Dive Brief:
- PVH posted first quarter 2026 revenue of $2 billion, up 2% year over year, but revised its full year outlook to approximately flat, down from a previous forecast of slightly up, per a Wednesday news release. Tommy Hilfiger revenue was up 2.8% and Calvin Klein grew 1%.
- On a Thursday call with analysts, CEO Stefan Larsson said the company “did not include the prolonged effects of the Middle East conflict in our original guidance.” He said the company expects to feel the effects of the war in Iran “for the full 3-month period in the second quarter as well as through the back half of this year.”
- The company forecast a Q2 2026 revenue decline of between 3% and 4% year over year. PVH shares fell 20% to $78.16 on Thursday as a result, and subsequently the company closed the day with a $3.6 billion market cap.
Dive Insight:
PVH has been working on a turnaround for several years, with mixed results. Its strategic PVH+ Plan, announced in 2022, was intended to drive growth across its two flagship brands and improve digital and DTC profitability. The projection was a total revenue target of $12.5 billion by 2025, but the company is lagging behind that promise. In March, PVH posted a full fiscal 2025 revenue increase of 3% year over year to $8.95 billion.
Meanwhile, the company said its first quarter of 2026 was significantly impacted by the Iran war.
“[T]he prolonged effects of the Middle East conflict, now extending beyond the third month … is putting increasing pressure on our EMEA business in three ways,” Larsson said. “First, our direct Middle East business is seeing notably lower wholesale demand. Second, we have seen a knock-on effect in Turkey as reduced tourism and macro factors weigh on demand there. And third, we are seeing a broader macro effect on consumer purchasing behavior in the EMEA region, including the effects of higher fuel costs, which is leading to lower consumer sentiment and fewer drives to stores.”
First quarter revenue for EMEA increased 2%, but Larsson said PVH now expects revenue for the region, which represents nearly 47% of the company’s total revenue, “will decrease mid-single digits in constant currency versus last year.” In the Americas, revenue declined 1% for the first quarter, which the company attributed to a decrease in the wholesale business that offset direct-to-consumer growth.
In APAC, Q1 revenue increased 10% year over year, due in part to the Lunar New Year, which didn’t impact Q1 sales in 2025 due to calendar shifts. Larsson said PVH’s outlook for the Americas and APAC remained unchanged.
Meanwhile, PVH updated its tariff outlook. The forecast now assumes a negative impact from the blended rate of 15% tariff rate on goods coming into the U.S., and a positive impact from the approximately $100 million benefit to EBIT that will come from tariff refunds that weren’t calculated in the company’s previous guidance.
Nonetheless, Larsson said the only thing that has changed from last year’s Q1 to now is “the prolonged effect of the war,” adding, “we then take a prudent outlook and say we will most likely live with these effects for the rest of Q2 and the rest of the year.”
