A global apparel company whose two biggest brands, TOMMY HILFIGER and Calvin Klein, dress people in sportswear, denim, underwear, accessories, and footwear sold through stores, online, and licensing deals. It began in 1881 when Moses Phillips sold shirts his wife and daughters hand-sewed from a pushcart to Pennsylvania coal miners, later merging with shirtmaker Van Heusen—famous for inventing the soft, no-starch collar that gave the company its Phillips-Van Heusen name before it rebranded as PVH and bought Calvin Klein and Tommy Hilfiger.
Q1 FY2026 net income rose to $88.0M as the prior year's $480M impairment did not repeat
The prior year's $480M did not repeat, swinging the quarter to profit. rose 2.1% to $2,025.1M and held at 58.6%, with the absence of the noncash charge driving to $88.0M from a $44.8M loss. The underlying business is flat, but China listing and tariff uncertainty remain open.
Key takeaways
was $88.0M versus a $44.8M loss a year earlier, as Q1 FY2025 carried $480M of noncash and intangible charges that did not recur, turning a $332.2M pre-tax loss into $124.3M .
What changed
The Unreliable Entities List proceeding carried over from the FY2025 10-K: PVH remains listed with no measures imposed, and the 10-Q states no material change to risk factors as of May 3, 2026.
Section summaries
Management's Discussion and Analysis
Q1 FY2026 revenue rose 2% to $2.025B with flat gross margin; prior-year $480M impairment absence drove net income to $88M.
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Total increased 2% to $2.025 billion, including a 4% favorable foreign currency translation impact; EMEA and APAC grew, while Americas and Licensing declined.
FY2026 guide of up ~100 against a ~215 bps tariff : Q1 gross margin was flat at 58.6%, with tariff mitigation and lower product costs offsetting higher tariffs and promotions.
rose 45.0% to $2,291.4M at FY2025 end and was $2,269.4M this quarter, down 1.0% QoQ; the 10-Q gives no new refinancing event beyond the prior note issuance.
APAC , which fell 13%, 1%, 1% across Q1-Q3 FY2025 and 4% for the year, grew in Q1 FY2026 after the prior annual decline.
used $46.5M versus $71.4M a year earlier, an improvement aided by changes.
What to watch
Full-year 2026 against the guide of up ~100 as tariff of ~215 bps flows through.
Any measures China's imposes under the Unreliable Entities List restricting import, export, or investment.
Calvin Klein and TOMMY HILFIGER licensed category in-housing through 2027 and its effect on North America and margin.
Pace of at least $300M share repurchases and $250M against $592.5M cash and $2,269.4M .
remained flat at 58.6% as tariff mitigation, lower product costs, and favorable channel mix offset higher tariffs, increased promotions, and license transition .
expenses rose 150 to 53.1% of , driven by higher marketing investments, direct-to-consumer mix shift, and expense deleveraging, partially offset by Growth Driver 5 savings.
Prior-year period included $480 million in noncash and intangible asset charges; their absence turned a $332M pre-tax loss into $124M pre-tax income.
Cash used by operations improved to $46 million from $71 million, aided by changes; full-year expected at $250 million and share repurchases of at least $300 million.
Full-year 2026 outlook assumes roughly flat , up ~100 , and an of 22–23%, with significant uncertainty from Middle East conflict and U.S. tariff policy.
Quantitative and Qualitative Disclosures About Market Risk
PVH faces foreign exchange risk from >70% non-U.S. revenue and interest rate risk on variable-rate euro debt, managed via fixed-rate debt, forwards, and net investment hedges.
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Over 70% of PVH’s $9.0 billion 2025 was generated outside the U.S., exposing results to translational and transactional foreign exchange impacts.
A 10% change in foreign exchange rates against the USD would shift the fair value of outstanding forward contracts by ~$110 million, substantially offset by the underlying hedged items.
PVH uses €1.125 billion of euro-denominated senior notes and cross-currency swaps as net investment hedges; a 10% euro move changes their fair value by ~$185 million.
Approximately 80% of is fixed-rate; a 10 change in one-month EURIBOR would alter variable by ~$0.5 million annually.
Foreign currency translation is expected to increase 2026 by ~$125 million and by ~$20 million versus 2025, while transactional FX is expected to benefit by ~50 .
Pension plan assumptions carry sensitivity: a 0.25% change in the discount rate would alter 2026 net benefit cost by ~$15 million, and a 1% change in by ~$4 million.
PVH Corp. was placed on China’s Unreliable Entity List in February 2025 after a MOFCOM investigation; no measures have been imposed yet.
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initiated an investigation in September 2024 under the , alleging PVH suspended normal transactions, adopted discriminatory measures related to Xinjiang, and violated market principles.
PVH submitted written responses in October and December 2024; in January 2025, preliminarily found a violation of normal market trading principles.
In February 2025, announced its determination and placed PVH Corp. on the .
Potential measures include fines, import/export restrictions, investment bans, and personnel entry denials, but none have been imposed to date.
The company warns that restrictions could materially harm its ability to produce, sell, or invest in China, adversely affecting and operations.
Management believes other pending litigations will not have a material adverse effect on the company's financial position.
Please refer to Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for a description of certain significant risks and uncertainties to which our business, financial condition and results of operations are subject. There have been n…
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Please refer to Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for a description of certain significant risks and uncertainties to which our business, financial condition and results of operations are subject. There have been no material changes to these risk factors as of May 3, 2026.
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