Apparel giant PVH Corp (NYSE: PVH), the parent company of Calvin Klein and Tommy Hilfiger, has released its first-quarter results for fiscal 2026 and updated its full-year outlook. The company expects annual revenue to be essentially flat year-over-year, with non-GAAP earnings per share projected to be in the range of $11.80 to $12.10. This guidance incorporates both the negative impact of the ongoing Middle East conflict and an anticipated benefit of approximately $100 million from tariff refunds.

The financial report shows that PVH Corp achieved first-quarter revenue of $2.025 billion, marking a 2% increase and surpassing market expectations of $2.0 billion. Non-GAAP earnings per share were $2.01, exceeding the company's prior forecast range of $1.65 to $1.80. Its direct-to-consumer business performed strongly, growing by 6%, while e-commerce sales increased by 11%. The gross margin remained stable at 58.6%, as benefits from tariff mitigation efforts and a favorable product mix offset the headwinds from increased U.S. tariffs and a more promotional environment.

Performance Diverges Across Regions

However, performance varied significantly by region. Revenue in the Asia-Pacific region grew by 6% on a constant-currency basis, serving as the primary growth driver. In contrast, the Americas region saw a 2% decline. The Europe, Middle East, and Africa region experienced a 5% decrease, primarily due to continued soft consumer demand stemming from the ongoing conflict in the Middle East. CEO Stefan Larsson stated that the company is balancing two opposing forces: the strengthening business momentum of its Calvin Klein and Tommy Hilfiger brands against the persistent pressure on consumers in the EMEA region from the Middle East conflict.

Incorporated Benefits and Outlook

The company's full-year guidance includes the expected benefit of about $100 million in tariff refunds, which is anticipated to be recognized in the second quarter. This tariff refund is projected to have a positive impact of approximately 100 basis points on the operating margin, essentially offsetting the negative impact from the Middle East conflict. This allows the company to maintain its expectation for a full-year operating margin of around 8.8%.

For the second quarter, PVH Corp forecasts revenue to decline by 3% to 4% year-over-year, with non-GAAP earnings per share expected to be between $3.00 and $3.10. The company still plans to repurchase at least $300 million of its common stock during 2026. Following the earnings release, PVH Corp's stock price declined, reflecting investor concerns over the continued impact of the Middle East situation on European operations and ongoing uncertainty in the tariff environment.