PVH revises full-year outlook as Middle East conflict weighs on EMEA demand

PVH Corporation reported first-quarter 2026 total revenue of $2 billion, representing a 2 per cent increase on a reported basis but a 2 per cent decrease in constant currency. Earnings per share exceeded guidance, supported by lower tax and interest expenses, while the operating margin reached 6.5 per cent, landing at the high end of non-GAAP guidance. The company revised its full-year 2026 outlook, now forecasting flat reported revenue and a slight decrease in constant currency, down from previous expectations of slight growth.

This revision cites prolonged impacts from the Middle East conflict on EMEA wholesale demand, Turkish tourism, and broader European consumer sentiment. Despite these headwinds, PVH maintained its full-year EBIT margin guidance of approximately 8.8 per cent and EPS guidance of $11.80 to $12.10, factoring in approximately $100 million in expected tariff refunds. Direct-to-consumer revenue grew 3 per cent in constant currency, driven by mid-single-digit e-commerce growth across Calvin Klein and Tommy Hilfiger brands.

Wholesale revenue declined mid-single digits in constant currency, attributed to timing shifts and cautious partner positioning. The company noted that the conflict has created three distinct pressures: lower wholesale demand in the direct Middle East business, reduced tourism in Turkey, and broader macro effects on consumer purchasing behaviour in the EMEA region, including the impact of higher fuel costs.

In the Americas and Asia Pacific, PVH reported stronger momentum. The Americas saw low single-digit growth in direct-to-consumer channels, while Asia Pacific delivered mid-single-digit revenue growth in constant currency, supported by favourable Lunar New Year timing and strong spring performance. The company continues to invest in marketing, increasing spend by 50 basis points versus last year to target key consumer segments.

PVH expects to recognise the $100 million benefit from tariff refunds in the second quarter, which will significantly boost gross margins for that period. The company also reaffirmed its capital allocation strategy, projecting $250 million in capital spending for store and digital upgrades and maintaining a commitment to repurchase at least $300 million in shares for the full year.