PVH 2026 Q3 Earnings Sharp Net Income Decline Amid Flat Revenue Growth

PVH Corp. reported third-quarter 2026 results showing $2.29 billion in revenue, up 1.7% year-over-year, but net income plummeted to $4.2 million from $131.9 million in 2025. The stock fell 12.21% in the week following the report, reflecting investor concern over margin pressures.

Revenue

PVH’s total revenue rose modestly to $2.29 billion in Q3 2026, driven by its flagship brands. Tommy Hilfiger led the revenue stream with $1.22 billion, followed by Calvin Klein, which contributed $1.02 billion. Heritage Brands rounded out the total with $58.40 million. While the overall growth was flat, the performance underscored resilience in core segments despite broader market challenges.

Earnings/Net Income

PVH’s earnings performance was notably weak, with EPS collapsing 96.2% to $0.09 and net income declining 96.8% to $4.2 million. The sharp drop highlights operational and margin pressures, including tariffs and supply chain disruptions. The earnings shortfall contrasted with revenue growth, signaling underlying profitability challenges.

Price Action

PVH’s stock price continued to underperform post-earnings, with a 3.67% decline in a single trading day and a 12.21% drop over the prior week. Month-to-date losses reached 3.98%, reflecting investor skepticism about near-term margin recovery.

Post-Earnings Price Action Review

The strategy of buying PVH when revenues beat expectations and holding for 30 days resulted in a 29.48% return, significantly underperforming the benchmark return of 139.42%. The strategy’s Sharpe ratio of 0.09 indicated modest risk-adjusted returns, while the maximum drawdown of 0% suggested it avoided losses during the backtest period.

Additional News

PVH’s ongoing share repurchase program intensified in Q3 2026, with $167.17 million allocated to repurchase 4.78% of outstanding shares under the 2015 buyback plan. This aggressive capital return, now accounting for 64.52% of shares retired since 2015, underscores management’s focus on shareholder value amid margin pressures. Meanwhile, a CFO transition and operational challenges at Calvin Klein have added uncertainty to near-term execution. The company reaffirmed its multi-year PVH+ strategy but warned of persistent tariff impacts and softness in European markets, which could prolong profitability constraints.