PVH forecasts flat Q1 gross margin and FY revenue

PVH

03/06/2026 21:32

Overview
U.S. apparel maker's Q1 gross margin remained unchanged compared to last year due to the impacts of increased tariffs on goods coming into the U.S.
Co Q1 revenue increased 2%
Company now expects full-year revenue to be flat due to EMEA macro pressures

Outlook
PVH sees full-year 2026 revenue approximately flat, down from prior outlook for a slight increase
Company reaffirms full-year 2026 non-GAAP operating margin guidance of about 8.8%
PVH expects full-year 2026 non-GAAP EPS of $11.80 to $12.10

Result Drivers
DIRECT-TO-CONSUMER GROWTH - Co said Q1 growth in stores and e-commerce for Calvin Klein and Tommy Hilfiger helped drive results
EMEA WEAKNESS - Co said declines in EMEA direct-to-consumer and wholesale businesses were driven by softer demand due to prolonged Middle East conflict and broader macro effects
GROSS MARGIN - Co said gross margin reflects the impacts of increased tariffs on goods coming into the U.S., an increased promotional environment and the gross margin differential due to the transition of previously licensed women’s product categories to an in-house wholesale business

Company press release: ID:nBw6rylD7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.03 bln
$2.001 bln (12 Analysts)
Q1 EPS
 
$1.90
 
Q1 Net Income
 
$88 mln
 
Q1 EBIT
 
$124.30 mln
 
Q1 Gross Profit
 
$1.19 bln
 
Q1 Pretax Profit
 
$108.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for PVH Corp is $100.00, about 2.9% above its June 2 closing price of $97.21
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)