For 2026, PVH projects revenue will increase slightly, and non-GAAP operating margins are expected to remain stable at around 8.8 percent. However, the outlook incorporates a significant tariff burden, which is estimated to reduce EBIT by approximately $195 million, along with continued mitigation efforts. Non-GAAP EPS is projected in the range of $11.8 to $12.1, supported in part by favorable currency movements.
PVH expects tariff hurdles to put pressure on core profitability, despite modest growth in 2025. For 2026, it expects slight revenue growth and stable margins, although tariffs may reduce EBIT by $195 million. The fourth quarter was strong, with revenue up 6 percent and margins improving. 2025 revenue rose 3 percent, while non-GAAP EPS beat estimates but fell behind previous projections.
Melissa Stone, interim CFO of PVH Corp, said: “Looking ahead to 2026, we expect to deliver operating margins consistent with 2025, including modest gross margin expansion, despite the inclusion of a full year of fees, and strong expansion on an underlying basis.”
Strong Q4 performance lifts margins despite tariff impact
Meanwhile, in the fourth quarter of 2025, ended February 1, 2026, revenue rose 6 percent to $2.5 billion, beating expectations, while non-GAAP earnings per share hit $3.82, well above guidance. Operating margin for the quarter improved to 10 percent on a non-GAAP basis, despite a 170 basis point tariff impact, reflecting improved cost discipline and operational execution.
Stefan Larsson, CEO of PVH Corp, commented: “We had a strong fourth quarter and year-end, driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and the continued disciplined execution of our PVH+ Plan. In the fourth quarter, we exceeded our guidance on revenue, operating margin and EPS on a non-GAAP basis.”
Regionally, the Americas and Europe, Middle East and Africa (EMEA) posted growth in the fourth quarter, supported by wholesale strength and brand initiatives, while Asia-Pacific (APAC) declined due to weaker demand and calendar impacts related to the Lunar New Year. Direct-to-consumer (DTC) performance remained mixed, with modest gains offset by weakness in physical retail, while digital commerce continued to show gradual improvement.
The company reported full-year 2025 revenue of $8.95 billion, up 3 percent year over year. However, at constant currency, revenue rose less than 1 percent, reflecting muted underlying demand in key markets, PVH said in a news release.
On the earnings front, PVH posted GAAP earnings per share (EPS) of $0.52, well below the prior year due to one-time items including impairment charges. On a non-GAAP basis, EPS came in at $11.4, beating revised guidance of $10.85 to $11, although falling short of previous projections issued in 2024.
Fiber2Fashion News Desk (SG)
