PVH Corp. Set to Report Q2 Earnings: Here's What Investors Should Know

PVH Corporation PVH is likely to post a year-over-year increase in its bottom line when it reports second-quarter fiscal 2026 results on Sept. 2, after market close. The Zacks Consensus Estimate for quarterly earnings is pegged at $3.08 per share, indicating an increase of 22.2% from the prior-year number. However, the consensus estimate for revenues has dipped a penny in the past 30 days.

The consensus estimate for quarterly revenues is pegged at $2.1 billion, indicating a decrease of 3.2% year over year.

In the last reported quarter, the company delivered an earnings surprise of 11.7%. It has a trailing four-quarter earnings surprise of 16.5%, on average.

Factors Likely to Have Impacted PVH’s Q2 Earnings

PVH Corp.’s quarterly results are expected to reflect continued benefits from the ongoing execution of the PVH+ Plan and improving momentum across its iconic brands, Calvin Klein and Tommy Hilfiger. The company has been witnessing strength in direct-to-consumer (DTC) channels, particularly e-commerce, supported by stronger consumer engagement, increased traffic and focused marketing investments. The company is focused on strengthening its core brands by targeting key consumer segments, expanding product innovation and concentrating on high-potential categories. The Zacks Consensus Estimate for DTC revenues is pegged at $1 billion for the quarter under review.

Calvin Klein is emphasizing underwear and denim, while Tommy Hilfiger is focusing on sweaters, outerwear, shirts and knits. PVH is also accelerating its shift toward a more data and demand-driven operating model. Its enterprise data platform and partnerships with OpenAI and Salesforce are helping connect consumer, product and operational insights to improve decision-making and respond more quickly to demand. The company is simultaneously investing in its shopping experience, including e-commerce, stores and shop-in-shops, while strengthening its supply chain and inventory management. The Zacks Consensus Estimate for Calvin Klein and Tommy Hilfiger brands’ revenues is pegged at $953 million and $1.1 billion, respectively, showing sequential increases of 6.5% and 2.9%.

On its last earnings call, PVH had forecast a non-GAAP operating margin of about 9.5%, up from 8.2% in the year-ago period, reflecting an estimated positive impact of roughly 470 basis points tied to tariff refunds. Management had projected non-GAAP earnings to be $3.00-$3.10 per share compared with $2.52 a year ago, including an estimated $0.05 per-share benefit from foreign currency translation.

However, PVH continues to operate against a challenging global consumer backdrop. The prolonged Middle East conflict has been weighing on the EMEA business through weaker wholesale demand in the Middle East, reduced tourism and softer demand in Turkey, as well as lower consumer traffic and spending across Europe. Higher fuel costs and weak consumer sentiment are likely to have remained pressure points. Tariffs also remain a significant margin headwind. In addition, cautious wholesale partners, particularly in APAC, continued to weigh on sales, while higher marketing investments and softer revenue expectations are contributing to SG&A deleverage. These challenges could weigh on PVH’s performance.

On its last earnings call, PVH had expected approximately $195 million in gross tariff costs in EBIT, equivalent to an unfavorable impact of about 215 basis points on operating margin, although tariff refunds and mitigation actions are expected to have partly offset the pressure. PVH had expected second-quarter fiscal 2026 revenues to decline 3-4% year over year, with revenues projected to decrease 4-5% on a constant-currency basis.

What the Zacks Model Unveils for PVH

Our proven model does not conclusively predict an earnings beat for PVH Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

PVH Corp. has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

PVH’s Valuation Picture

From a valuation perspective, PVH Corp.’s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 6.01X, below the five-year median of 7.73X and the Textile - Apparel industry’s average of 14.99X, the stock offers compelling value for investors seeking exposure to the sector.

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The recent market movements show that PVH’s shares have gained 8.7% in the past six months against the industry's 6.1% decline.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Boyd Gaming Corporation BYD currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. BYD is likely to register a top-line decrease when it reports third-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1 billion, indicating a 0.04% drop from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BYD’s third-quarter earnings is pegged at $1.74 a share, implying a 1.2% rise from the year-earlier quarter. BYD has a trailing four-quarter average earnings surprise of 5.4%.

Cintas Corporation CTAS currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings per share is pegged at $1.35, which implies 12.5% year-over-year growth.

The consensus estimate for quarterly revenues is pegged at nearly $3 billion, implying 9.2% year-over-year growth. CTAS has a trailing four-quarter earnings surprise of 1.8%, on average.

Carnival CCL currently has an Earnings ESP of +0.32% and a Zacks Rank of 3. CCL is likely to register growth in its top line when it reports third-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $8.4 billion, indicating a 2.6% increase from the figure in the year-ago quarter.
 
The consensus estimate for CCL’s earnings is pegged at $1.36 per share, implying a 4.9% drop from the year-ago quarter’s actual. CCL displays a trailing four-quarter earnings surprise of 18.2%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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