PVH 2026 Q3 Earnings Sharp Net Income Drop Amid Revenue Growth

PVH (PVH) reported fiscal 2026 Q3 earnings on Dec 8, 2025, with total revenue rising 1.7% to $2.29 billion year-over-year, driven by strong performance across its core brands. However, the company’s net income plummeted 96.8% to $4.20 million, and its stock price declined sharply post-announcement. The earnings report included cautious guidance for flat to low single-digit Q4 revenue growth, contrasting with the revenue beat in Q3.

Revenue

PVH’s total revenue grew to $2.29 billion in Q3 2026, reflecting a 1.7% year-over-year increase. Tommy Hilfiger led with $1.22 billion in revenue, while Calvin Klein contributed $1.02 billion. The Heritage Brands segment added $58.40 million, rounding out the company’s revenue performance. These results highlight the enduring strength of PVH’s premium denim and lifestyle offerings, despite macroeconomic challenges.

Earnings/Net Income

The company’s earnings per share (EPS) dropped 96.2% to $0.09 in Q3 2026 from $2.37 in the prior year. Net income also fell sharply to $4.20 million, a 96.8% decline from $131.90 million in Q3 2025. The steep drop underscores margin pressures from supply chain bottlenecks and macroeconomic headwinds, despite revenue growth. This performance raises concerns about the sustainability of profitability in the near term.

Price Action

PVH’s stock price dropped 3.67% in the latest trading day, 12.21% for the week, and 3.98% month-to-date. The post-earnings reaction reflects investor caution over the company’s margin challenges and tempered guidance, despite the revenue beat.

Post-Earnings Price Action Review

The strategy of buying PVH when revenues beat expectations and holding for 30 days yielded a 29.48% return, significantly underperforming the benchmark’s 139.42%. With a Sharpe ratio of 0.09, the strategy offered modest returns relative to risk, while the maximum drawdown of 0% indicated no losses during the backtest period. These metrics suggest limited upside potential for traders relying on momentum-based strategies in the current environment.

CEO Commentary

PVH’s CEO emphasized progress in premium denim and brand portfolio optimization but acknowledged challenges from supply chain disruptions and macroeconomic pressures. The CEO highlighted investments in digital engagement and sustainability as priorities, expressing cautious optimism about navigating market dynamics through cost discipline and regional diversification.

Guidance

PVH reaffirmed full-year 2026 revenue growth guidance of 4-6% and EPS of $0.90-$1.05. The CEO outlined plans to accelerate digital transformation and maintain CAPEX discipline, targeting 15% incremental EBITDA from strategic investments by 2027. Qualitative goals include expanding market share in high-growth APAC regions and deepening direct-to-consumer channels.

Additional News

PVH announced a significant share repurchase program, retiring 4.78% of shares in Q3 for $167.17 million, bringing total repurchases to 64.52% of shares since 2015. The company also disclosed a CFO transition and ongoing operational challenges at Calvin Klein, which are contributing to margin pressures. These developments highlight the company’s focus on capital return and restructuring amid global tariff uncertainties and supply chain shifts.