PVH (PVH) Q1 2027 earnings summary

Executive summary

• Q1 revenue reached $2.03 billion, up 2% year-over-year, exceeding guidance on a reported basis but down 2% in constant currency, with positive FX impact.

• Net income was $88 million, reversing a prior-year loss, and EPS on a non-GAAP basis was $2.01, above guidance.

• Direct-to-consumer revenue grew 6% reported (3% constant currency), driven by e-commerce and store gains for Calvin Klein and Tommy Hilfiger.

• Strategic marketing investments and enhanced consumer experience drove new customer acquisition and brand momentum.

• Inventory levels improved, down 5% year-over-year, with over 140 store refurbishments and new openings completed.

Financial highlights

• Gross margin held steady at 58.6% year-over-year; operating margin was 6.5% non-GAAP, at the high end of guidance.

• SG&A as a percent of revenue increased to 53.1%, mainly due to higher marketing and strategic investments.

• EBIT for Q1 was $131M non-GAAP; GAAP net income was $88M; diluted EPS was $1.90 GAAP and $2.01 non-GAAP.

• Cash and cash equivalents were $593 million as of quarter end; operating cash flow improved year-over-year.

• Inventory decreased 5% to $1.51 billion compared to the prior year.

Outlook and guidance

• Full-year 2026 revenue now expected to be flat reported and down slightly in constant currency, revised from previous slight increase guidance due to EMEA headwinds.

• Operating margin outlook reaffirmed at ~8.8% non-GAAP; gross margin expected up ~100 bps, including a 100 bps benefit from tariff refunds.

• EPS guidance reaffirmed at $11.80–$12.10 non-GAAP; capital spending projected at $250M; share repurchases of at least $300M planned.

• Q2 revenue projected down 3–4% reported, 4–5% constant currency; Q2 EPS expected at $3–$3.10; Q2 to benefit from $100M in tariff refunds.

• Effective tax rate for 2026 expected in the 19–23% range.