PVH Corp. has cut its full-year expectations following a drop in its stock price, blaming the ongoing conflict in the Middle East for a sharp pullback in wholesale demand and weaker consumer spending across Europe.

The parent company of Calvin Klein and Tommy Hilfiger reported that these pressures offset a 10 percent revenue gain in the Asia-Pacific region during the first quarter.

During the company’s first-quarter earnings call, PVH Chief Executive Officer Stefan Larsson explained that the Middle East conflict was pressuring the EMEA (Europe, Middle East and Africa) business in three distinct ways, Retail Dive reported.

“[T]he prolonged effects of the Middle East conflict, now extending beyond the third month … is putting increasing pressure on our EMEA business in three ways,” Larsson said. “First, our direct Middle East business is seeing notably lower wholesale demand. Second, we have seen a knock-on effect in Turkey as reduced tourism and macro factors weigh on demand there. And third, we are seeing a broader macro effect on consumer purchasing behavior in the EMEA region, including the effects of higher fuel costs, which is leading to lower consumer sentiment and fewer drives to stores.”

EMEA revenue increased 2 percent in the first quarter. The region represents nearly 47 percent of PVH’s total business, and Larsson said the company now expects full-year revenue for the region “will decrease mid-single digits in constant currency versus last year.”

Larsson added that the company’s outlook for the Americas and APAC remains unchanged, stating that the only shifting variable from the previous year is the conflict.

The slowdown comes during a multiyear turnaround effort for PVH. The company launched its PVH+ Plan in 2022, aiming to boost digital and direct-to-consumer sales to hit a $12.5 billion revenue goal by 2025. However, the company is falling short of that timeline. In March, PVH reported full fiscal 2025 revenue of $8.95 billion, up 3 percent from the prior year.

Performance across other global markets varied during the first quarter of 2026.

In the Asia-Pacific region, revenue grew 10 percent year over year, driven in part by the timing of the Lunar New Year, which fell entirely within the quarter due to calendar shifts. In the Americas, revenue fell 1 percent, with PVH attributing the decline to a drop in its wholesale business that offset gains in direct-to-consumer sales.

PVH also updated its financial guidance regarding international trade policy. The new forecast factors in a negative impact from a 15 percent blended tariff rate on goods imported into the U.S., which will be countered by an expected $100 million benefit to EBIT from tariff refunds.

The refunds were not included in the company’s previous financial guidance.