Shares of PVH Corp. (PVH.US), the American fashion and apparel holding company that owns Calvin Klein and Tommy Hilfiger, are down over 18% today, despite the company beating earnings and revenue expectations for the first quarter of the year. The drop is driven by a downward revision of the full-year earnings forecast. PVH cited macroeconomic uncertainty and weakening consumer trends as the main reasons for the sharp cut in annual earnings expectations.
- Earnings per share came in at $2.30 versus the $2.23 expected, and revenue rose 2% year-over-year to $1.98 billion, in line with market expectations. However, the revenue forecast still suggests flat or only slightly positive year-over-year growth for fiscal 2026 (calendar year 2025).
- What truly disappointed investors was the full-year earnings forecast for fiscal 2026, which now stands at $10.75 to $11.00 — significantly below the company’s previous guidance of $12.40 to $12.75 and nearly 8% below the market consensus of $12.51.
Revenue growth was driven primarily by the Americas and Europe, while sales in China declined by 13%. Tommy Hilfiger sales increased 3% year-over-year, while Calvin Klein sales remained flat. The company stated it has several strategic initiatives planned for the second half of the year and reported a buyback of 4.6 million shares in Q1, although it does not plan any further buybacks this year.
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Shares failed to rise above the EMA200 (red line) at $88 level, where we can see also the potentially bearish double top technical pattern.
Source: xStation5
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