PVH Corp.

Good morning, everyone, and welcome to today's PVH second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one keys on your touchtone phone. Please note this call may be recorded and that I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to Kate Howard, Senior Director of Investor Relations.

Thank you, Operator. Good morning, everyone, and welcome to the PVH Corp. Second Quarter 2026 Earnings Conference Call. Leading the call today will be Stefan Larsson, Chief Executive Officer, and Melissa Stone, Interim Chief Financial Officer and Executive Vice President, Global Financial Planning and Analysis. Alexi Rollier, our incoming Chief Financial Officer, has joined PVH, and we look forward to having him lead our third quarter 2026 earnings conference call along with Stefan. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material. It may not be recorded, rebroadcast, or otherwise transmitted without PVH's written permission. Your participation constitutes your consent to having anything you say appear on any transcript or replay of this call. The information to be discussed includes forward-looking statements that reflect PVH's view as of September 2, 2026, of future events and financial performance. These statements are subject to risks and uncertainties indicated in the company's SEC filings and the safe harbor statement included in the press release that is the subject of this call. PVH does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimates regarding revenue or earnings. Generally, the financial information and projections to be discussed will be on a non-GAAP basis, as defined under SEC rules. Reconciliations to GAAP amounts are included in PVH's second quarter 2026 earnings release, which can be found on www.pvh.com and in the company's current report on Form 8K furnished to the SEC in connection with the release. At this time, I am pleased to turn the conference over to Stefan Larsson.

Thank you, Kate, and good morning, everyone, and thank you for joining our call today. I would like to start by acknowledging our Calvin Klein, Tommy Hilfiger, and PVH teams around the world. Thanks to your hard work, we continue to make meaningful progress on our multi-year PVH Plus plan. During the second quarter, we built momentum while navigating a dynamic environment, achieving our revenue guidance, and beating on profitability. This morning, I'm also thrilled to formally welcome our new chief financial officer, Alexey Rolyar, to PVH. Alexey will officially join us in New York next week. He comes to us with deep financial and operational experience, most recently as the global CFO and COO at Sephora, where he drove disciplined growth and significant profit expansion. Alex's experience combining consumer-facing improvements with effective financial steering will help us deliver our PVH Plus plan and drive long-term shareholder value. I can't wait for you all to get to know him. Now, on to a discussion of the second quarter. This morning, I'm going to start with an overview of the results. before turning to progress on our PBH Plus plan and we'll end with our thoughts on the remainder of the year and future opportunities. Turning to the second quarter, we delivered revenues in line with our guidance across all three regions and our licensing business. Calvin Klein and Tommy Hilfiger revenues were in line with expectations with consistent year-over-year revenue performance excluding the impacts of wholesale shipment timing. We continue to drive momentum in our D2C business, led by growth in both APAC and Americas, while the wholesale business was impacted by the tough macro environment in Europe. E-commerce continued to be a source of strength, supported by strong year-over-year increases in online traffic across both brands, with Calvin up double digits and Tommy up high single digits. These results reflect the overall progress we are making in elevating our product, marketing, and the consumer experience. We beat our guidance on all elements of profitability. Importantly, our gross margins excluding tariff refunds improved year over year and were above expectations. We continue to lean into our strong cost discipline while remaining committed to a balanced approach to investment that prioritizes brand building in support of the PBH Plus plan. We ended the quarter with very good inventory levels, down 3% versus last year, and we are well positioned for fall and holiday with improved stock freshness. Turning to our performance by region. Across the regions, our performance was in line with our expectations. We drove D2C growth across the Americas and APAC and delivered better than expected gross margin expansion across both brands. In the Americas, our business remained resilient, driven by e-commerce growth, strong AUR expansion, and disciplined execution. In APAC, we saw continued strength in D2C, led by stores and better than expected gross margin performance. Stronger consumer engagement drove higher conversion and AUR growth with strengthened promotion management. In EMEA, we delivered on our revenue guidance for the quarter and drove e-commerce growth across both brands. We also improved D2C versus the prior quarter. While the wholesale channel remained under pressure, reflecting the challenging environment. Turning to licensing, which is a significant high-value business for us, generating over 350 million in annual revenue and supporting more than 3 billion in licensed net sales globally. Licensing is a recurring, growing, strong, profitable revenue stream. Thank you very much. Thank you very much. Turning to the drivers of our Q2 performance, we are relentless in delivering on our PVH Plus plan, and we continue to build momentum while navigating a dynamic business environment. Now, let's take a moment to discuss the progress we have made across each pillar of the plan. When we connect all parts of the consumer journey, all the way to our doors and stores, we drive real commercial impact. And during the quarter, we continue to sharpen our consumer focus, deliver stronger products, and engage our consumers. We cut through 360 marketing, all while improving the marketplace experience in both D2C and wholesale. Let me share some specific examples that demonstrate the meaningful progress we continue to make this quarter. Starting with building strength with the consumer. We know that both brands outperform with Gen C and younger millennials. And within those, perform strongly with the highest value consumer segments. The Status Shopper and The Style Enthusiast. We continue to focus our investments on reaching these power segments, and we are seeing early signs that it's helping us acquire and retain high-quality consumers who shop more often, are less price sensitive, and are more loyal. And we see this in our acquisition of online consumers, which is up significantly across both brands. We see it in the performance in the Americas and APAC where we are driving B2C growth with higher pricing power and we see it in our growing number of returning consumers at both Calvin and Tommy. Next is product. During the quarter, once again, we grew multiple full hero categories in D2C, where we have the biggest right to win. Specifically, in Calvin Klein Denim, global sales rose double digits across both men's and women's, with women's jeans a particular standout as consumers responded really well to our new take on Calvin icons, leading to very strong gross margins and AURs up double digits. and in Calvin Klein Underwear, we drove low single-digit global growth for the total category with mid-single AUR improvement. And at Tommy, D2C growth was driven by sweaters, which were up double digits, and shirts and polos, which were both up mid-single digits, with linen a particular standout across categories, rising over 30% across all regions. Third, we continue to drive strong consumer engagement, increasingly connecting all the parts of the consumer journey end-to-end. As previously discussed, we strategically increased our marketing spend in the first half of the year. And this investment, together with a sharper focus on our target consumer segments, delivered low single-digit e-commerce growth across both Calvin and Tommy, with improvements in share of online search. In Calvin Klein, the standout moment this quarter was John Cook for Calvin Klein. It's John Cook's first product collaboration with us and our most successful global product collaboration in the history of the brand. John Cook is a global phenomena with a unique ability to connect with fans across regions and demographics. By linking the campaign's product, marketing, and immersive retail activations globally, our teams created a true cultural moment that drove $5 billion in social media reach, triple-digit growth in e-commerce traffic compared to the spring brand campaign, and over 90% global sell-through. This collaboration is such a powerful example of how we can successfully deliver 360 global brand activations. In Tommy, through our global partnership with Liverpool Football Club, we invited consumers into an iconic summer of soccer and style. Together with Cadillac Formula One, USLGP, and our other partnerships, we continue to connect our iconic brand and products to growing influential sport and entertainment platforms. Leveraging Tommy's unique heritage across fashion, art, music, entertainment, and sport. Finally, we also continue to upgrade our marketplace experience across both brands, further investing in the shopping experience across digital, shopping shops, and store concepts. Globally, we have now completed over 120 refurbishments and relocations and over 130 new store openings year to date. Looking at recent performance across regions and brands, I like where we are positioned. There is still more work to be done, but we are making good progress. And I'm optimistic that we will build on this momentum as we continue to thoughtfully execute the PVH Plus plan. This morning, I would also like to share an update on our cost management actions. We have extended beyond our traditional one-time programmatic cost actions to focus on more systematic repeatable ways to become more efficient. We are embedding a culture of cost discipline in two main ways. First, we have globalized and centralized our indirect procurement capabilities to optimize spend by consolidating our indirect supplier base, standardizing our ways of working, and operating as one global team to leverage the full PVH scale across key areas, including global freight cost, packaging, parcel sourcing, marketing production, Second, we are now driving enterprise-wide cost management by spend category, with senior leaders responsible for optimizing how we use our resources more effectively and more efficiently against our PVH Plus priorities. Through these efforts, we are reducing cost across nearly a dozen categories and have already confirmed annualized run rate savings of approximately $45 million. with a portion of these savings in 2026 and a full realization in 2027. This is important work and we are committed to finding next level sustainable cost savings. It's one of the many areas, along with his global brand building expertise, where Alexis' experience is highly relevant and identifying further cost opportunities will be a key priority in the upcoming months. While cost savings are a top priority, it doesn't come at the expense of our brand building efforts to further strengthen our products, consumer engagement, and marketplace presence. Just last week, Calvin Klein launched a new denim campaign featuring Grammy-nominated pop sensation Tate McRae. It's a great example of how we are connecting the iconic Calvin brand to a new generation of consumers all over the world. The consumer reaction has been incredible, creating another major cultural and viral moment for Calvin and driving 28 million views across Instagram and TikTok in just the first week with strong resonance among Gen Z audiences. We quickly followed this week with a new consumer moment featuring Tony Award nominated actor Sadie Sink, the star of two of the biggest entertainment phenomena of the recent years, Stranger Things and Spider-Man. Both campaigns are built around our new Feel the Fit denim platform, where we connect Calvin's Authority in denim and fit with the individual style of some of today's most relevant talent. We are supporting the campaign with a full 360 activation, bringing together the power of the brand, the relevance of the talent, and the strength in product all the way through to our doors and stores. And coming this fall, we have the strongest lineup of Calvin talent yet, leveraging the momentum Calvin has created with global stars like Dakota Johnson, Bad Bunny, and John Cook. We're also continuing to build out the expression of the Calvin brand in even more immersive and aspirational ways. We have recently upgraded the underwear shopping experience in approximately 100 of our stores and we'll do the same with a new in-store denim concept beginning this fall. For Tommy, we continue to lean into the brand's classic American cool DNA. This fall, we have our first campaign with football superstar Travis Kelsey. Travis is our newest global brand ambassador and creative collaborator, and his style, energy, enthusiasm are a great representation of the brand. The campaign is set at the Plaza Hotel in New York City, where Travis is joined by an incredible group of mega talent across fashion, music, and sport, including Gigi Hadid, Jisoo, Carmelo Anthony, They all bring Tommy's take on PrEP to life in a way that's fresh and relevant. The early consumer response has been really positive, and we are excited to see the campaign impact continue to build in the coming weeks. Also in Tommy, the campaign puts key growth categories front and center, including cable knit sweaters, shirts, and transitional outerwear, as we continue to focus on expanding the strength of our products to bigger parts of the assortment. The Travis campaign complements the recently launched Always Denim campaign featuring Romeo Beckham. It supports Tommy's accelerated focus on the denim category, and the campaign drove a roughly 30% increase in North American Europe D2C jean sales in the first month following its July launch. Again, reinforcing how our category-focused approach is translating into measurable commercial results. In the marketplace, we are continuing to step up Tommy's consumer experience, both online and in stores, with pilot openings of the new Tommy Hilfiger Shopping Shop concept in major cities around the world. Finally, next week, both Calvin and Tommy will be presenting at New York Fashion Week. It's another powerful expression of how each brand is bringing its iconic DNA to life in ways that are highly relevant to today's global consumer and culture. Turning to our forward-looking guidance, the fall product season is off to a positive start across both brands and all regions. Looking ahead, we are pleased to reaffirm the full-year guidance that we shared last quarter. From a regional perspective, we continue to expect growth in both the Americas and APAC for the full year with continued strength in e-commerce across all our three regions. And in EMEA, we expect continued momentum in e-commerce. Offset by Wholesale. Given the ongoing conflict in the Middle East and the tough spring season in the region, European wholesalers are understandably cautious, and this is reflected in our Spring 27 order book, which is down mid-single digits. To mitigate this, we are working more closely than ever with our key accounts, curating stronger assortments and providing them more in-season replenishment of our best-selling products. We're also taking the insights we get from our own D2C business in the region, where our European consumers continue to demonstrate their strong engagement and love for both of our brands, and using that to better serve our wholesale partners. And we know that as we execute these actions together, we will realize the significant long-term opportunities in the region. During the summer, I had the opportunity to visit five markets in Europe and over 30 locations. It's always great to see the consumer love for our products firsthand. And I was so impressed with the passion of our store teams and partners and how our focus on the key growth categories and best product franchises is translating more and more into the consumer experience. During these visits, I also see that we have still real growth opportunities in further expanding our category and franchise strength all the way out to every door and every store. In summary, we continue to make real progress as we execute our PVH Plus plan. Leveraging the strength of our iconic Calvin Klein and Tommy Hilfiger brands to drive long-term, increasingly profitable growth. We delivered on our guidance for the quarter with strong gross margin performance, continued strength in e-commerce, and D2C growth and AUR expansion in both Americas and APAC. In EMEA, we are navigating a challenging consumer environment by staying even closer to our consumers and partners and leaning into the strong love they have for Calvin and Tommy. Across both brands, we continue to see that where we focus on the key categories where we have the right to play and win, we drive real commercial impact with growth in multiple D2C categories. We remain committed to expanding the strength of our products to more of the assortment season by season. At the same time, we're stepping up our cost discipline. Prioritizing our resources behind the PVH Plus strategic pillars that will drive growth and long-term value creation while continuously finding more efficient ways to operate. And we are starting Q3 well. Both Calvin and Tommy are cutting through with stronger products, great campaigns, and some of the most relevant talent in culture today. And we are looking forward to peak fall season. Before I hand the call over to Melissa, I would like to thank her for her truly exceptional partnership and great work as interim CFO. I look forward to working closely with both her and Alexi as we continue to execute our plan and unlock the full potential of Calvin Klein and Tommy Hilfiger. And with that, I'll turn the call over to Melissa.