PVH Corp., the company behind Calvin Klein and Tommy Hilfiger, reported that its first-quarter fiscal 2026 revenue dropped 2% year-over-year to $2 billion, based on constant currency. The results matched what the company expected, but its shares fell 23% in after-hours trading following the announcement on Wednesday evening. PVH is also lowering its full-year outlook from a slight increase to a slight decrease.

CEO Stefan Larsson told investors during Thursday’s earnings call, “At the highest level for the quarter, we delivered on all our commitments, despite the increasingly challenging consumer and macroeconomic environment in EMEA [Europe, the Middle East, and Africa], driven by the prolonged Middle East conflict.”

Looking at brands, Tommy Hilfiger’s revenue fell 2% year-over-year to $1.07 billion, while Calvin Klein’s revenue dropped 3% to $895.2 million. Company-wide, direct-to-consumer (DTC) revenue rose 3% year-over-year. DTC growth in the Americas and Asia-Pacific was partly offset by a decline in EMEA, and wholesale revenue fell across all regions. Larsson highlighted the company’s partnership with OpenAI and Salesforce for improving its ability to understand data and demand, which supports its DTC business. “Together, these capabilities are helping us connect consumer product and operational insights across the value chain, so we can move faster, get closer to demand, and make more data-driven decisions,” Larsson said.

By region, EMEA revenue fell 5% year-over-year to $946.1 million. The company attributed this decline partly to weaker consumer demand due to the ongoing effects of the Middle East conflict and its macroeconomic impact. Americas revenue decreased 2% to $602.9 million, while Asia-Pacific revenue increased 6% to $387 million.

Looking ahead, the company expects full-year revenue to decrease slightly year-over-year. This is a small change from PVH’s original full-year 2026 guidance, which predicted revenue would stay flat or increase slightly compared to 2025. The revision is due to the ongoing impact of the Middle East crisis and continued pressure on the company’s EMEA market.

“As we shared last quarter, we did not include the prolonged effects of the Middle East conflict in our original guidance, which we now expect to feel the impact of for the full three months in the second quarter, as well as through the back half of this year,” Larsson said. “As a result, we have to reduce our EMEA outlook and we are updating our overall full year.”

Frequently Asked Questions
Here is a list of FAQs regarding PVHs updated 2026 outlook following a drop in firstquarter sales due to the Middle East conflict

FAQs on PVHs Updated 2026 Outlook

BeginnerLevel Questions

1 What happened to PVHs sales recently
PVH reported a drop in sales for the first quarter of the year The company earned less money than expected during this period

2 Why did PVHs sales drop
The company says the ongoing conflict in the Middle East is a major reason This conflict is hurting consumer confidence and disrupting business in that region

3 What is the 2026 outlook that PVH updated
The 2026 outlook is PVHs longterm financial plan and goals for the year 2026 They have now changed these goals to be more cautious because of the current sales drop

4 Does this mean PVH is in big trouble
Not necessarily It means the company is being realistic about current challenges They are adjusting their future expectations to match a slower business environment which is a common business practice

5 Which brands does PVH own
PVH owns popular clothing brands like Calvin Klein and Tommy Hilfiger

Intermediate Advanced Questions

6 How exactly is the Middle East conflict affecting PVH
The conflict creates uncertainty which leads to lower consumer spending in the region It also disrupts supply chains increases operating costs and can hurt tourism which is a key sales driver for PVHs retail stores in affected areas

7 What specific changes did PVH make to its 2026 outlook
While the exact numbers are detailed in their investor reports the key change is a lowered expectation for revenue growth and profit margins They now anticipate a slower recovery and have likely reduced their longterm sales targets for 2026

8 Is this only a problem for PVH or are other fashion companies affected
Its an industrywide issue Many global apparel companies with exposure to the Middle East and broader geopolitical risks are facing similar headwinds However PVHs specific exposure to the region and its reliance on wholesale partners there makes it more vulnerable than some

9 How should an investor interpret this news
Investors should see this as a sign