PVH CORP. /DE/

Previous wording

Inflation and other macroeconomic pressures, such as tariffs and the Middle East conflict (discussed further below), elevated interest rates and the risk of recession, continue to create a complex and challenging retail environment globally. Macroeconomic factors are having, and may continue to have, a negative impact on consumer demand for apparel and related products globally.

Current wording

Inflation and other macroeconomic pressures, such as tariffs and the Middle East conflict (both discussed further below), elevated interest rates and the risk of recession, continue to create a complex and challenging retail environment globally. Macroeconomic factors are having, and are expected to continue to have, a negative impact on consumer demand for apparel and related products globally.

Previous wording

The conflict in the Middle East, which began in March 2026, has resulted in disruption and instability in global supply chains, increased fuel and oil costs, foreign currency volatility, particularly in the euro, and continued volatility and uncertainty in global markets. These and other factors have had, and may continue to have, broader macroeconomic implications that could have a significant impact on our business, including a decline in consumer spending and inventory availability. We are already seeing a broader impact from the conflict on consumer purchasing behavior in Turkey and the greater European region, including the effect of increased fuel prices, which is causing a decline in consumer traffic to stores and a more promotional environment. We have also started to experience an impact to wholesale demand in the direct Middle East region (excluding Turkey). Approximately 1% and 7% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in the direct Middle East region (excluding Turkey) in 2025. The length, scope and intensity of the conflict remain uncertain. As a result, there continues to be significant uncertainty regarding the extent to which the conflict and its broader macroeconomic implications will impact our business, financial condition and results of operations for the remainder of 2026. Our 2026 outlook currently assumes estimated negative prolonged effects from the conflict in the Middle East and its broader macroeconomic pressures.

Current wording

The conflict in the Middle East, which began in March 2026, has resulted in disruption and instability in global supply chains, increased fuel and oil costs, foreign currency volatility (particularly in the euro), and continued volatility and uncertainty in global markets. These and other factors have had, and are expected to continue to have, broader macroeconomic implications that could have a significant impact on our business, including a decline in consumer spending and inventory availability. We have been experiencing an impact to wholesale demand in the direct Middle East region (which excludes Turkey). Approximately 1% and 7% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in the direct Middle East region (which excludes Turkey) in 2025. We have also been seeing a broader impact from the conflict on consumer purchasing behavior in Turkey and the greater European region, which are significant markets for us, including the effect of increased fuel prices, which has been causing, and may continue to cause, a decline in consumer traffic to stores and a more promotional environment. The length, scope and intensity of the conflict remain uncertain. As a result, there continues to be significant uncertainty regarding the extent to which the conflict and its broader macroeconomic implications will impact our business, financial condition and results of operations for the remainder of 2026. Our 2026 outlook currently assumes estimated negative prolonged effects from the conflict in the Middle East and its broader macroeconomic pressures.

Previous wording

Beginning in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the United States primarily under the International Emergency Economic Powers Act (“IEEPA”), with incremental tariffs on products imported from most countries and economic unions, and the potential for further increases and revisions or terminations to existing trade agreements. In response, some countries and economic unions announced retaliatory tariffs on United States exports and other trade restrictions. In February 2026, the U.S. Supreme Court ruled that the IEEPA tariffs imposed were unconstitutional. In response to that decision, an executive order was issued imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026.

Current wording

Beginning in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the United States primarily under the International Emergency Economic Powers Act (“IEEPA”), with incremental tariffs on products imported from most countries and economic unions. In February 2026, the U.S. Supreme Court ruled that the IEEPA tariffs imposed were unconstitutional. In response to that decision, an executive order was issued imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days effective on February 24, 2026, which subsequently expired on July 24, 2026. These tariffs are being challenged in court. On July 23, 2026, the Office of the U.S. Trade Representative took action under Section 301 of the Trade Act of 1974 and imposed new tariff rates ranging from 10% to 12.5% on most imports from certain countries. Additional investigations are being conducted under Section 301 and are expected to result in additional tariffs on goods we import into the United States.

Previous wording

In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection (“CBP”) to refund IEEPA tariffs that were previously collected, including applicable interest. CBP launched a tariff refund program in April 2026 to facilitate the refunds, and we submitted claims for IEEPA tariffs that have been previously paid. We elected to apply a gain contingency model in accordance with ASC 450-30,“Gain Contingencies” to account for potential recoveries of previously paid tariffs under which a gain will not be recognized until realized or realizable. As of May 3, 2026, we did not record a receivable related to potential tariff refunds as the amount and timing of any recoveries was uncertain. As of the date of this report, we have received $27 million in cash payments, plus interest, subsequent to the end of the quarter.

Current wording

In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection (“CBP”) to refund IEEPA tariffs that were previously collected, including applicable interest. CBP launched a tariff refund program in April 2026 to facilitate the refunds, and we submitted claims for IEEPA tariffs that we had previously paid. We elected to apply a gain contingency model in accordance with ASC 450-30, “Gain Contingencies” to account for potential recoveries of previously paid tariffs under which a gain would not be recognized until realized or realizable. During the second quarter of 2026, we received the cash refunds related to previously paid tariffs for all claims that we had submitted under the tariff refund program and we recognized a benefit of $107 million in cost of goods sold.

Previous wording

Further trade policy actions are unclear, including whether additional tariffs or other actions may be imposed, modified, or suspended. The Office of the U.S. Trade Representative has conducted and is conducting investigations under Section 301 of the Trade Act of 1974 that are expected to result in new tariffs being implemented in the second or third quarter of 2026. These factors have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies have included, and may continue to more significantly include, further sourcing optimization, negotiations with our vendors, internal efficiencies to drive cost savings, optimizing our discount strategies and pricing actions.

Current wording

Further trade policy actions are unclear, including whether additional tariffs or other actions may be imposed, modified, or suspended. These factors have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies have included, and may continue to more significantly include, further sourcing optimization, negotiations with our vendors, internal efficiencies to drive cost savings, optimizing our discount strategies and pricing actions.

Previous wording

Our outlook assumes that the current U.S. tariff rates on goods coming into the U.S. will continue through July 2026 and then rates will increase to an average that approximates the levels that were in place prior to the U.S. Supreme Court ruling. We currently expect an estimated net negative impact on our full year 2026 gross profit related to the negative impact of tariffs on goods coming into the United States including a gross impact of approximately $195 million and a partially offsetting impact from planned mitigation actions. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts. Our full year outlook also reflects an expected benefit to cost of goods sold of approximately $100 million related to tariff refunds, which are currently expected to be recorded in the second quarter of 2026. The amount and timing of recovery remains uncertain and dependent on regulatory and administrative processes outside of our control.

Current wording

Our outlook continues to assume that the tariffs currently in place for goods imported into the United States will have a negative impact on our full year 2026 gross profit resulting from a full year blended tariff rate of approximately 15%, partially offset by the impact from planned mitigation actions. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts. Our full year outlook also includes the benefit to cost of goods sold of $107 million related to the tariff refunds recorded in the second quarter of 2026 discussed above.

Previous wording

•We embarked on a multi-year initiative beginning in 2024 to simplify our operating model by centralizing certain processes and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative has resulted in annualized cost savings of over $200 million, while continuing to make targeted investments to drive our strategic initiatives. While the actions to support this initiative were largely completed by the end of 2025, there have been certain actions taken and additional actions that we plan to take under this initiative, on a limited basis, during 2026. Such actions include the sale of our owned warehouse and distribution center located in Jonesville, NC, as discussed above. We recorded pre-tax costs of $7 million during the first quarter of 2026 in connection with this initiative consisting principally of severance. We recorded pre-tax costs of $93 million during 2025 in connection with this initiative consisting principally of severance. We expect additional actions in 2026, however the net impact of these remaining actions cannot be quantified at this time. Please see Note 14, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Current wording

•We embarked on a multi-year initiative beginning in 2024 to simplify our operating model by centralizing certain processes and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative has resulted in annualized cost savings of over $250 million, while continuing to make targeted investments to drive our strategic initiatives. There have been certain actions taken and additional actions that we plan to take under this initiative, on a limited basis, in 2026, including the sale completed in the second quarter of 2026 of our owned warehouse and distribution center located in Jonesville, NC. We recorded a pre-tax net gain of $9 million during the twenty-six weeks ended August 2, 2026 in connection with this initiative, including (i) a gain of $25 million on the sale of a warehouse and distribution center (recorded in other gain) and (ii) $17 million of restructuring costs consisting principally of severance (recorded in selling, general and administrative expenses). We recorded pre-tax costs of $93 million during 2025 in connection with this initiative consisting principally of severance. The impact of the remaining actions we plan to take cannot be quantified at this time. Please see Note 14, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Previous wording

We extended in 2022 most of our licensing agreements with G-III Apparel Group, Ltd. for Calvin Klein and TOMMY HILFIGER in the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements now have staggered expirations through 2026, the first of which occurred at the end of calendar 2023. We have been directly operating a significant portion of the businesses for the previously licensed product categories, and we intend to continue to directly operate a significant portion of these businesses as the license agreements expire, with the remainder re-licensed to other third parties. The expiration of these licenses and the transition of previously licensed women’s product categories in house resulted in a 1% net increase to our revenue and an approximately 50 basis point decline in our gross margin in 2025. In 2026, the transition of previously licensed product categories is expected to result in a less than 1% net increase to our revenue and an approximately 50 basis point decline in our gross margin.

Current wording

We extended in 2022 most of our licensing agreements with G-III Apparel Group, Ltd. for Calvin Klein and TOMMY HILFIGER in the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements were given staggered expirations, with the first occurring at the end of calendar 2023, the last occurring at the end of calendar 2026 and most being expired by the end of calendar 2025. We have been directly operating and managing a significant portion of the businesses for the previously licensed product categories, and we intend to continue to directly operate or manage a significant portion of these businesses, with the remainder re-licensed to other third parties. The expiration of these licenses and the transition of previously licensed women’s product categories in house resulted in a 1% net increase to our revenue and an approximately 50 basis point decline in our gross margin in 2025. In 2026, the transition of previously licensed product categories is expected to result in a less than an additional 1% net increase to our revenue and an additional approximately 50 basis point decline in our gross margin.

Previous wording

In September 2024, China’s Ministry of Commerce (“MOFCOM”) announced that it had initiated an investigation into our business under the Provisions of the List of Unreliable Entities (“UEL Provisions”). In October 2024, we submitted a written response to MOFCOM and, in December 2024, we submitted a supplemental response. In January 2025, MOFCOM issued a preliminary finding that PVH Corp. had violated normal market trading principles and in February 2025, it announced its determination and placed PVH Corp. on the List of Unreliable Entities (“UEL”). We do not know if or when MOFCOM will implement any measures as a result of the listing or what they will be if any are imposed. Approximately 6% and 20% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in China in 2025. Furthermore, if, as a result of any such measures, it is necessary for us to cease certain or all operations in China, it may result in charges related to excess inventory and difficulty collecting trade receivables, among other things. We may also incur material non-cash impairment charges if we are unable to recover the carrying value of our indefinite-lived intangible assets and long-lived assets. Please see our risk factor “China’s Ministry of Commerce (“MOFCOM”) conducted an investigation into our business which resulted in PVH Corp. being placed on the List of Unreliable Entities (“UEL”) and could result in fines or restrictions on our ability to do business in China, which could have a material adverse effect on our revenue and results of operations”in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for additional information.

Current wording

In September 2024, China’s Ministry of Commerce (“MOFCOM”) announced that it had initiated an investigation into our business under the Provisions of the List of Unreliable Entities (“UEL Provisions”). In October 2024, we submitted a written response to MOFCOM and, in December 2024, we submitted a supplemental response. In January 2025, MOFCOM issued a preliminary finding that PVH Corp. had violated normal market trading principles and in February 2025, it announced its determination and placed PVH Corp. on the List of Unreliable Entities (“UEL”). We do not know if or when MOFCOM will implement any measures as a result of the listing or what they will be if any are imposed. Approximately 6% and 20% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in China in 2025. Furthermore, if, as a result of any such measures, it is necessary for us to cease certain or all operations in China, it may result in charges related to excess inventory and difficulty collecting trade receivables, among other things. We may also incur material noncash impairment charges if we are unable to recover the carrying value of our indefinite-lived intangible assets and long-lived assets. Please see our risk factor “China’s Ministry of Commerce (“MOFCOM”) conducted an investigation into our business which resulted in PVH Corp. being placed on the List of Unreliable Entities (“UEL”) and could result in fines or restrictions on our ability to do business in China, which could have a material adverse effect on our revenue and results of operations”in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for additional information.

Previous wording

Due to the above seasonal factors, our results of operations for the thirteen weeks ended May 3, 2026 are not necessarily indicative of those for a full fiscal year.

Current wording

Due to the above seasonal factors, our results of operations for the thirteen and twenty-six weeks ended August 2, 2026 are not necessarily indicative of those for a full fiscal year.

Previous wording

The following table summarizes our consolidated statements of operations for the first quarter of 2026 compared to the prior year period:

Current wording

The following table summarizes our consolidated statements of operations for the second quarter of 2026 compared to the prior year period:

Previous wording

◦Owned and operated retail stores – Revenue increased 5% compared to the prior year period, including a 4% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in Americas and APAC was partially offset by a decline in EMEA.

Current wording

◦Owned and operated digital commerce – Revenue increased 4% compared to the prior year period, including a 1% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in Americas and EMEA was partially offset by a decline in APAC.

Previous wording

Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of product, such as inbound freight costs, purchasing and receiving costs, inspection costs and tariffs and other import costs. Also included as cost of goods sold are the amounts recognized on foreign currency forward contracts as the underlying inventory hedged by such forward exchange contracts is sold. Warehousing and distribution expenses are included in selling, general and administrative (“SG&A”) expenses. Revenue from licensing the use of our trademarks is included in gross profit because there is no cost of goods sold associated with such revenue. As a result, our gross profit may not be comparable to that of other entities.

Current wording

Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of products, such as inbound freight costs, purchasing and receiving costs, inspection costs and tariffs and other import costs. Also included as cost of goods sold are the amounts recognized on foreign currency forward contracts as the underlying inventory hedged by such forward exchange contracts is sold. Warehousing and distribution expenses are included in selling, general and administrative (“SG&A”) expenses. Revenue from licensing the use of our trademarks is included in gross profit because there is no cost of goods sold associated with such revenue. As a result, our gross profit may not be comparable to that of other entities.

Previous wording

Gross profit in the first quarter of 2026 was $1.186 billion, or 58.6% of total revenue, compared to $1.162 billion, or 58.6% of total revenue, in the first quarter of the prior year. Gross profit as a percentage of revenue was flat compared to the prior year period and included (i) a negative impact of the tariffs on goods coming into the United States, (ii) an increase in promotional selling as compared to the prior year period, and (iii) a decline due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins. These declines were offset by the favorable impacts of (i) tariff mitigation actions, (ii) lower product costs, including the favorable transactional impact of foreign exchange on our international businesses, particularly our European business and (iii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher gross margins.

Current wording

Gross profit in the second quarter of 2026 was $1.322 billion, or 63.0% of total revenue, compared to $1.251 billion, or 57.7% of total revenue, in the second quarter of the prior year. Approximately 510 of the 530 basis point increase in gross margin was due to the benefit from tariff refunds. The remaining 20 basis point increase compared to the prior year period included the favorable impacts from (i) lower product costs, including the favorable transactional impact of foreign exchange on our international businesses, particularly our European business and (ii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher gross margins, partially offset by (i) an increase in promotional selling as compared to the prior year period in EMEA, (ii) the incremental negative impact of the tariffs on goods coming into the U.S., net of mitigation actions, and (iii) a decline due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins.

Previous wording

Non-service related pension and postretirement cost was $1 million in each of the first quarters of 2026 and 2025. Please see Note 6, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Current wording

Non-service related pension and postretirement cost was $1 million in each of the second quarters of 2026 and 2025. Please see Note 6, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Previous wording

The equity in net income of unconsolidated affiliates was $13 million in the first quarter of 2026 compared to $10 million in the first quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in the United States and Canada. The equity in net income of unconsolidated affiliates for the first quarter of 2026 increased as

Current wording

The equity in net income of unconsolidated affiliates was $14 million in the second quarter of 2026 compared to $12 million in the second quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGER and Calvin Klein brands and certain licensed trademarks in the United States and Canada. The equity in net income of unconsolidated affiliates for the second quarter of 2026 increased compared to the prior year period primarily due to an increase in income attributable to our PVH Legwear LLC joint venture. Our investments in the joint ventures are being accounted for under the equity method of accounting.

Previous wording

Income (loss) before interest and taxes in thefirst quarter of 2026 was $124 million, or 6.1%, of total revenue, compared to $(332) million, or (16.7)% of total revenue, in the first quarter of the prior year, and included changes in our segments’ income (loss) before interest and taxes and other reconciling items as follows:

Current wording

(Loss) income before interest and taxes in thesecond quarter of 2026 was $(191) million, or (9.1)% of total revenue, compared to $133 million, or 6.1% of total revenue, in the second quarter of the prior year, and included changes in our segments’ income (loss) before interest and taxes and other reconciling items as follows:

Previous wording

•Corporate and other costs were $236 million in thefirst quarter of 2026, an increase of $27 million compared to $209 million in the prior year period, primarily due to (i) an increase in marketing and other brand-building investments and (ii) an increase in centrally managed information technology and support costs resulting from the actions taken in conjunction with the Growth Driver 5 initiative to move to a single global technology stack and streamline and optimize our support functions globally. Overall, the Growth Driver 5 initiative drove significant savings in the first quarter with savings in the regional segments more than offsetting the increase in Corporate information technology and support costs.

Current wording

•Corporate and other costs were $243 million in thesecond quarter of 2026, an increase of $33 million compared to $210 million in the prior year period, primarily due to (i) an increase in marketing and other strategic investments and (ii) an increase in centrally managed information technology and support costs resulting from the Growth Driver 5 Actions taken in respect of the initiatives to move to a single global technology stack and streamline and optimize our support functions globally. Overall, the Growth Driver 5 Actions drove significant savings in the second quarter with savings in the regional segments more than offsetting an increase in Corporate information technology and support costs.

Previous wording

•Restructuring and other items included $7 million of restructuring costs in thefirst quarter of 2026 in connection with the Growth Driver 5 Actions, consisting principally of severance. Restructuring and other items included $493 million of expenses in the first quarter of the prior year including (i) $480 million of noncash goodwill and other intangible asset impairment charges and (ii) $13 million of restructuring costs in connection with the Growth Driver 5 Actions, consisting principally of severance.

Current wording

•Restructuring and other items were $423 million and included (i) the $439 million pre-tax noncash goodwill impairment charge and (ii) the net gain of $15 million related to the Growth Driver 5 Actions, consisting of a $25 million gain on the sale of an owned warehouse and distribution center partially offset by $10 million of restructuring costs, consisting principally of severance. Restructuring and other items were $45 million in the second quarter of the prior year including restructuring costs in connection with the Growth Driver 5 Actions, consisting principally of severance.

Previous wording

The effective income tax rate for the first quarter of 2026 reflected a $21 million income tax expense recorded on $109 million of pre-tax income. The effective income tax rate for the first quarter of 2025 reflected a $(305) million income tax benefit recorded on $(350) million of pre-tax losses.

Current wording

The effective income tax rate for the second quarter of 2026 reflected a $(100) million income tax benefit recorded on $(203) million of pre-tax losses. The effective income tax rate for the second quarter of 2025 reflected a $(113) million income tax benefit recorded on $111 million of pre-tax income.

Previous wording

The effective income tax rate for thefirst quarter of 2026 was lower than the prior year period primarily due to the impact of the $480 million pre-tax noncash goodwill and other intangible asset impairment charges in the prior year period, which were non-deductible for tax purposes and factored into our annualized effective income tax rate in 2025, and resulted in a 70.5% increase to our effective income tax rate for the first quarter 2025.

Current wording

The effective income tax rate for thesecond quarter of 2026 was higher than the prior year period primarily due to the impacts from (i) the $439 million pre-tax noncash goodwill impairment charge recorded in the second quarter of 2026, which was non-deductible for tax purposes and factored into our annualized effective income tax rate in 2026, and resulted in a 26.9% increase to our effective income tax rate for the second quarter of 2026 and (ii) the $480 million pre-tax noncash goodwill and other intangible asset impairment charges recorded in the first quarter of 2025, which were non-deductible for tax purposes and factored into our annualized effective income tax rate in 2025, resulting in a (122.9)% decrease to our effective income tax rate for the second quarter 2025.

Previous wording

Total revenue in the first quarter of 2026 was $2.025 billion compared to $1.984 billion in the first quarter of the prior year. The overall increase in revenue of $42 million, or 2%, included a positive impact of $87 million, or 4%, related to foreign currency translation.

Current wording

Total revenue in the twenty-six weeks ended August 2, 2026 was $4.122 billion compared to $4.151 billion in the twenty-six week period of the prior year. The overall decrease in revenue of $29 million, or 1%, included a positive impact of $91 million, or 2%, related to foreign currency translation.

Previous wording

•EMEA – Revenue increased $18 million, or 2%, compared to the prior year period, including a positive impact of $67 million, or 7%, related to foreign currency translation. Excluding the impact of foreign currency translation, the decrease in revenue was driven by declines in both the direct-to-consumer and wholesale businesses, including softer consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic pressures.

Current wording

•EMEA – Revenue decreased $44 million, or 2%, compared to the twenty-six week period of the prior year, including a positive impact of $66 million, or 3%, related to foreign currency translation, and the continued soft consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic impacts. Excluding the impact of foreign currency translation, the decrease in revenue was driven by a decline in the wholesale businesses. In the direct-to-consumer business, growth in digital commerce revenue was more than offset by a decrease in stores.

Previous wording

•Americas – Revenue decreased $6 million, or 1%, compared to the prior year period, including a positive impact of $5 million, or 1%, related to foreign currency translation, as growth in the direct-to-consumer business was more than offset by a decrease in the wholesale business. The decrease in wholesale revenue included (i) a decrease in the first quarter related to the overall impact of a shift in the timing of wholesale shipments from the first half of the year to the second half as compared to the prior year period, partially offset by (ii) an increase driven by the transition of previously licensed women’s product categories in house.

Current wording

•Americas – Revenue decreased $9 million, or 1%, compared to the twenty-six week period of the prior year, including a positive impact of $5 million, or less than 1%, related to foreign currency translation, as growth in the direct-to-consumer business was more than offset by at decrease in the wholesale business. The decline in wholesale revenue included (i) a decrease due to a shift in the timing of wholesale shipments, primarily in the Calvin Klein business, to the second half of this year as compared to the prior year period partially offset by (ii) an increase associated with the transition in-house of previously licensed TOMMY HILFIGER women’s product categories.

Previous wording

•APAC –Revenue increased $35 million, or 10%, compared to the prior year period, including a positive impact of $15 million, or 4%, related to foreign currency translation. Excluding the impact of foreign currency translation, the increase in revenue included an approximately 4% favorable impact from the timing of Lunar New Year, which occurred in the first quarter of 2026 but did not occur in the first quarter of 2025. An increase in revenue in the direct-to-consumer business was partially offset by a decrease in wholesale business.

Current wording

•APAC –Revenue increased $44 million, or 6%, compared to the twenty-six week period of the prior year, including a positive impact of $20 million, or 3%, related to foreign currency translation and a 2% favorable impact from the timing of Lunar New Year, which occurred in the first quarter of 2026 but did not occur in the first quarter of 2025. Excluding the impact of foreign currency translation, the increase in revenue reflected growth in the direct-to-consumer business partially offset by a decrease in the wholesale business.

Previous wording

•Direct-to-consumer – Revenue increased 6% compared to the prior year period including a 4% positive foreign currency impact.

Current wording

•Direct-to-consumer – Revenue increased 3% compared to the twenty-six week period of the prior year including a 2% positive foreign currency impact.

Previous wording

•Wholesale – Revenue was flat compared to the prior year period, including a 5% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue decreased in all regions.

Current wording

◦Owned and operated retail stores – Revenue increased 2% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in APAC was largely offset by declines in EMEA and Americas.

Previous wording

◦Owned and operated digital commerce – Revenue increased 11% compared to the prior year period, including a 4% positive foreign currency impact, with revenue increasing across all regions.

Current wording

◦Owned and operated digital commerce – Revenue increased 7% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact, with revenue increasing across all regions.

Previous wording

We currently expect that gross margin for the full year 2026 will increase by approximately 100 basis points compared to 2025, with increases particularly impacting the second quarter despite (i) the assumed approximately 215 basis point gross negative impact in 2026 of the tariffs on goods coming into the United States, compared to the approximately 80 basis point gross negative impact in 2025, (ii) the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business, and (iii) an increase in promotional selling as compared to the prior year. These decreases are expected to be more than offset by (i) an approximately 100 basis point impact related to the IEEPA tariff refunds, which are expected to be recorded in the second quarter of 2026, (ii) the impact of planned mitigation actions to address the impacts of tariff costs, (iii) lower product costs, including the approximately 50 basis point favorable transactional impact of foreign exchange on our international businesses as discussed above, and (iv) the absence of higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays in 2025.

Current wording

We currently expect that gross margin for the full year 2026 will increase approximately 100 basis points compared to 2025. This outlook reflects (i) the approximately 120 basis point benefit from tariff refunds recognized in the second quarter of 2026, (ii) lower product costs, including the approximately 50 basis point favorable transactional impact of foreign exchange on our international businesses as discussed above and (iii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel as discussed above. These increases are expected to be partially offset by (i) the negative impact of the tariffs on goods coming into the U.S., net of mitigation actions, (ii) an increase in promotional selling as compared to the prior year period, and (iii) the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business.

Previous wording

SG&A expenses in the first quarter of 2026 were $1.074 billion, or 53.1% of total revenue, compared to $1.024 billion, or 51.6% of total revenue, in the first quarter of the prior year. The 150 basis point increase was primarily driven by (i) an increase in strategic investments to fuel growth, including increased marketing, (ii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher SG&A expenses as a percentage of revenue and (iii) the impact from the deleveraging of expenses partially offset by (i) cost savings resulting from the Growth Driver 5 Actions and (ii) a net decrease in restructuring costs incurred in the first quarter of 2026 in connection with the Growth Driver 5 Actions compared to the prior year period.

Current wording

SG&A expenses in thetwenty-six weeks ended August 2, 2026 were $2.187 billion, or 53.1% of total revenue, compared to $2.153 billion, or 51.9% of total revenue, in the twenty-six week period of the prior year. The 120 basis point increase was primarily driven by (i) an increase in marketing and other strategic investments, (ii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher SG&A expenses as a percentage of revenue, and (iii) the impact from the deleveraging of expenses partially offset by (i) cost savings resulting from the Growth Driver 5 Actions and (ii) a net decrease in restructuring costs incurred in connection with the Growth Driver 5 Actions compared to the twenty-six week period of the prior year.

Previous wording

We currently expect that SG&A expenses as a percentage of revenue for the full year 2026 will be relatively flat compared to 2025 with increases in SG&A expenses as a percentage of revenue more significantly impacting the first half of 2026, including higher marketing spend. SG&A expenses as a percentage of revenue for the full year are expected to include an approximately 100 basis point decrease resulting from a decrease in restructuring costs incurred in 2026 as compared to 2025 in connection with the Growth Driver 5 actions. This decrease is expected to be offset by the net impact of an increase in strategic investments to fuel growth, including increased marketing, and the impact from the deleveraging of expenses partially offset by the cost savings resulting from the Growth Driver 5 actions. Our expectation for 2026 includes the restructuring costs incurred in the first quarter of 2026 in connection with the Growth Driver 5 actions but does not include any further restructuring costs beyond the first quarter. We expect additional actions in 2026, however the impact of these remaining actions cannot be quantified at this time.

Current wording

We currently expect that SG&A expenses as a percentage of revenue for the full year 2026 will be relatively flat compared to 2025 as the 120 basis point increase in the first half of 2026, including an increase in marketing and other strategic investments, will be offset by a decrease in the second half of 2026. SG&A expenses as a percentage of revenue for the full year are expected to include an approximately 100 basis point decrease resulting from a decrease in restructuring costs incurred in 2026 as compared to 2025 in connection with the Growth Driver 5 Actions. This decrease is expected to be offset by the net impact of(i) an increase in marketing and other strategic investments and (ii) the impact from the deleveraging of expenses partially offset by (iii) the cost savings resulting from the Growth Driver 5 Actions. Our expectation for 2026 includes the $17 million restructuring costs incurred in the first twenty-six weeks of 2026 in connection with the Growth Driver 5 Actions but does not include any further restructuring costs beyond August 2, 2026. Restructuring costs incurred in the full year 2025 in connection with the Growth Driver 5 Actions were $93 million. We expect additional actions, on a limited basis, in 2026, however the impact of these remaining actions cannot be quantified at this time.

Previous wording

We recorded noncash impairment charges of $480 million during the first quarter of 2025 in conjunction with interim goodwill and other intangible assets impairment tests, including $426 million related to goodwill and $54 million related to our Australia reacquired perpetual license rights, which were primarily due to a significant increase in discount rates. Please see Note 5, “Goodwill and Other Intangible Assets,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of these impairments.

Current wording

We recorded pre-tax noncash goodwill and other intangible asset impairment charges of $480 million during the first quarter of 2025 in conjunction with interim goodwill and other intangible assets impairment tests, including $426 million related to goodwill and $54 million related to our Australia reacquired perpetual license rights, which were primarily due to a significant increase in discount rates.

Previous wording

Non-service related pension and postretirement cost recorded throughout the year is calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions. Differences between estimated and actual results give rise to gains and losses that are recorded immediately in earnings, generally in the fourth quarter of the year, which can create volatility in our results of operations. We currently expect that non-service related pension and postretirement income for the full year 2026 will be approximately $3 million. However, our expectation of 2026 non-service related pension and postretirement income does not include the impact of an actuarial gain or loss. As a result of the volatility in the financial markets, there is significant uncertainty with respect to the actuarial gain or loss we may record on our retirement plans in 2026. We may record a significant actuarial gain or loss in 2026 if there is a significant increase or decrease in discount rates, respectively, or if there is a difference between the actual and expected return on plan assets. As such, our actual 2026 non-service related pension and postretirement income may be significantly different than our projections.

Current wording

Non-service related pension and postretirement cost recorded throughout the year is calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions. Differences between estimated and actual results give rise to gains and losses that are recorded immediately in earnings, generally in the fourth quarter of the year, which can create volatility in our results of operations. We currently expect that non-service related pension and postretirement cost for the full year 2026 will be approximately $3 million compared to income of $9 million in the twenty-six week period of the prior year, which included an actuarial gain of $13 million. Our expectation of 2026 non-service related pension and postretirement (cost) income does not include the impact of an actuarial gain or loss. As a result of the volatility in the financial markets, there is significant uncertainty with respect to the actuarial gain or loss we may record on our retirement plans in 2026. We may record a significant actuarial gain or loss in 2026 if there is a significant increase or decrease in discount rates, respectively, or if there is a difference between the actual and expected return on plan assets. As such, our actual 2026 non-service related pension and postretirement (cost) income may be significantly different than our projections.

Previous wording

We currently expect that our equity in net income of unconsolidated affiliates for full year 2026 will be relatively flat as compared to $45 million in 2025.

Current wording

We currently expect that our equity in net income of unconsolidated affiliates for full year 2026 will be approximately $50 million as compared to $45 million in 2025.

Previous wording

•EMEA –Income before interest and taxes in thefirst quarter of 2026 was $152 million, or 16.1% of total revenue, compared to $149 million, or 16.1% of total revenue in the first quarter of the prior year. A 30 basis point increase in gross margin was offset by a 30 basis point increase in SG&A expenses as a percentage of revenue. The increase in SG&A expenses as a percentage of revenue includes (i) an increase in marketing and (ii) a deleveraging of expenses resulting from the decrease in revenue excluding the impact of foreign currency translation partially offset by (iii) savings resulting from Growth Driver 5 Actions.

Current wording

•EMEA –Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $311 million, or 16.1% of total revenue, compared to $328 million, or 16.6% of total revenue in the twenty-six week period of the prior year. The 50 basis point decrease was primarily driven by an increase in SG&A expenses as a percentage of revenue which includes (i) an increase in marketing and other strategic investments, (ii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger portion of total revenue and carries higher SG&A expenses as a percentage of revenue, and (iii) a deleveraging of expenses resulting from the decrease in revenue. These increases were partially offset by savings resulting from Growth Driver 5 Actions. Gross margin was flat compared to the prior year period.

Previous wording

•Licensing –Income before interest and taxes in thefirst quarter of 2026 was $75 million, a 7% decrease compared to $81 million in the prior year period, primarily due to the license transitions in North America.

Current wording

•Licensing –Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $148 million, a 10% decrease compared to $166 million in the twenty-six week period of the prior year due to the license transitions in North America.

Previous wording

Interest expense, net for the full year 2026 is currently expected to be approximately $75 million as compared to $79 million in 2025.

Current wording

Interest expense, net for the full year 2026 is currently expected to be approximately $70 million as compared to $79 million in 2025.

Previous wording

We currently expect that our effective income tax rate for the full year 2026 will be in a range of 22% to 23%.

Current wording

The pre-tax noncash goodwill impairment charge will also result in a significant increase to our full year 2026 effective tax rate. Absent the impact of this impairment charge, we currently expect our effective income tax rate in 2026 will be in a range of 22% to 23%.

Previous wording

Cash and cash equivalents at May 3, 2026 was $593 million, a decrease of $109 million from $701 million at February 1, 2026. We ended the first quarter of 2026 with approximately $1.4 billion of borrowing capacity available under our various debt facilities. The seasonality of our business results in significant fluctuations in our cash balance during our fiscal year due, in part, to the timing of inventory purchases and peak sales periods.

Current wording

Cash and cash equivalents at August 2, 2026 was $966 million, an increase of $264 million from $701 million at February 1, 2026. We ended the second quarter of 2026 with approximately $1.7 billion of borrowing capacity available under our various debt facilities. The seasonality of our business results in significant fluctuations in our cash balance during our fiscal year due, in part, to the timing of inventory purchases and peak sales periods.

Previous wording

Cash flow for the full year 2026 will be impacted by various factors, including, as discussed further below in this “Liquidity and Capital Resources” section, (i) expected common stock repurchases under the stock repurchase program of at least $300 million, (ii) projected capital expenditures of approximately $250 million, (iii) net proceeds of $38 million received in the second quarter of 2026 in connection with the sale of the Jonesville, NC warehouse and distribution center, (iv) mandatory long-term debt repayments on our term loan under our 2022 senior unsecured credit facilities of approximately $13 million, subject to exchange rate fluctuations, and (v) offsetting impacts from cash inflows of approximately $100 million for refunds related to IEEPA tariffs previously paid and an expected reduction in cash due to the prolonged effects from the conflict in the Middle East.

Current wording

Cash flow for the full year 2026 will be impacted by various factors, including, as discussed further below in this “Liquidity and Capital Resources” section, (i) expected common stock repurchases under the stock repurchase program of at least $300 million, (ii) projected capital expenditures of approximately $250 million, (iii) net proceeds of $38 million received in the second quarter of 2026 in connection with the sale of the warehouse and distribution center in Jonesville, NC, (iv) net proceeds of $452 million from entering into the 2026 facilities (as defined below) in the second quarter of 2026, (v) the $461 million repayment of the 2022 facilities (as defined below) during the second quarter of 2026, (vi) mandatory long-term debt repayments on our term loans under our 2022 and 2026 facilities of approximately $9 million, subject to exchange rate fluctuations, and (vii) offsetting impacts from cash inflows of $107 million for refunds related to IEEPA tariffs previously paid and an expected reduction in cash due to the prolonged effects from the conflict in the Middle East.