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    PVH
    Earnings call· May 2026(Q1 FY27)

    PVH CORP. /DE/ Q1 FY27 earnings call PVH

    Jun 4, 2026 Source

    Executive summary

    PVH Q1 FY27 — Strong D2C and E-commerce Growth Offset by EMEA Headwinds

    PVH delivered Q1 FY27 results in line with expectations, driven by strong direct-to-consumer and e-commerce performance across Calvin Klein and Tommy Hilfiger, particularly in APAC and Americas. However, the company faced significant headwinds in EMEA due to the prolonged Middle East conflict, leading to a reduced regional outlook. Overall full-year EBIT margin and EPS guidance were reaffirmed, aided by tariff refunds. The company continues to invest in marketing and consumer experience while maintaining inventory discipline.

    Highlights

    5

    • Total revenue for the quarter was $2 billion, up 2% on a reported basis, exceeding guidance.

    • Direct-to-consumer (D2C) business grew 3% in constant currency, driven by mid-single-digit e-commerce growth.

    • Gross margins were flat year-over-year at 58.6%, reflecting improvement in all regions excluding tariffs.

    • Inventory levels were down 5% versus last year, supported by improved availability and on-time deliveries.

    • EPS of $2.01 was above guidance, primarily driven by lower tax and interest expense.

    Concerns

    4

    • Constant currency revenue was down 2%, in line with expectations.

    • Wholesale revenue was down mid-single digits in constant currency due to timing and cautious partner positioning.

    • EMEA outlook was reduced due to the prolonged Middle East conflict, impacting revenue and earnings for Q2 and the back half of the year.

    • SG&A as a percent of revenue increased 160 basis points versus last year to 52.1%.

    Guidance & targets

    20
    CategoryTargetConfidence
    Full-year revenue (reported)
    approximately flat to the prior year
    high materiality
    High
    Full-year revenue (constant currency)
    down slightly
    high materiality
    High
    Full-year operating margin
    approximately 8.8%
    high materiality
    High
    Full-year EPS
    $11.80 to $12.10
    high materiality
    High
    Full-year EMEA revenue (constant currency)
    decrease mid-single digits
    medium materiality
    High
    Full-year gross margin
    up approximately 100 basis points versus last year
    high materiality
    High
    Full-year SG&A as a percentage of revenue
    up approximately 100 basis points compared to last year
    medium materiality
    High
    Full-year marketing spend as percentage of sales
    at least 50 basis points to approximately 6%
    medium materiality
    High
    Full-year interest expense
    approximately $75 million
    low materiality
    High
    Full-year capital spending
    approximately $250 million
    medium materiality
    High
    Full-year share repurchases
    at least $300 million
    high materiality
    High
    Q2 revenue (reported)
    down 3% to 4%
    high materiality
    High
    Q2 revenue (constant currency)
    down 4% to 5%
    high materiality
    High
    Q2 EMEA revenue (constant currency)
    down mid-single digits
    medium materiality
    High
    Q2 gross margin
    increase approximately 470 basis points compared to last year
    high materiality
    High
    Q2 SG&A expense as a percent of revenue
    increase over 300 basis points
    medium materiality
    High
    Q2 operating margin
    approximately 9.5%
    high materiality
    High
    Q2 EPS
    $3 to $3.10
    high materiality
    High
    Q2 tax rate
    approximately 22%
    low materiality
    High
    Q2 interest expense
    approximately $18 million
    low materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    EMEA
    Impacted by Middle East conflict, Turkey macro, and broader consumer spending. Negative shipping timing effects for wholesale.
    Direct-to-consumer revenue: declined mid-single digits in constant currencyWholesale revenue: declined mid-single digits in constant currency
    		—up 2% reported, down 5% in constant currency——
    Americas
    D2C growth offset by wholesale decline due to timing shift. Wholesale revenue partly offset by North America license transitions.
    Direct-to-consumer growth: low single-digitWholesale revenue: mid-single-digit decreaseE-commerce business: up low double digits
    		—down 1%——
    Asia Pacific
    Strong start, ahead of plan, driven by D2C. Wholesale partners cautious. Growth in China and other key markets offset by headwinds in Australia (high fuel prices, interest rates).
    Lunar New Year timing benefit: approximately 4%D2C revenue: up low teens in constant currencyWholesale revenue: declined high single digits in constant currencyChina business: strong high single-digit growth in constant currencyChina D2C: double-digit growth in stores and online
    		—up 10% reported, up 6% in constant currency——
    Licensing
    Primarily due to North America license transitions. Go-forward licensing business expected to grow over the full year.
    		—down 7%——

    Operational metrics

    32
    Marketing spend increase
    50 basis pointsversus last year
    FY27

    Strategic investment to drive brand heat.

    Store refurbishments and new openings
    140
    Q1 FY27

    Investment in shopping experience.

    Calvin Klein Underwear D2C growth
    mid-single-digit
    Q1 FY27

    Driven by product innovation and campaigns.

    Calvin Klein Denim D2C growth
    double-digit
    Q1 FY27

    Driven by product innovation and campaigns.

    Tommy Hilfiger Sweaters D2C growth
    double digits
    Q1 FY27

    Driven by product storytelling and elevated consumer journey.

    Tommy Hilfiger Outerwear D2C growth
    double digits
    Q1 FY27

    Driven by product storytelling and elevated consumer journey.

    John Cook Calvin Klein collaboration sell-through
    99%
    Q1 FY27

    Most successful Calvin collaboration to date.

    John Cook Calvin Klein collaboration sell-out
    complete sellout
    Q1 FY27

    Most successful Calvin collaboration to date.

    Americas D2C Average Unit Retail (AUR) gains
    high single digits
    Q1 FY27

    Contributed to D2C growth.

    Americas Denim growth
    up double digits
    Q1 FY27

    Benefiting from increased newness and strategic investments.

    Licensing revenue impact from North America license transitions
    down 7%
    Q1 FY27

    Primary driver for overall licensing revenue decline.

    Go-forward licensing business growth
    down 1%
    Q1 FY27

    Due to timing that will offset later in the year. Expected to grow over the full year.

    Calvin Klein revenues
    down 3%constant currency
    Q1 FY27
    Tommy Hilfiger revenues
    down 2%constant currency
    Q1 FY27
    Direct-to-consumer revenue
    up 3%constant currency
    Q1 FY27
    Retail stores sales
    up 2%constant currency
    Q1 FY27

    Driven by increases in Americas and APAC, partly offset by EMEA decline.

    E-commerce business sales
    up 6%constant currency
    Q1 FY27

    Growth in both Calvin Klein and Tommy Hilfiger and across all 3 regions.

    Total wholesale revenue
    down 6%constant currency
    Q1 FY27

    Declines in all regions.

    Gross tariff headwind
    significant
    Q1 FY27

    Gross margin unchanged despite this.

    Gross margin impact from North America license transitions
    approximately 50 basis point
    Q1 FY27

    Negative impact.

    SG&A as a percent of revenue
    52.1%increased 160 basis points versus last year
    Q1 FY27
    Marketing spend increase
    70 basis pointcompared to the first quarter of last year
    Q1 FY27

    Included in SG&A increase.

    EBIT
    $131 million
    Q1 FY27
    Interest expense
    $16 million
    Q1 FY27
    Tax rate
    approximately 19%
    Q1 FY27
    Full year blended tariff rate assumption
    approximately 15%unchanged
    FY27
    Full year gross tariff cost
    approximately $195 millionunchanged
    FY27
    Full year tariff impact on operating margin
    approximately 215 basis pointsunfavorable
    FY27

    Unchanged expectation, partly offset by mitigation actions.

    Tariff refunds benefit to EBIT
    approximately $100 million
    FY27

    Not contemplated in previous guidance. Expected to be recorded in Q2 FY27.

    Tariff refunds benefit to operating margin
    approximately 100 basis pointfavorable
    FY27

    Not contemplated in previous guidance. Expected to be recorded in Q2 FY27.

    Q2 Gross margin increase from tariff refunds
    approximately 470 basis pointscompared to last year
    Q2 FY27

    Resulting from the recognition of tariff refunds in the second quarter.

    Q2 SG&A expense increase from marketing spend
    approximately 100 basis point
    Q2 FY27

    Marketing spend is more heavily weighted to the first half to amplify campaigns.

    Industry KPIs

    11
    MetricValueDetails
    China trajectorystrong high single-digit growth in constant currency, double-digit growth in D2C, both in stores and online%
    Effective tax rateapproximately 19%%
    Inventory positiondown 5%%
    Revenue by channelDirect-to-consumer business grew 3% in constant currency, e-commerce growth in all our regions: mid-single-digit, Total wholesale revenue: down 6% in constant currency%
    Gross margin bridge58.6%%
    Revenue by geographyEMEA revenue: down 5% in constant currency, Americas revenue: down 1%, Asia Pacific revenue: up 6% in constant currency, China business: strong high single-digit growth in constant currency%
    Operating margin sg a6.5% operating margin, 52.1% SG&A as a percent of revenue%
    Store fleet door investment140units
    Share buyback capital returnat least $300 millionUSD
    Tariff cost exposure recoveryapproximately $195 million gross tariff cost, approximately $100 million benefit to EBITUSD
    Franchise product cycle performancemid-single-digit growth in global underwear, double-digit growth in denim, sweaters and outerwear, both up double digits%

    Product announcements

    6
    ProductTypeDetails
    John Cook for Calvin Klein capsule collaborationlaunch
    Calvin Klein new store conceptlaunch
    Tommy Spring campaignlaunch
    Tommy Hilfiger fan wear capsulelaunch
    Tommy Hilfiger new shop-in-shop and store conceptlaunch
    Tommy and LFC Summer of Football collectionlaunch

    Deals & partnerships

    2
    Travis Kelcepartnership

    American football icon and 3-time Super Bowl Champion as a global brand ambassador and creative collaborator. Series of campaigns starting with Fall '26 campaign.

    Macy'scustomer contract

    Launched Tommy Hilfiger women's sportswear in over 200 doors. Part of North America women's wholesale license take-back.

    Risks & headwinds

    4
    Prolonged Middle East conflictQ2 FY27 and back half of FY27

    more pronounced effect expected in the second quarter, including impacts to our wholesale business in the Middle East, to our business in Turkey as well as a broader impact to consumer spending in EMEA.

    Mitigation: Leaning into APAC and Americas momentum, fueling e-commerce, maintaining marketing, optimizing inventory.

    Challenging consumer and macroeconomic environment in EMEAQ1 FY27, expected to continue

    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.

    Mitigation: Supercharging e-commerce growth in Europe, maintaining marketing investments.

    Wholesale channel declineQ1 FY27, expected to continue in Q2 FY27 for Americas and APAC

    down mid-single digits in constant currency (Q1 FY27)

    Mitigation: Focusing on D2C growth, strengthening sell-through with key partners.

    Headwinds in AustraliaQ1 FY27, expected to continue

    lower revenue in Australia

    Mitigation: Sustaining momentum in APAC with D2C growth and disciplined marketplace execution.

    Q&A highlights

    5

    How much of the assortment is under the PVH+ Plan? How is inventory being managed to avoid markdowns given EMEA slowdown?

    Stefan highlighted significant progress in scaling the PVH+ Plan, with strong D2C growth in key categories (Calvin Klein underwear/denim, Tommy Hilfiger sweaters/outerwear). He noted inventory was down 5% due to strengthened supply chain and demand-driven approach, mitigating markdown risk.

    “inventory now is down 5%. So we feel really good about the inventory now and how we are positioned going forward.”

    asked by Jay Sole · answered by Stefan Larsson

    2 min read6 chapters

    Detailed Narrative

    01

    PVH+ Plan Execution and Momentum

    The company highlighted strong execution of its PVH+ Plan, driving momentum in Calvin Klein and Tommy Hilfiger. This included a 3% constant currency growth in D2C, mid-single-digit e-commerce growth, and significant growth in key product categories like Calvin Klein's underwear (mid-single-digit D2C growth) and denim (double-digit D2C growth), and Tommy Hilfiger's sweaters and outerwear (double-digit D2C growth). These results demonstrate the effectiveness of focusing on power consumer segments and product innovation.

    02

    EMEA Headwinds and Mitigation

    The prolonged Middle East conflict significantly impacted the EMEA business, leading to notably lower wholesale demand in the direct Middle East business, reduced tourism and macro factors in Turkey, and broader consumer purchasing behavior changes in the EMEA region. To mitigate this, PVH is leaning into momentum in APAC and Americas, fueling e-commerce strength, maintaining marketing investments, and optimizing inventory levels.

    03

    Marketing Investment and Consumer Engagement

    PVH strategically increased marketing spend by 50 basis points year-over-year, driving increased online traffic and consumer acquisition. Campaigns featuring culturally relevant talent like John Cook for Calvin Klein and Travis Kelce for Tommy Hilfiger generated significant engagement and sell-through rates, with the John Cook collaboration being the most successful to date. This approach aims to connect brand impact to conversion effectively.

    04

    Supply Chain and Inventory Management

    The company strengthened its supply chain, resulting in inventory levels down 5% year-over-year. Improvements in availability and on-time deliveries contributed to healthy inventory and on-plan margins for both brands. This disciplined inventory management is crucial in navigating challenging market conditions and avoiding significant markdowns.

    05

    Global Store and Digital Experience Enhancements

    PVH invested in elevating the shopping experience, completing over 140 refurbishments and new store openings globally in Q1. This includes new store concepts for Calvin Klein (e.g., Seoul) and Tommy Hilfiger (e.g., Herald Square, MK Stockholm), alongside continued enhancements to digital experiences and shop-in-shops.

    06

    Licensing Business Transition

    The licensing business revenue was down 7% due to the North America women's wholesale license transitions. However, the go-forward licensing business is expected to grow over the full year, with successful sell-through of the Tommy product launch in Macy's.

    AI-generated summary of the company’s earnings call. Not investment advice.