PVH swung to a loss and had lower revenue in the latest quarter, pointing to softer demand in Europe, the Middle East, and Africa due to the conflict in Iran.

The owner of Tommy Hilfiger and Calvin Klein on Wednesday reported a second-quarter loss of $102.9 million, or $2.23 a share, compared with a profit of $224.2 million, or $4.63 a share, a year earlier.

Adjusted earnings per share were $3.70, compared with analyst estimates for $3.08, according to FactSet.

Revenue fell 3% to $2.1 billion, compared with analyst estimates of $2.09 billion.

The sales decline was led by a 6% decrease in Europe, the Middle East, and Africa, which the company attributed to pressure on consumers from the war in Iran and its broader economic effects. Sales ticked down 1% in the Americas, and rose 3% in the Asia-Pacific region.

Chief Executive Stefan Larsson said the company continues to build momentum in its direct-to-consumer business, with growth in e-commerce sales.

Both brands are also seeing early momentum with product and marketing for the fall, Larsson said, pointing to recent campaigns with Tate McRae for Calvin Klein and Travis Kelce for Tommy Hilfiger. The company said it plans to step up its marketing in the third quarter.

For the full year, PVH continues to expect full-year revenue to stay approximately flat. The company had cut its revenue guidance back in June, citing softer demand due to the war in Iran. The company also backed its profit guidance for the year, continuing to forecast adjusted earnings between $11.80 and $12.10 a share.

For the current third quarter, PVH expects a low single-digit revenue decline and adjusted earnings per share of $2.50 to $2.65. Analysts project revenue of $2.28 billion, or down about 0.7%, on adjusted earnings of $2.99 a share.