PVH 2026 Q3 Earnings Revenue Beats Expectations as Net Income Plummets 96.8%

PVH reported fiscal 2026 Q3 results on Dec 3, 2025, with revenue exceeding expectations but net income collapsing. The company narrowed full-year guidance to low single-digit revenue growth and raised non-GAAP EPS targets despite significant margin pressures.

Revenue

PVH’s total revenue rose 1.7% year-over-year to $2.29 billion, driven by strong performances across its core brands. Tommy Hilfiger generated $1.22 billion in revenue, Calvin Klein contributed $1.02 billion, while Heritage Brands added $58.4 million. The Americas and APAC regions outperformed expectations, with digital channels and DTC growth offsetting weaker EMEA performance.

Earnings/Net Income

The company’s GAAP net income plummeted to $4.2 million in Q3 2026, a 96.8% decline from $131.9 million in the prior-year period. Adjusted earnings per share (EPS) of $2.83 beat estimates but fell short of last year’s $3.03, reflecting ongoing challenges from tariffs and currency fluctuations.

Post-Earnings Price Action Review

A historical strategy of buying PVH shares on earnings release dates and holding for 30 days yielded a 20.5% cumulative return over three years, with an average quarterly gain of 6.8%. This suggests a short-term momentum effect aligned with the company’s earnings trajectory.

CEO Commentary

CEO Stefan Larsson highlighted Q3’s outperformance in revenue, operating margin, and EPS, crediting Calvin Klein’s strength in underwear and denim and Tommy Hilfiger’s lifestyle category growth. He emphasized disciplined cost management and SG&A efficiencies but cautioned about uneven consumer demand and European market challenges.

Guidance

PVH narrowed full-year reported revenue growth to low single-digits and raised non-GAAP EPS guidance to $10.85–$11.00, factoring in $1.05/share tariff impacts and $0.45/share currency benefits. Fourth-quarter revenue is projected to rise slightly, with non-GAAP EPS at $3.20–$3.35.

Additional News

1. CFO Transition: Zac Coughlin, PVH’s CFO, announced his departure to pursue opportunities outside the apparel industry, effective shortly after the Q3 earnings report.

2. Zacks Rank Downgrade: The stock received a Zacks Rank #4 (Sell) due to unfavorable earnings estimate revisions and a weak post-earnings price reaction, despite beating revenue expectations.

3. Share Price Volatility: PVH’s stock fell 6.33% after hours following the earnings release, reflecting investor concerns over margin pressures and guidance adjustments.

Key Highlights

• Revenue Beat: $2.29 billion vs. $2.28 billion estimated.

• EPS Beat: $2.83 vs. $2.56 estimated.

• Margin Pressures: Tariffs and promotions reduced non-GAAP EBIT to $202 million.

• Guidance Refinement: Full-year revenue growth capped at low single-digits; non-GAAP EPS raised to $10.85–$11.00.

PVH’s Q3 results underscore resilience in core brand performance and digital channels but highlight ongoing macroeconomic headwinds. Investors remain cautious about near-term uncertainties, including trade policy risks and inventory management challenges.