer consumer demand linked to the prolonged effects of the Middle East conflict and broader macroeconomic pressures.

Americas revenue declined 1 per cent YoY, while APAC revenue rose 10 per cent, supported by stronger DTC performance and a favourable Lunar New Year timing impact.

Tommy Hilfiger revenue increased 3 per cent on a reported basis, while Calvin Klein revenue rose 1 per cent.

Wholesale revenue remained flat YoY on a reported basis but declined 6 per cent in constant currency across all regions.

Gross margin remained stable at 58.6 per cent despite increased tariffs on goods entering the United States, higher promotional activity and the transition of previously licensed women’s categories to in-house wholesale operations. PVH said these pressures were partly offset by tariff mitigation actions, favourable product mix and lower sourcing costs.

PVH lowers FY26 revenue growth outlook

For FY26, PVH updated its revenue outlook and now expects revenue to remain approximately flat compared to earlier guidance for slight growth. The revised outlook reflects the prolonged impact of the Middle East conflict on the company’s EMEA business.

The company maintained its non-GAAP operating margin guidance at approximately 8.8 per cent and reaffirmed its non-GAAP EPS outlook of $11.8 to $12.1.

PVH said the updated earnings outlook includes the estimated negative impact of tariffs and Middle East-related pressures, offset partly by approximately $100 million in expected tariff refunds related to previously paid IEEPA tariffs.

Melissa Stone, interim chief financial officer of the PVH, said the company remains focused on balancing disciplined cost management with long-term investments in brand growth and digital capabilities.

The company expects second quarter (Q2) 2026 revenue to decline 3 per cent to 4 per cent YoY, while projecting non-GAAP operating margin of approximately 9.5 per cent.

Fibre2Fashion News Desk (SG)