PVH maintains full-year forecast despite second-quarter loss

US apparel group PVH Corporation reported an expected decline in revenue in the second quarter of the 2026/27 financial year. The company also slipped into the red due to high one-off charges. The results, published on Wednesday evening, gave management no reason to change its full-year forecast.

In the most recent quarter, which ended on August 2, group revenue amounted to almost 2.10 billion dollars. This represented a decrease of 3.2 percent compared to the same period last year. Adjusted for currency fluctuations, revenue fell by 3.4 percent. The company had previously anticipated a currency-adjusted decline of four to five percent.

Revenue for the Tommy Hilfiger brand was 1.13 billion dollars, slightly below the previous year's level (a decrease of 0.4 percent). Calvin Klein's revenue decreased by 6.8 percent (a 7.1 percent decrease on a currency-neutral basis) to 913.3 million dollars. The company attributed the significant decline to factors including changes in delivery dates in its North American wholesale business.

Ongoing Middle East conflict dampens demand

Revenue developed positively in the Asia-Pacific region. It increased by 2.5 percent (a 1.0 percent increase on a currency-neutral basis) to 343.7 million dollars. In the Americas, it fell by 0.6 percent to 680.1 million dollars.

In the EMEA region, which includes Europe, the Middle East and Africa, revenue decreased by 5.9 percent (a 5.8 percent decrease on a currency-neutral basis) to 986.3 million dollars. Management attributed the decline to the ongoing impact of the Middle East conflict on demand in the region.

Impairment charges weigh on earnings

The group was able to increase its adjusted operating margin, yet it had to recognise impairment charges of 439 million dollars in the second quarter. According to the company, these resulted primarily from revaluations “in connection with geopolitical and macroeconomic factors”.

Therefore, the apparel provider had to accept a loss before interest and taxes (EBIT) of 190.9 million dollars, after posting a positive EBIT of 133.2 million dollars in the same period last year. Adjusted for special items, EBIT increased from 178 million to 233 million dollars.

The reported net loss was 102.9 million dollars. In the same quarter of the previous year, the group had achieved a net profit of 224.2 million dollars.

Full-year forecasts remain unchanged

CEO Stefan Larsson was generally satisfied with the latest figures. “In the second quarter, we delivered revenue in line with our guidance. Profitability exceeded our expectations,” he explained in a statement, referring to the “disciplined execution” of the ongoing “PVH+” reform strategy.

Management left its full-year forecasts unchanged. It therefore continues to expect revenue to be roughly at the previous year's level. A slight decline is expected on a currency-neutral basis. The target for the adjusted operating margin remains at around 8.8 percent, and adjusted earnings per share are expected to reach 11.80 to 12.10 dollars.