PVH Corporation PVH is likely to post a year-over-year increase in its top line when it reports first-quarter fiscal 2026 results on June 3, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a rise of 0.7% from the prior-year number.
Although the consensus estimate for earnings has increased a penny to $1.80 per share, the metric indicates a decrease of about 22% year over year.
In the last reported quarter, the company delivered an earnings surprise of 15.8%. It has a trailing four-quarter earnings surprise of 14.2%, on average.
Factors Likely to Impact PVH’s Q1 Earnings
PVH Corp.’s quarterly results are expected to reflect continued benefits from its diversified global brand portfolio and the ongoing execution of the PVH+ Plan. The company is witnessing strength across its two flagship brands, Calvin Klein and Tommy Hilfiger, driven by product innovation, improving direct-to-consumer (DTC) performance in key markets and successful global marketing campaigns. The Zacks Consensus Estimate for DTC revenues is pegged at $84 million for the quarter under review.
The company is focused on strengthening its core brands by enhancing brand desirability, expanding product innovation and improving marketplace execution. The Zacks Consensus Estimate for Calvin Klein and Tommy Hilfiger brands’ revenues is pegged at $914 million and $1.062 billion, respectively, showing year-over-year increases of 3.2% and 1.3%. PVH’s strategy of innovation and product expansion, with continued focus on core categories such as underwear, denim and apparel, appears encouraging.
PVH is also accelerating its shift toward a more consumer-centric and data-driven operating model. Investments in digital capabilities and analytics are enabling the company to better understand consumer behavior, enhance engagement and improve retention. This is complemented by strong growth in DTC channels, including both e-commerce and physical retail, where PVH is focused on elevating the consumer experience and increasing average unit retail. Such factors position PVH to witness improved top-line results in the quarter under review.
However, PVH has been operating in an uneven global consumer landscape. On its last earnings call, management anticipated the tariffs currently in place to have an overall net negative impact on earnings in fiscal 2026. Tariffs are likely to weigh heavily on the year-over-year gross margin comparisons in the first half. In Q1, it had projected a gross tariff impact of about 230 basis points, nearly half of which it expects to have been offset by tariff mitigation efforts. Any deleverage in SG&A costs, along with a weak consumer landscape in EMEA and softness in wholesale channel, remains concerning. These limitations are likely to have hurt the company’s bottom-line performance in the quarter under review.
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 -0.10% and a Zacks Rank of 2. 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 3.01X, below the five-year median of 3.61X and the Textile - Apparel industry’s average of 15.50X, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that PVH’s shares have increased 12.9% in the past six months against the industry's 4.9% 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.
Churchill Downs Incorporated CHDN currently has an Earnings ESP of +3.54% and a Zacks Rank of 2. CHDN is likely to register a top-line increase when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $976.4 million, indicating a 4.5% rise 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 CHDN’s second-quarter earnings is pegged at $3.58 a share, implying a 3.1% increase from the year-earlier quarter. CHDN has a trailing four-quarter average earnings surprise of 10.7%.
Boyd Gaming Corporation BYD currently has an Earnings ESP of +0.05% and a Zacks Rank of 3. BYD is likely to register a top-line decrease when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1 billion, indicating a 0.9% drop from the figure reported in the year-ago quarter.
The consensus estimate for BYD’s second-quarter earnings is pegged at $1.89 a share, implying a 1.1% rise from the year-earlier quarter. BYD has a trailing four-quarter average earnings surprise of 7.5%.
Carnival CCL currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. CCL is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.6 billion, indicating a 4.7% increase from the figure in the year-ago quarter.
The consensus estimate for CCL’s earnings is pegged at 34 cents per share, implying a 2.9% drop from the year-ago quarter’s actual. CCL displays a trailing four-quarter earnings surprise of 25.3%, on average.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL): Free Stock Analysis Report
Boyd Gaming Corporation (BYD): Free Stock Analysis Report
PVH Corp. (PVH): Free Stock Analysis Report
Churchill Downs, Incorporated (CHDN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).