After the close on September 2, US Eastern Daylight Time, American fashion retail group PVH Corp , parent company of the two major American fashion brands Calvin Klein and Tommy Hilfiger, released key financial data for the second quarter and first half of fiscal 2026 ended August 2, 2026: Q2 revenue fell 3% year on year to $2.097 billion, at the top end of its guidance range and above the guidance target on a constant currency basis.
Among the group's three major global regions, Asia Pacific was the only one to grow in the quarter, with revenue up 2.5% year on year to $344 million. Both Calvin Klein and Tommy Hilfiger recorded declines, but both brands' e-commerce businesses grew.
First-half group revenue was $4.122 billion, compared with $4.15 billion a year earlier.
As of the close on the day after the results were released, PVH shares edged up 0.24% from the previous day to $72.46 per share, down about 15% over the past year. Latest market capitalization was about $3.3 billion.
PVH Corp Chief Executive Officer Stefan Larsson said: "In the second quarter, our revenue was in line with guidance and earnings exceeded expectations, reflecting solid execution of our PVH+ Plan for our two iconic brands, Calvin Klein and TOMMY HILFIGER. DTC continued its positive momentum, with growth in the Americas and Asia Pacific, and performance in Europe, the Middle East and Africa improved versus the prior quarter. E-commerce grew at both brands, with online traffic up significantly. Early momentum is already visible in both product and marketing for the two brands' fall collections, and consumer response has been very positive following Calvin Klein's launch with Tate McRae and TOMMY HILFIGER's new campaign with Travis Kelce."
Interim Chief Financial Officer Melissa Stone said: "In the second quarter, we met or exceeded guidance on all of our key financial metrics. Revenue in all three regions and our licensing business was in line with expectations. Excluding the impact of tariff refunds, gross margin improved year on year. We are maintaining our full-year guidance on a non-GAAP basis."
In July, PVH Corp announced the appointment of Alexis Rollier as its new Chief Financial Officer, effective in early September. He will oversee PVH's global finance organization and hold full responsibility for the group's global financial controls.
Note: Unless otherwise stated, the following figures are calculated under GAAP
Key Q2 fiscal 2026 results are as follows:
- Revenue fell 3% year on year to $2.097 billion, at the top end of the guidance range and above the guidance target on a constant currency basis;
- Gross margin was 63%, compared with 57.7% a year earlier, up 530 basis points;
- Operating margin was -9.1%; on a non-GAAP basis it was 11.1%, above guidance of about 9.5%;
- Loss per share was $2.23; on a non-GAAP basis it was $3.7, above the guidance range of $3 to $3.1
- Loss before interest and taxes was $191 million, compared with a profit of $133 million a year earlier;
- Net loss was $103 million, compared with net income of $224 million a year earlier.
Key first-half fiscal 2026 results are as follows:
- Revenue was $4.122 billion, compared with $4.15 billion a year earlier;
- Loss per share was $0.32, compared with earnings per share of $3.59 a year earlier;
- Loss before interest and taxes was $66.6 million, compared with a loss of $199 million a year earlier.
- Net loss was $14.9 million, compared with net income of $179 million a year earlier.
By market:
- Europe, Middle East and Africa (EMEA): Q2 revenue was $986 million, down 5.9% year on year and down 5.8% on a constant currency basis.
The conflict in the Middle East and ongoing macroeconomic effects continued to weigh on local consumer demand. The revenue decline was mainly driven by the wholesale business. In the DTC (direct-to-consumer) channel, online revenue growth was fully offset by lower store revenue.
First-half revenue was $1.932 billion, compared with $1.976 billion a year earlier.
- Americas: Q2 revenue was $680 million, down 0.6% year on year on both a reported and constant currency basis.
DTC channel revenue rose slightly but was not enough to offset the decline in wholesale revenue. In the second quarter, the timing of wholesale order shipments shifted to the second half of the year, mainly in the Calvin Klein business, reducing revenue, partly offset by growth from bringing the previously licensed TOMMY HILFIGER womenswear category in-house.
First-half revenue was $1.283 billion, compared with $1.292 billion a year earlier.
- Asia Pacific: Q2 revenue rose 2.5% year on year to $344 million, up 1% on a constant currency basis.
On a constant currency basis, DTC growth drove revenue, partly offset by lower wholesale revenue.
First-half revenue was $730 million, compared with $687 million a year earlier.
- Licensing business: Q2 revenue fell 13% year on year to $86.9 million.
The decline was mainly due to the planned recapture of licensed businesses in North America (expected to be fully completed by the end of 2026), partly offset by growth in existing licensed businesses.
First-half revenue was $176 million, compared with $195 million a year earlier.
By brand:
- Tommy Hilfiger: Q2 revenue fell 0.4% year on year on both a reported and constant currency basis, to $1.132 billion. Excluding the recapture of the previously licensed womenswear category in the Americas, revenue was roughly flat year on year.
First-half revenue was $2.209 billion, compared with $2.184 billion a year earlier.
- Calvin Klein: Q2 revenue was $913 million, down 6.8% year on year and down 7.1% on a constant currency basis, including an approximately 4% revenue decline in the Americas from changes in the timing of wholesale order shipments.
First-half revenue was $1.808 billion, compared with $1.866 billion a year earlier.
By channel:
Direct-to-consumer (DTC) business Q2 revenue rose 0.1% year on year to $1.056 billion and was roughly flat on a constant currency basis.
- Owned and operated stores Q2 revenue fell 0.7% year on year to $862 million and was down 0.6% on a constant currency basis. Revenue growth in Asia Pacific was fully offset by declines in EMEA and the Americas;
- Owned e-commerce business Q2 revenue rose 4% year on year to $194 million and was up 3.2% on a constant currency basis. Growth in the Americas and EMEA was partly offset by a slight decline in Asia Pacific.
Wholesale business Q2 revenue fell 5.7% year on year to $954 million and was down 6% on a constant currency basis. All regions recorded revenue declines.
Full-year outlook maintained:
- Revenue: outlook maintained at roughly flat (a slight decline on a constant currency basis);
- Operating margin: maintained at about 8.8% on a non-GAAP basis;
- Earnings per share: maintained at $11.8 to $12.1 on a non-GAAP basis.
Q3 2026 outlook:
- Revenue: expected to decline by a low single digit percentage year on year (also a low single digit decline on a constant currency basis);
- Operating margin: about 7.5% on a non-GAAP basis;
- Earnings per share: $2.5-$2.65 on a non-GAAP basis.
| Source: Official financial report
| Image source: PVH Corp official website
| Editor: LuxeCO
