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A month has gone by since the last earnings report for PVH (PVH - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is PVH due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for PVH Corp. before we dive into how investors and analysts have reacted as of late.
PVH Q1 Earnings Top Estimates, FY26 Sales Outlook CutPVH Corporation posted first-quarter fiscal 2026 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. However, the bottom line fell year over year while the top line increased.
PVH’s first-quarter 2026 results reflected continued momentum in Calvin Klein and TOMMY HILFIGER, supported by growth in direct-to-consumer sales across both stores and e-commerce, along with ongoing product innovation and stepped-up marketing.
Delving Deeper Into PVH’s Q1 PerformancePVH Corp. reported adjusted earnings of $2.01 per share, down 12.6% from the year-ago quarter's $2.30. However, the bottom line surpassed the Zacks Consensus Estimate of earnings of $1.80 per share and the company’s guidance of $1.65-$1.80
The EPS figure included the positive effect of 21 cents per share associated with the foreign currency translations.
Revenues increased 2% year over year (flat at constant currency) to $2.025 billion and beat the consensus mark of $1.997 billion.
Direct-to-consumer revenues inched up 6% compared with the prior-year period’s figure (up 3% on a constant-currency basis), buoyed by growth in the Americas and APAC, partly offset by decreases in EMEA. Revenues in PVH Corp.’s owned and operated stores were up 5%, and revenues also rose 2% in constant currency. Meanwhile, owned and operated digital commerce grew 11%, while decreasing 6% in constant currency, with declines in all the regions.
Wholesale revenues were flat from the prior-year period (down 6% on a constant-currency basis), with declines in all the regions.
PVH Corp.’s Costs & Margin DetailsThe company’s gross profit of $1.19 billion grew 2.1% year over year. However, the gross margin remained flat at 58.6% due to the higher U.S. tariffs, elevated promotional backdrop and margin differential owing to the transition of earlier-licensed women’s product categories to an in-house wholesale business. Decline was partly offset by tariff-mitigation efforts and lower product costs, comprising foreign exchange gains.
Adjusted selling, general and administrative expenses were $1.07 billion, up 5.6% year over year. The company’s adjusted earnings before interest and taxes totaled $131.2 million, down 18.3% from the prior-year quarter. It reported an adjusted operating margin of 6.5% in line e with guidance of 6.0% to 6.5%.
PVH’s Segmental AnalysisEMEA revenues increased 2% year over year to $946.1 million. However, on a constant-currency basis, revenues declined 5% due to softness in both the direct-to-consumer and wholesale businesses. The consensus estimate for EMEA revenues was pegged at $940 million.
Americas revenues declined 1% year over year to 602.9 million (down 2% on a constant-currency basis). Growth in the direct-to-consumer business was not enough to offset weaker wholesale sales. The decline in wholesale revenues was primarily due to a shift in the timing of shipments, with more wholesale deliveries expected in the second half of 2026 compared with the prior year. This was partially offset by higher sales resulting from bringing previously licensed women’s product categories in-house.
APAC revenues grew 10% year over year to 387 million, or 6% on a constant-currency basis. The constant-currency growth benefited from an approximately 4% boost related to the timing of the Lunar New Year, which fell in the first quarter of 2026 but not in the same period of 2025. Revenue growth was primarily driven by strength in the direct-to-consumer business, though this was partly offset by lower wholesale sales.
Licensing revenues fell 7% year over year to $89.1 million, mainly due to license transitions in North America.
PVH Corp.’s Brand PerformanceRevenues for the Calvin Klein segment increased 1% year over year (down 3% on a constant-currency basis).
Revenues for the Tommy Hilfiger brand rose 3% year over year (down 2% on a constant-currency basis).
Closer Look at PVH's Financial PerformancePVH Corp. ended the fiscal year with cash and cash equivalents of $592.5 million, long-term debt of $2.27 billion and stockholders’ equity of $4.89 billion. Inventories were down 5% year over year to $1.51 billion.
What to Expect From PVH in Q2 and FY26?PVH expects full-year fiscal 2026 revenues to be approximately flat on a reported basis, a step down from its prior view calling for a slight increase. On a constant-currency basis, the company now projects revenues to decrease slightly, compared with its earlier expectation of flat to slightly up.
On profitability, PVH reaffirmed its non-GAAP operating margin outlook of approximately 8.8%, flat with the non-GAAP margin delivered in fiscal 2025. The full-year margin view reflects an estimated net negative impact from U.S. tariffs, including a gross impact of about 215 basis points with a partial offset from mitigation actions, alongside an estimated positive impact of roughly 100 bps tied to tariff refunds.
PVH also reiterated its full-year fiscal 2026 non-GAAP earnings outlook of $11.80-$12.10 per share versus non-GAAP earnings of $11.40 in fiscal 2025. Management expects the fiscal 2026 earnings outlook to include an estimated gross tariff headwind of about $3.30 per share with partial mitigation, an estimated benefit of about $1.70 per share from tariff refunds and an estimated $0.40 per-share benefit from foreign currency translation. Net interest expense is projected at approximately $75 million, with the effective tax rate expected in the 22%-23% range.
PVH expects second-quarter fiscal 2026 revenues to decline 3% to 4% from the second quarter of fiscal 2025, with revenues projected to decrease 4% to 5% on a constant-currency basis.
On profitability, PVH sees a non-GAAP operating margin of about 9.5%, up from 8.2% in the year-ago period, reflecting an estimated positive impact of roughly 470 bps tied to tariff refunds. Non-GAAP earnings are projected at $3.00-$3.10 per share versus $2.52 a year ago, including an estimated $0.05 per-share benefit from foreign currency translation. Net interest expense is expected to be approximately $18 million, and the effective tax rate is projected at about 22%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 20.34% due to these changes.
VGM ScoresCurrently, PVH has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, PVH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPVH is part of the Zacks Textile - Apparel industry. Over the past month, Ralph Lauren (RL - Free Report) , a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Ralph Lauren reported revenues of $1.98 billion in the last reported quarter, representing a year-over-year change of +16.6%. EPS of $2.80 for the same period compares with $2.27 a year ago.
For the current quarter, Ralph Lauren is expected to post earnings of $4.26 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Ralph Lauren has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.