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PVH Cuts 2026 Revenue Outlook as Iran Conflict Weakens EMEA Demand

The company blamed prolonged Middle East hostilities for softer orders in Europe, the Middle East and Turkey and kept EPS guidance intact on expected tariff‑refund offsets.

Overview

  • PVH lowered its full‑year revenue outlook to roughly flat on a reported basis and slightly down in constant currency, and shares fell about 19–23% after the company delivered the update on Thursday.
  • The first quarter ended May 3 produced a beat on earnings with revenue of about $2.03 billion, net income of $88 million, and direct‑to‑consumer growth even as constant‑currency sales fell 2 percent.
  • CEO Stefan Larsson told investors the Iran conflict is hitting EMEA in three ways: sharply lower wholesale demand in the Middle East, knock‑on declines in Turkey from weaker tourism and macro conditions, and reduced European store traffic from higher fuel costs.
  • PVH reaffirmed adjusted EPS guidance of $11.80–$12.10, saying an estimated $100 million in tariff refunds and a roughly 15 percent assumed blended U.S. import tariff rate partly offset the EMEA weakness.
  • Management pointed to mitigants including DTC momentum, category strength in Calvin Klein underwear/denim and Tommy Hilfiger sweaters/outerwear, more in‑house women’s wholesale and marketing investments, and warned that continued conflict could further pressure EMEA and quarterly wholesale orders.