PVH Corp (NYSE:PVH) stock fell 9.59% (As on December 4, 11:36:31 AM UTC-4, Source: Google Finance) after the company’s third-quarter profits slipped, but topped expectations as Stefan Larsson continued on the next leg of his journey, resetting Calvin Klein and Tommy Hilfiger while transforming the company from a key fashion consolidator into a more nimble brand builder. Net earnings fell to $4.2 million from $131.9 million due to a $121 million increase in tax expenses tied to goodwill and asset impairment charges taken in the first quarter. At Tommy Hilfiger, that shows up in the rush to the quarter zip sweater, which has been trending on TikTok, and at Calvin Klein, it’s a 20 percent increase in the brand’s Icon Cotton Stretch underwear with its “infinity waistband” that has no stitching. Overall, Calvin drove growth in key categories like underwear and fashion denim, while Tommy Hilfiger delivered growth in core lifestyle categories, elevating style icons through the Hilfiger Racing Club campaign

Moreover, in Europe, the company saw a tougher backdrop entering the fall, while in the Americas, the digital channels continued to outperform, and in APAC we again exceeded expectations, driven by strong DTC performance with a notable improvement in China. Despite the continued uneven global consumer environment, the company delivered an on-plan start to the Holiday season and Black Friday week in both Europe and North America. At the same time, the company continues to strengthen the data- and demand-driven supply chain, reflected in healthy inventory levels.

PVH in the third quarter of FY26 has reported the adjusted earnings per share of $2.83, beating the analysts’ estimates for the adjusted earnings per share of $2.56, according to the Zacks Consensus Estimate. While that excludes restructuring costs and tax-related items, adjusted EPS also included a 37cent hit from tariffs that was only partially offset by the company’s mitigation efforts. The company had reported the adjusted revenue growth of 2 percent to $2.29 billion in the third quarter of FY26, beating the analysts’ estimates for revenue by 1.16%.

For full year, the company narrows revenue outlook to up low single-digits compared to increase slightly to up low single-digits previously. PVH reaffirms outlook of flat to increase slightly on a constant currency basis. For Operating margin, the company reaffirms outlook of approximately 8.5% on a non-GAAP basis. For EPS, the company narrows outlook to a range of $10.85 to $11.00 on a non-GAAP basis compared to $10.75 to $11.00 previously.