PVH Corp., owner of Calvin Klein and Tommy Hilfiger, said first-quarter fiscal 2026 revenues fell 2% year-on-year, on a constant currency basis, to $2 billion. The results were in line with company expectations, but shares fell 23% in after-hours trading following the announcement on Wednesday evening, and the company is lowering its full-year outlook from a slight increase to a slight decrease.
“At the highest level for the quarter, we delivered on all our commitments, despite the increasingly challenging consumer and macroeconomic environment in EMEA [Europe, the Middle East, and Africa], driven by the prolonged Middle East conflict,” CEO Stefan Larsson told investors on Thursday’s earnings call.
By brand, Tommy Hilfiger revenues decreased 2% year-on-year to $1.07 billion, while Calvin Klein revenues decreased 3% to $895.2 million. Company-wide, direct-to-consumer (DTC) revenues rose 3% year-on-year. DTC growth in the Americas and Asia-Pacific was partially offset by a decline in EMEA, while wholesale revenues declined across all regions. Larsson pointed to the company’s partnership with OpenAI and Salesforce in its ability to understand data and demand, fueling its DTC business. “Together, these capabilities are helping us connect consumer product and operational insights across the value chain, so we can move faster, get closer to demand, and make more data driven decisions,” Larsson said.
Photo: Courtesy of Tommy Hilfiger
By region, EMEA revenues fell 5% year-on-year to $946.1 million. The decline was, in part, due to softer consumer demand stemming from the prolonged effects from the Middle East conflict and its macroeconomic implications, according to the company. Americas revenues decreased 2% to $602.9 million, while Asia-Pacific revenues increased 6% to $387 million.
Looking ahead, the company projects full-year revenues to decrease slightly year-on-year. This is a slight amendment from PVH’s original full-year 2026 guidance, which anticipated that revenues would remain flat or increase slightly compared to 2025. The change is due to the ongoing impact of the Middle East crisis, as well as continued pressures on the company’s EMEA market.
“As we shared last quarter, we did not include the prolonged effects of the Middle East conflict in our original guidance, which we now expect to feel the impact of for the full three months in the second quarter, as well as through the back half of this year,” Larsson said. “As a result, we have to reduce our EMEA outlook and we are updating our overall full year.”
