PVH Corp. Reports Quarterly Results for the Period Ended August 2, 2026
PVH Corp. reported its quarterly financial results for the period ended August 2, 2026. The company’s net sales increased by 4.5% to $2.3 billion, driven by strong performances from its Calvin Klein and Tommy Hilfiger brands. Gross margin expanded by 130 basis points to 54.1%, primarily due to improved product mix and pricing. Operating income rose by 10.5% to $243 million, while net income increased by 12.5% to $173 million. The company’s diluted earnings per share (EPS) grew by 14.3% to $1.43. PVH Corp. also reported a significant reduction in its debt, with net debt decreasing by $150 million to $1.4 billion. The company’s cash and cash equivalents increased by $100 million to $500 million. Overall, the company’s financial performance was strong, driven by its focus on product innovation, digital transformation, and operational efficiency.
Overview
PVH Corp. is one of the largest global apparel companies, with a history going back over 140 years and a listing on the New York Stock Exchange for over 100 years. The company’s revenue was $9.0 billion in 2025, with over 70% generated outside the United States. PVH’s global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over 95% of its revenue.
In addition to the owned TOMMY HILFIGER and Calvin Klein brands, PVH also licenses the Van Heusen, Nike and other brands for certain product categories. The company’s PVH+ Plan is a multiyear, strategic initiative to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands and make PVH the leading brand building group in its sector.
Macroeconomic Environment
PVH is facing a complex and challenging retail environment globally due to factors such as inflation, tariffs, the Middle East conflict, elevated interest rates and the risk of recession. These macroeconomic pressures are having a negative impact on consumer demand for apparel and related products.
The conflict in the Middle East has resulted in supply chain disruptions, increased fuel and oil costs, foreign currency volatility and broader macroeconomic implications that could significantly impact PVH’s business, including a decline in consumer spending and inventory availability. The company has experienced an impact to wholesale demand in the direct Middle East region and a broader impact on consumer purchasing behavior in Turkey and the greater European region.
The company has also been impacted by tariffs on goods imported into the United States, which have led to significant volatility and uncertainty in global markets. PVH is taking steps to mitigate its tariff exposure, including sourcing optimization, vendor negotiations, internal efficiencies and pricing actions.
There is significant uncertainty regarding the extent to which the Middle East conflict, global trade policies and other macroeconomic factors will impact PVH’s business, financial condition and results of operations going forward.
Results of Operations
PVH’s revenue in the second quarter of 2026 was $2.097 billion, a decrease of 3% compared to the prior year period. The decrease was driven by declines in the EMEA and Americas regions, partially offset by growth in the APAC region. Revenue from the Licensing segment also decreased.
Gross profit in the second quarter of 2026 was $1.322 billion, or 63.0% of revenue, compared to $1.251 billion, or 57.7% of revenue, in the prior year period. The increase in gross margin was primarily due to a $107 million benefit from tariff refunds, as well as lower product costs and a favorable mix shift towards the company’s direct-to-consumer channel.
SG&A expenses in the second quarter of 2026 were $1.112 billion, or 53.1% of revenue, compared to $1.129 billion, or 52.1% of revenue, in the prior year period. The increase in SG&A as a percentage of revenue was driven by higher marketing and strategic investments, partially offset by cost savings from the company’s Growth Driver 5 Actions initiative.
PVH recorded a $439 million pre-tax noncash goodwill impairment charge in the second quarter of 2026, primarily due to changes in valuation assumptions associated with geopolitical and macroeconomic factors. The company also recorded a $25 million gain on the sale of a warehouse and distribution center.
Interest expense, net decreased to $12 million in the second quarter of 2026 from $22 million in the prior year period, primarily due to higher interest income and lower short-term borrowings.
The effective income tax rate for the second quarter of 2026 was 49.2%, compared to (101.6)% in the prior year period. The higher rate was primarily due to the impact of the non-deductible goodwill impairment charge.
For the full year 2026, PVH expects revenue to be approximately flat compared to 2025, with a slight decrease excluding the impact of foreign currency translation. Gross margin is expected to increase by approximately 100 basis points, driven by tariff refunds, lower product costs and a favorable mix shift, partially offset by the impact of tariffs and the transition of previously licensed product categories. SG&A expenses as a percentage of revenue are expected to be relatively flat compared to 2025.
Liquidity and Capital Resources
PVH ended the second quarter of 2026 with $966 million in cash and cash equivalents and $1.7 billion of available borrowing capacity under its various debt facilities. Cash flow for the full year 2026 is expected to be impacted by factors such as:
- Expected common stock repurchases of at least $300 million
- Projected capital expenditures of approximately $250 million
- Net proceeds of $38 million from the sale of a warehouse and distribution center
- Net proceeds of $452 million from entering into new 2026 senior unsecured credit facilities
- Repayment of $461 million on the previous 2022 credit facilities
- Mandatory long-term debt repayments of approximately $9 million
- $107 million in tariff refunds received
- Potential reduction in cash due to the Middle East conflict
Cash provided by operating activities was $336 million in the first half of 2026, compared to $142 million in the prior year period, primarily due to changes in working capital.
PVH has a voluntary supply chain finance program that allows its suppliers to sell receivables due from the company to participating financial institutions. As of August 2, 2026, $407.6 million of the company’s payment obligations had been sold by suppliers under this program.
The company’s capital expenditures in the first half of 2026 were $76 million, and it expects full year 2026 capital expenditures of approximately $250 million for investments in new stores, renovations and information technology.
PVH’s Board of Directors has authorized an aggregate $5 billion stock repurchase program, and the company expects to repurchase at least $300 million of its common stock in 2026.
In June 2026, PVH entered into new $1.9 billion senior unsecured credit facilities, consisting of a €400 million euro-denominated term loan and a $1.5 billion multicurrency revolving credit facility. The proceeds were used to repay the previous 2022 credit facilities.
PVH also has outstanding senior notes, including €600 million of 3 1⁄8% notes due 2027, €525 million of 4 1⁄8% notes due 2029, and $500 million of 5 1⁄2% notes due 2030.
Analysis
PVH is facing significant macroeconomic headwinds that are negatively impacting consumer demand and creating a challenging retail environment globally. The conflict in the Middle East, tariffs, inflation and other factors have led to supply chain disruptions, increased costs and volatility that are expected to continue weighing on the company’s performance.
Despite these challenges, PVH was able to improve its gross margin in the second quarter through a combination of tariff refunds, lower product costs and a favorable mix shift towards its higher-margin direct-to-consumer channel. However, the company’s bottom line was significantly impacted by a $439 million goodwill impairment charge.
Looking ahead, PVH expects revenue to be relatively flat in 2026, with gross margin improving by around 100 basis points. The company is projecting SG&A expenses as a percentage of revenue to be relatively stable, as savings from its cost optimization initiatives offset increased marketing and strategic investments.
PVH’s liquidity position remains strong, with $966 million in cash and $1.7 billion in available borrowing capacity as of the end of the second quarter. The company has been actively managing its capital structure, entering into new credit facilities and repaying debt. It also plans to continue its sizable stock repurchase program, which should help support shareholder value.
Overall, PVH appears to be navigating the challenging macroeconomic environment reasonably well, leveraging its strong brands and financial flexibility. However, the persistent headwinds and uncertainty around the duration and impact of factors like the Middle East conflict pose ongoing risks that the company will need to carefully manage. Continued execution of its strategic initiatives and cost optimization efforts will be critical to driving profitability and shareholder returns in the current environment.
