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PVH CORP. /DE/ (PVH)·Q2 2026 Earnings Summary

Executive Summary

  • PVH delivered a clean beat in Q2 2026: revenue $2.167B (+4% reported) vs low‑single‑digit guide and non‑GAAP EPS $2.52 vs $1.85–$2.00 guidance; both exceeded Wall Street consensus, driven by stronger gross margin than planned and SG&A discipline .
  • Guidance raised for FY 2025 reported revenue (now “increase slightly to up low single‑digits”) while reaffirming non‑GAAP EPS $10.75–$11.00 and operating margin ~8.5%; FX tailwind increased to ~$0.45 vs ~$0.10 previously, while tariff headwind rose to ~$1.15/share from ~$1.05/share .
  • Q3 outlook: revenue flat to slightly up, operating margin ~8%, EPS $2.35–$2.50; gross margin down ~175 bps YoY as tariff impacts step up and marketing spend increases for brand campaigns .
  • Stock narrative catalyst: management executed brand‑led growth (Calvin underwear and denim; Tommy’s F1 halo), raised revenue outlook despite doubled tariffs, and signaled sequential gross margin stabilization with Calvin operations improving into Spring ’26 .

What Went Well and What Went Wrong

  • What Went Well

    • “We beat our guidance on both the top and bottom line,” with revenue +4% reported and non‑GAAP EBIT margin better than expected .
    • Calvin Klein momentum: men’s cotton stretch styles +14% globally after +25% in Q1; fashion denim +19% growth; halo from mega‑talent campaigns (Bad Bunny, Minu) boosting engagement and sell‑through .
    • Americas strength: revenue +11% driven by wholesale (women’s CK sportswear/jeans transition in‑house) and double‑digit EBIT margins; digital grew double‑digits, improving traffic and conversion .

  • What Went Wrong

    • Gross margin down 240 bps YoY to 57.7% on promotions, channel mix, early tariff impact (~20 bps), and Calvin shipment delays; licensing transitions accounted for ~50 bps .
    • APAC softness: revenue −3% constant currency (reported −1%) amid choppy macro, especially China, though owned digital grew and GMV outperformed in 6/18 .
    • Elevated inventory (+13% YoY) to back core product availability and Q3 sales, plus ~1% tariff impact; management plans alignment by year‑end (ex‑tariffs) .

Financial Results

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD Billions)$2.372 $1.984 $2.167
Non-GAAP EPS ($USD)$3.27 $2.30 $2.52
GAAP EPS ($USD)$2.83 $(0.88) $4.63
Gross Margin (%)58.2% 58.6% 57.7%
Operating Margin (%)10.3% 8.1% 8.2%
Inventory YoY (%)+6% +19% +13%

Actual vs S&P Global Consensus (beats in bold)

MetricQ4 2025 ConsensusQ4 2025 ActualQ1 2026 ConsensusQ1 2026 ActualQ2 2026 ConsensusQ2 2026 Actual
Revenue ($USD Billions)$2.334*$2.372 $1.935*$1.984 $2.118*$2.167
Primary EPS ($USD)$3.214*$3.27 $2.250*$2.30 $2.002*$2.52

Values retrieved from S&P Global.*

Segment and Brand Breakdown (Q2 2026)

SegmentRevenue ($USD Millions)
EMEA$1,048.5
Americas$684.0
APAC$335.2
Licensing$99.5
Total$2,167.2
BrandRevenue ($USD Millions)
Tommy Hilfiger$1,135.9
Calvin Klein$980.0
Heritage Brands$51.3
Total$2,167.2

Key Operating KPIs (Q2 2026)

KPIQ2 2026
DTC Revenue Growth (reported/constant)+4% / flat
Store Revenue Growth (reported/constant)+4% / flat
Owned E‑commerce Growth (reported/constant)+3% / flat
Wholesale Growth (reported/constant)+6% / +2%
SG&A as % of Revenue (non-GAAP)49.5%
Tax Rate (non-GAAP)~22%
Interest Expense$22M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (Reported)FY 2025Flat to slight increase Increase slightly to up low single‑digits Raised
Revenue (Constant Currency)FY 2025Flat to slight increase Flat to slight increase Maintained
Operating Margin (non-GAAP)FY 2025~8.5% ~8.5% Maintained
EPS (non-GAAP)FY 2025$10.75–$11.00 $10.75–$11.00 Maintained
FX EPS impactFY 2025+~$0.10 +~$0.45 Raised tailwind
Tariff unmitigated EPS impactFY 2025~$1.05/share ~$1.15/share Higher headwind
Interest ExpenseFY 2025~$85M ~$80M Lower
Q3 RevenueQ3 2025Flat to slight increase (down slightly CC) Flat to slight increase (down slightly CC) Maintained
Q3 Non-GAAP EPSQ3 2025$2.35–$2.50 $2.35–$2.50 Maintained
Q3 Gross Margin YoYQ3 2025—Down ~175 bps New detail
Q3 SG&A as % Revenue YoYQ3 2025—Up ~75 bps (marketing step‑up) New detail
Q3 Operating MarginQ3 2025—~8% New detail
Q3 Tax RateQ3 2025—~25% New detail
Q3 Interest ExpenseQ3 2025—~$22M New detail

Earnings Call Themes & Trends

TopicQ4 2025 (Prior)Q1 2026 (Prior)Q2 2026 (Current)Trend
Tariffs/MacroEarly Feb softness NA; China revenue step‑down; planning FY EPS with ASR; gross margin down in 4Q on freight/promo Tariff headwind ~$1.05/share; more promotional environment; China unreliable entity list acknowledged Tariff rates effectively doubled; Q3 GM down ~175 bps; FY tariff impact ~$1.15/share Headwinds intensified in 2H; mitigation actions underway
Supply Chain/OperationsCalvin global product kitchen setup; temporary margin headwinds in 1H ’25; improvements for Fall ’25/Spring ’26 Calvin operational challenges driving discounts; sequential improvement expected “Stabilize” Calvin; go‑in margin improvements locked for Spring ’26; on‑time deliveries regained Improving sequentially
Technology/IT EfficiencyConsolidating tech stack to single global systems; tens of millions in annual savings planned SG&A leverage actions continue; target 200–300 bps OM expansion over time Growth Driver 5 savings drove SG&A % improvement to 49.5% in Q2 Cost savings scaling into 4Q and 2026
Product PerformanceCalvin underwear/denim halo with global talent; Tommy lifestyle/F1 capsule CK Icon Cotton Stretch +25% (Q1); CK fashion denim +14%; Tommy resort campaign CK cotton stretch +14%; fashion denim +19%; Tommy Apex GP collection strong sell‑through; formula‑one film tie‑in Sustained brand‑led growth
Regional TrendsEurope DTC store growth; Fall ’25 order books back to growth EMEA +4% CC; Americas wholesale strength; APAC −11% CC (LNY timing, China) Europe DTC up; EMEA CC revenue down −3% on wholesale timing; Americas +11%; APAC −3% CC, stabilization Europe improving; Americas strong; APAC stabilizing
Regulatory/LegalMOFCOM “Unreliable Entity” list; long‑term China commitment Continued engagement with MOFCOM; long‑term China focus No new legal updates; China macro remains choppy Monitoring

Management Commentary

  • “We beat our guidance on both the top and bottom line… grew revenue 4% on a reported basis… and drove better than expected gross margin performance and EBIT margins.” — Stefan Larsson, CEO .
  • “Operating margin was 8.2%… EPS was $2.52 reflecting a negative impact of $0.06 related to tariffs and a positive impact of $0.16 related to exchange.” — Zac Coughlin, CFO .
  • “Tariffs… have effectively doubled… we expect to mitigate some of these costs… and fully mitigate the impact over time.” — Zac Coughlin, CFO .
  • “Sales of our cotton stretch styles were up 14% globally in the quarter… fashion denim delivered 19% growth.” — Stefan Larsson, CEO .
  • “We again drove double digit EBIT margins [in the Americas]… with strong growth in our digital channels.” — Stefan Larsson, CEO .

Q&A Highlights

  • Marketing and SG&A: Management will lean into full‑funnel campaigns (Calvin underwear and women’s launch; Tommy fall lifestyle) while Q3 SG&A will temporarily deleverage from increased marketing before re‑leveraging in Q4 with Growth Driver 5 savings (~200 bps by year‑end) .
  • Tariffs trajectory: CFO expects mitigation percentage lower in 2025 given rate step‑ups, but levers include supply chain efficiencies, calibrated pricing, and discount reductions; outlets traffic sequentially improved from Q1 to Q2 .
  • Calvin operations: On Spring ’26, “we have already secured the go‑in margin improvements… and we are on time for deliveries,” resolving transitory issues from centralizing NY product creation .
  • DTC trends: North America DTC sequentially improved on product strength, expanded mid‑funnel marketing, and stronger new/retained/reactivated consumer cohorts .
  • Wholesale environment: Normalization of shipment timing in 2025 with first‑half weighting more balanced vs 2024; growth concentrated with full‑price partners .

Estimates Context

  • PVH beat S&P Global consensus in Q2 2026 on revenue ($2.167B vs $2.118B*) and EPS ($2.52 vs $2.00*), after beats in Q4 2025 and Q1 2026 as well .
  • Consensus trajectory for forward quarters remains conservative given tariff headwinds and planned marketing investments, but sequential margin stabilization and Europe order book growth into Fall ’25 may support estimate revisions for 2H if execution holds .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Q2 print was a clear beat vs guidance and consensus, with brand execution offsetting macro; management raised reported revenue outlook despite doubled tariffs, a positive signal for demand resilience .
  • Near‑term gross margin pressure (Q3 down ~175 bps YoY) should improve sequentially into Q4 as Calvin operations stabilize and tariff mitigation scales; SG&A savings re‑lever in Q4, supporting higher 4Q OM vs 2024 .
  • Americas remains a profit engine (double‑digit EBIT margins) aided by in‑house CK women’s transition and digital strength; watch wholesale sell‑through and shipment timing normalization in Q3 .
  • Europe inflecting: DTC store growth and Fall ’25 order books up low single digits suggest sustained recovery; this is a key driver of H2 improvement .
  • APAC is stabilizing but choppy; China remains a headwind—position size should reflect uncertainty until consistent DTC traction emerges .
  • Narrative catalysts: Calvin women’s underwear launch, Tommy F1 halo (movie and Cadillac partnership), flagship openings (Tokyo Harajuku, upcoming SoHo NY) underpin traffic and brand heat through H2 .
  • Trading setup: Expect marketing‑driven expense step‑up in Q3 with H2 margin recovery; sustained execution could prompt upward estimate revisions for late‑year quarters.