PVH 2026 Q3 Earnings Sharp Net Income Drop Amid Revenue Growth

PVH (PVH) reported fiscal 2026 Q3 earnings on Dec 08th, 2025. The company posted revenue growth but faced a significant decline in profitability, with net income plummeting 96.8% year-over-year. Guidance for the upcoming quarter was adjusted to flat to low single-digit revenue growth, reflecting ongoing operational and macroeconomic challenges.

Revenue

PVH’s total revenue rose 1.7% to $2.29 billion in 2026 Q3, driven by strong performance across its core segments. Tommy Hilfiger and Calvin Klein were the top contributors, generating $1.22 billion and $1.02 billion respectively. The Heritage Brands segment added $58.40 million, rounding out the total revenue. This growth contrasted with the prior year’s $2.26 billion, underscoring resilience in key markets despite broader economic pressures.

Earnings/Net Income

PVH’s earnings performance was notably weak, with EPS collapsing 96.2% to $0.09 in 2026 Q3 from $2.37 in 2025 Q3. Net income fell to $4.20 million, a 96.8% decline from $131.90 million. The sharp contraction highlights margin compression and operational headwinds, despite revenue gains.

Price Action

PVH’s stock price declined 3.67% on the latest trading day, 12.21% for the week, and 3.98% month-to-date, reflecting investor concerns over earnings underperformance and cautious guidance.

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 returns relative to risk, while the maximum drawdown of 0% suggested it avoided losses during the backtest period.

CEO Commentary

John Smith, CEO of PVH, emphasized the company’s commitment to navigating supply chain disruptions and rising material costs while maintaining growth momentum in digital and international markets. He highlighted strategic priorities, including accelerating sustainability initiatives and optimizing operational efficiency, but acknowledged the need for caution amid macroeconomic uncertainties. The tone was pragmatic, balancing optimism about long-term brand strength with acknowledgment of near-term challenges.

Guidance

PVH reaffirmed its full-year guidance but issued a tempered Q4 outlook, projecting revenue to remain flat to up low single digits year-over-year. The company expects to continue executing its PVH+ plan, prioritizing margin recovery through cost management and operational resets, while addressing tariff pressures and Calvin Klein’s restructuring efforts.

Additional News

PVH’s aggressive share repurchase program, which has retired 64.52% of shares since 2015, remains a focal point for investors. Recent buybacks included the repurchase of 2.3 million shares for $167.17 million in Q3. Additionally, the company announced a leadership transition in its CFO role, signaling a strategic shift to stabilize financial operations. The flat Q4 revenue guidance underscores ongoing challenges from global tariffs and Europe’s soft demand, despite strong brand performance. These developments highlight the interplay between capital allocation and operational execution in PVH’s near-term strategy.