PVH shares plunge 16% as outlook update overshadows solid first quarter

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"As we look forward, we are balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and TOMMY, and on the other, the prolonged effects of the Middle East conflict, which is putting pressure on the consumer in EMEA,” said Stefan Larsson, Chief Executive Officer at PVH.

The company also highlighted gains from enhanced spring marketing campaigns aimed at core consumer segments, which helped attract new customers across brands and regions. Investments in e-commerce capabilities, store upgrades and shop-in-shop renovations further supported customer engagement.

Despite the solid start to the year, PVH revised its full-year outlook to incorporate the estimated negative effects of ongoing conflict in the Middle East. The company said those pressures are expected to be partially offset by tariff refunds.

PVH now expects fiscal 2026 revenue to be approximately flat compared with the prior year, while maintaining its non-GAAP operating margin forecast of about 8.8%.

Operating margin for the quarter came in at the high end of management’s guidance, aided by continued product innovation and disciplined execution. PVH said key product categories including Calvin Klein denim and underwear, and Tommy Hilfiger sweaters and outerwear, delivered growth across stores and digital platforms.