PVH: More Trouble in EMEA, Core Outlook Cut; Reiterate EW, PT to $78

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PVH: More Trouble in EMEA, Core Outlook Cut; Reiterate EW, PT to $78

highlighted pos spring selling and e-comm, the Prior 1.74 E 2.24 E 3.28 E 4.76 E 11.95 E

ongoing Iran conflict has caused a sharp impact to in-store traffic/wholesale demand in 2027E 1.96 E 2.17 E 3.01 E 4.19 E 11.25 E

April (slightly better in May), which led to walking back segment revs (FY now -MSD, run- Prior 2.41 E 2.74 E 3.68 E 4.87 E 13.64 E

rating Apr/May) and material impact to margins which was split between 1) the direct Source: Company Data, Wells Fargo Securities estimates, and Factset.

impact to the ME wholesale demand, 2) Knock-on effect to Turkey (reduced tourism) and NA = Not Available, NC = No Change, NE = No Estimate

3) the broader indirect impact across the region via higher fuel prices.

Ike Boruchow

Equity Analyst | Wells Fargo Securities, LLC

Margin Puts and Takes. While PVH maintained FY margin plan, this now includes $100M Ike.Boruchow@wellsfargo.com | 212-214-8024

in tariff refunds (payable in 2Q), which is effectively offsetting a weaker core. There are 3 Robert Bischoff

main components to call out here, 1) a much weaker EU driving the bulk of the offset, 2) Associate Equity Analyst | Wells Fargo Securities, LLC

increased energy costs driving higher freight + fuel costs (GM's cut to flat, from +slightly) Robert.Bischoff@wellsfargo.com | 305-329-6777

and 3) previously planned higher marketing spend (+50bps to 6%). This will shift mix to Paul Kearney

higher GM's, offsetting +100bps SG&A deleverage. Associate Equity Analyst | Wells Fargo Securities, LLC

Paul.D.Kearney@wellsfargo.com | 212-214-4837

License Update. With ~60% of the license intake from GIII occurring this year (following Juliana Duque