PVH 2026 Q1 Earnings Misses Targets as Net Income Declines 129.6%

PVH Corp reported its fiscal 2026 Q1 earnings, revealing a revenue increase of 1.6% to $1.98 billion, surpassing the Zacks Consensus Estimate of $1.94 billion. However, the company posted a net loss of $44.80 million, marking a significant 129.6% decline from the previous year's net income. Adjusted earnings per share were $2.30, exceeding analyst expectations of $2.25. Despite the revenue beat, PVH revised its fiscal 2026 EPS guidance downward to a range of $10.75 to $11.00, reflecting ongoing macroeconomic challenges including tariff impacts.

Revenue

PVH reported total revenue of $1.98 billion for Q1 2026, marking a 1.6% increase from the previous year. The Tommy Hilfiger segment was the largest contributor, generating $1.05 billion. Calvin Klein followed with $886.10 million, while Heritage Brands added $49.40 million to the total revenue.

Earnings/Net Income

PVH faced a challenging quarter, swinging to a loss of $0.88 per share from a profit of $2.63 per share a year ago, marking a 133.5% negative change. The net loss of $44.80 million represents a 129.6% deterioration from last year's net income of $151.40 million. EPS performance was disappointing overall.

Price Action

The stock price of PVH dipped by 2.00% during the latest trading day, reflecting market uncertainty following the earnings release. Over the most recent full trading week, it experienced a decline of 6.70%, yet month-to-date figures showed an increase of 15.05%.

Post-Earnings Price Action Review

Investors employing the strategy of buying PVH stock when there is a revenue miss and holding for 30 days realized a notable 98.14% return, outperforming the benchmark return of 78.88%. Despite this impressive reward, the strategy involved significant risk, evidenced by a maximum drawdown of -56.23%. The Sharpe ratio stood at 0.31, reflecting the balance between risk and reward, while volatility reached 47.24%, highlighting the potential fluctuations in stock prices. These metrics illustrate a high-risk, high-reward scenario, where substantial gains can be offset by equally significant risks.

CEO Commentary

PVH Corp. CEO expressed optimism about the company's performance in the EMEA and Americas segments, noting strong revenue growth despite challenges in the APAC region. Strategic investments aimed at enhancing operational efficiency were highlighted, with a focus on executing multi-year initiatives like "Growth Driver 5 Actions" to boost market positioning. The CEO conveyed a positive outlook for ongoing progress amid external pressures.

Guidance

PVH anticipates continued revenue growth across all segments, projecting total fiscal 2024 revenue between $9.2 billion and $9.5 billion. Adjusted earnings per share are expected to range from $4.00 to $4.20. The management aims to optimize cost structures to enhance profitability while maintaining stable corporate expenses.

Additional News

In April 2025, PVH Corp. entered into accelerated share repurchase agreements totaling $500 million, aligning with its PVH+ Plan to return excess cash to shareholders. The repurchase resulted in the acquisition of approximately 5.4 million shares in Q1 2025. Furthermore, the company announced a strategic change to its reportable segments, transitioning to a region-focused structure to better align with organizational changes. This new structure includes EMEA, Americas, APAC, and Licensing segments, reflecting a shift from the previous brand-focused approach.