PVH Corp.

PVH reported first-quarter revenue of $2 billion, up 2% year over year on a reported basis and down 2% in constant currency. Gross margin was 58.6%, unchanged from last year, and operating margin was 6.5%; EBIT was $131 million and EPS was $2.01. On a channel basis, DTC revenue was up 6% reported and 3% in constant currency, while wholesale revenue was flat reported and down 6% in constant currency. Looking ahead, management now expects full-year reported revenue to be approximately flat and constant-currency revenue to be down slightly; operating margin remains guided to about 8.8%, EPS to $11.80 to $12.10, and Q2 revenue to be down 3% to 4% reported and 4% to 5% in constant currency.

Stefan Larsson said the quarter showed continued progress on the PVH+ Plan, with stronger brand momentum in Calvin Klein and Tommy Hilfiger, especially in DTC, e-commerce, and key hero categories like underwear, denim, sweaters, and outerwear. He emphasized that the company is leaning into power consumer segments, marketing, and store and digital upgrades, while scaling a more data- and demand-driven operating model. His tone was constructive but cautious, repeatedly pointing to the prolonged Middle East conflict as the main external headwind.

Melissa Stone said Q1 results were slightly ahead of guidance, with gross margin stable at 58.6%, SG&A at 52.1% of revenue, EBIT of $131 million, EPS of $2.01, interest expense of $16 million, and a tax rate of about 19%. She explained that the full-year outlook now includes a roughly $195 million gross tariff cost, about a $100 million benefit from tariff refunds, and a blended tariff rate assumption of about 15%; that keeps operating margin guidance at about 8.8% and EPS at $11.80 to $12.10. She also reiterated capital spending of about $250 million and at least $300 million of share repurchases.

Analysts focused on the PVH+ Plan, inventory, and how much markdown risk exists if Europe weakens further. Management said the plan is delivering proof points in traffic, DTC growth, and product-category expansion, while inventory was down 5% and the company feels good about its supply chain and inventory position, which they believe reduces markdown pressure. Questions on EMEA trends and the guidance cut were answered with a split attribution: about half of the pressure is direct Middle East/Turkey impact and about half is broader European consumer weakness, with management assuming those effects persist through the rest of Q2 and the year.