PVH cuts outlook amid Iran crisis and weak EMEA demand

PVH, the parent company of both Tommy Hilfiger and Calvin Klein, cut its full-year 2026 revenue outlook, citing the impact of the Iran crisis.

In its latest earnings report, the company said that it was expecting sales to be “slightly down” on a constant-currency basis, reversing earlier guidance published on 31 March that sales would be “flat to slightly up”.

CEO Stefan Larsson had commented in March that PVH was entering 2026 with “positive momentum”, expecting direct-to-consumer growth for both brands across all regions. He pointed to “positive” autumn wholesale orders in Europe as a signal of underlying strength.

In March, PVH had already flagged the impact of US tariffs and an increased promotional environment on its operating margins.

Just over two months later, the impact of the conflict in Iran had increased, with PVH saying that the war was weighing on consumer demand across its EMEA segment while also inflating logistics and fuel costs across its supply chain.

Across the EMEA region, revenues decreased by 5% on a constant-currency basis in the first quarter, driven by declines in both the direct-to-consumer and wholesale businesses due to softer consumer demand.

The guidance cut means PVH now expects 2026 constant-currency revenue to fall below even the modest growth achieved in 2025.

For the first quarter, PVH reported revenues of $2.025 billion, a 2% decrease on a constant-currency basis compared to the prior-year period.

Tommy Hilfiger’s global revenue decreased by 2% on a constant-currency basis, while Calvin Klein declined by 3% over the first quarter.

Stefan Larsson, Chief Executive Officer, commented: “As we look forward, we are balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and Tommy, and on the other, the prolonged effects of the Middle East conflict, which is putting pressure on the consumer in EMEA.

"We are adjusting to the moment, while keeping our long-term approach to fueling our brand and business momentum.”

In its full-year 2025 financial results, PVH reported that it had returned to “modest revenue growth,” with revenues up by 3%, but a 70% drop in non-adjusted EBIT.

PVH noted that the large drop in EBIT was due to net costs of $560 million in 2025. These included $480 million recorded as non-cash goodwill and other intangible asset impairment charges, primarily due to a significant increase in discount rates. Additional costs were related to restructuring associated with the company’s strategic initiatives.

Even when stripping out these unusual costs, the adjusted EBIT figure (reported as non-GAAP EBIT) still recorded a slight fall, from $865 million in 2025 to $791 million in 2026 (inclusive of the $32 million positive impact from foreign currency translation) - a decrease of 8.6%.