PVH (PVH) Q2 2027 earnings summary

Executive summary

• Second quarter revenue was $2.1 billion, down 3% year-over-year but at the high end of guidance, with strong D2C and e-commerce growth in Americas and APAC, and improved sequential performance in EMEA.

• Gross margin rose 530 basis points to 63.0%, mainly due to a $107 million tariff refund and disciplined cost management.

• Net loss for the quarter was $102.9 million, driven by a $439 million noncash goodwill impairment charge related to EMEA.

• Operating cash flow for the first half of 2026 was $336 million, with cash and cash equivalents at $966 million at quarter end.

• Major global marketing campaigns and new leadership appointments supported brand momentum.

Financial highlights

• Q2 revenue decreased 3% year-over-year to $2.097 billion, at the high end of guidance.

• Non-GAAP operating margin was 11.1%, above guidance, with a 510 basis point benefit from $107 million in tariff refunds; GAAP operating margin was (9.1)% due to impairment charges.

• Non-GAAP EPS was $3.70, exceeding guidance; GAAP EPS was $(2.23) due to the goodwill impairment.

• Inventory decreased 3% year-over-year to $1.738 billion, with healthy levels across all regions.

• SG&A as a percentage of revenue was 53.1% for the quarter, up from 52.1% year-over-year, reflecting higher marketing and channel mix.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: revenue approximately flat, non-GAAP operating margin at 8.8%, and non-GAAP EPS in the range of $11.80 to $12.10, including tariff refunds.

• Q3 revenue expected to decrease low single digits; Americas up mid-single digits, APAC flat, EMEA down mid-single digits.

• Q3 non-GAAP operating margin expected around 7.5%; EPS $2.50–$2.65.

• Full-year marketing spend to increase at least 50 basis points to ~6% of sales.

• Net interest expense for full year projected at $70 million, with effective tax rate between 22% and 23% on a non-GAAP basis.