PVH Corp.

What they do

PVH designs and markets branded sportswear, jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, handbags, accessories and footwear under owned and licensed trademarks. It operates directly in EMEA, the Americas and APAC through wholesale sales and company-operated retail stores and digital commerce, and licenses its trademarks to third parties and joint ventures for certain categories and territories. It has about 26,000 associates, operates in more than 40 countries, and reported fiscal 2025 revenue of $9.0 billion with over 70% generated outside the United States.

Revenue drivers

• EMEA — Europe, Middle East and Africa is the largest reported segment; EMEA revenue rose $210 million, or 5%, in 2025 including a $249 million positive foreign currency translation impact, while constant-currency revenue declined on lower direct-to-consumer and wholesale sales.
• Americas — Americas revenue increased $154 million, or 6%, in 2025, driven by wholesale growth partly offset by lower direct-to-consumer revenue, with wholesale helped by bringing previously licensed women's product categories in-house.
• APAC — APAC revenue fell $60 million, or 4%, in 2025, including an approximately 2% decline from Lunar New Year timing, which occurred in the first and fourth quarters of 2024 but not at all in 2025.
• Licensing — PVH licenses the TOMMY HILFIGER and Calvin Klein trademarks worldwide across product categories and territories, and licenses Van Heusen, Nike and other brands from third parties for certain product categories.

Recent performance

In the second quarter ended August 2, 2026, revenue decreased 3% to $2.097 billion, at the high end of reported guidance and better than the 4% to 5% constant-currency decline guidance. GAAP operating margin was (9.1)%, reflecting a $439 million pre-tax noncash goodwill impairment charge, while non-GAAP operating margin was 11.1% versus guidance of approximately 9.5%. E-commerce grew 4% (3% constant currency), led by Americas and EMEA, with growth across both Calvin Klein and Tommy Hilfiger. Fiscal 2025 revenue was $8.950 billion, up 3% from $8.653 billion, including a $251 million positive foreign currency translation impact, but net income fell to $25 million from $599 million after $480 million of goodwill and intangible impairment charges.

Strategy

Management is executing the multi-year PVH+ Plan, which aims to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands and make PVH the leading brand building group in its sector. Priorities include strengthening product, consumer engagement and the marketplace experience, plus a data- and demand-driven operating model. The company is stepping up cost actions while continuing brand-accretive investment, including higher year-over-year marketing in the third quarter. It also named Alexis Rollier, formerly global CFO and COO of Sephora, as its new Chief Financial Officer.

Risks

• Tariff exposure — PVH expects an approximately $195 million gross negative impact on full-year 2026 gross profit from tariffs, offset partly by mitigation actions, and says the duration and magnitude of additional tariffs are hard to predict.
• Middle East conflict — The conflict that began in March 2026 has disrupted supply chains, raised fuel and oil costs and pressured the euro, hitting wholesale demand in the direct Middle East region and consumer purchasing in Turkey and greater Europe.
• Goodwill impairment — The second quarter of 2026 included a $439 million pre-tax noncash goodwill impairment charge, and fiscal 2025 included $480 million of goodwill and other intangible asset impairments.
• Consumer demand and currency — Inflation, elevated interest rates, recession risk and foreign currency volatility are expected to keep pressuring global consumer demand for apparel, with currency translation having materially moved reported 2025 revenue.

Outlook

Management reaffirmed its full-year 2026 outlook for revenue, gross margin, operating margin and EPS on a non-GAAP basis. The outlook assumes a 15% tariff rate on goods entering the U.S. effective February 24, 2026 and does not assume refunds for tariffs previously paid, though PVH received cash refunds in the second quarter for claims it filed. The 2026 outlook excludes potential impacts from a prolonged or expanded Middle East conflict and assumes no material worsening of current conditions.