PVH ended the latest six months with $1.7 billion of inventory, down 2.9% from a year earlier. Revenue fell slightly faster, 3.2%, to $2.1 billion. The racks got a little lighter, but the income statement got stranger.
Gross profit still rose 5.7% to $1.3 billion, lifting gross margin from 57.7% to 63.0%. That is the surface-level read: PVH sold less, but kept more of each sales dollar.
Then operating income swung from a $133.2 million profit to a $190.9 million loss. Net income moved from a $224.2 million profit to a $102.9 million loss. The same six months also produced $336.4 million of operating cash flow, up from $141.7 million.
The company does not disclose, in the supplied filing receipts, what drove the operating-income swing. It does flag a source of potential earnings volatility tied to pension accounting:
"Actual results could differ from these assumptions, which would require adjustments to our balance sheet and could result in volatility in our future pension expense."
10-Q 2026-09-02
That warning does not quantify the current hit, so it cannot by itself explain the $324.1 million change in operating income. It does put a boundary around the clean-looking gross-margin improvement: more gross profit did not translate into more operating profit.
The filing also adds a business risk that sits closer to the revenue line. PVH says China’s Ministry of Commerce investigated the company, placed it on the List of Unreliable Entities, and could impose fines or restrictions.
"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 Item 1A."
10-Q 2026-09-02
PVH also says it does not know whether MOFCOM will impose measures, or what they would be. That leaves the China issue as a disclosed exposure, not an explanation for every line in the six-month results.
Geography offers no single clean culprit in the reported sales. EMEA revenue fell 5.9% to $986.3 million, while Asia Pacific rose 2.5% to $343.7 million. The Americas were nearly flat, and licensing declined.
Cash improved sharply, with the balance rising to $965.9 million from $248.8 million. Capex increased 31.3% to $76.0 million, while diluted shares fell 4.9% to 46.1 million. Those balance-sheet and per-share changes matter, but they do not turn an operating loss into operating income.
PVH’s annual record supplies some context without resolving the mismatch. Revenue was $9.0 billion in the fiscal year ended February 1, while operating margin was 2.6%, after 8.9% the year before. The latest six-month operating margin, at negative 9.1%, arrives against a business that was already generating a thin annual operating cushion.
PVH’s next report would clarify whether MOFCOM has imposed any measures and whether the pension-related volatility has appeared as a quantified operating expense. For now, the filing leaves one plain tension: less revenue, more cash, and no operating profit.
PVH’s latest six months show gross-margin expansion and higher operating cash flow alongside a negative operating margin.