PVH Corp. (NYSE:PVH) came under heavy selling pressure in premarket trading on Thursday, with shares dropping around 22% after investors focused on a more cautious full-year outlook despite a solid first-quarter performance that met or exceeded market expectations.
The owner of the Calvin Klein and Tommy Hilfiger brands reported first-quarter revenue of $2.03 billion, slightly ahead of analyst forecasts of $2.0 billion. Results were supported by continued strength in the company’s direct-to-consumer operations, where sales increased 6%, or 3% on a constant-currency basis.
Growth in the direct-to-consumer segment was driven by improved performance across both physical retail locations and e-commerce channels for its flagship brands.
“As we look forward, we are balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and TOMMY, and on the other, the prolonged effects of the Middle East conflict, which is putting pressure on the consumer in EMEA,” said Stefan Larsson, Chief Executive Officer at PVH.
The company also highlighted positive results from its spring marketing campaigns, which helped attract new customers across multiple regions and product categories. Ongoing investments in digital commerce capabilities, store modernisation projects and shop-in-shop concepts further supported customer engagement during the quarter.
Outlook Revision Raises Investor Concerns
Despite the encouraging start to the year, management updated its full-year outlook to reflect the continuing impact of geopolitical tensions in the Middle East, particularly on consumer demand across Europe, the Middle East and Africa (EMEA).
PVH maintained its adjusted earnings-per-share forecast of $11.80 to $12.10 for the fiscal year. However, investors reacted negatively after the company disclosed that the guidance now includes approximately $1.70 per share in benefits from tariff refunds.
As a result, analysts concluded that the underlying earnings outlook has weakened compared with previous expectations.
The company also lowered its sales forecast, now expecting revenue to be broadly flat year-on-year. Meanwhile, adjusted operating margin guidance was maintained at 8.8%.
Analysts at Goldman Sachs described the update as disappointing.
“this was a disappointing update from PVH.”
“The company merely reaffirmed its full year adjusted EBIT and adj. EPS guidance despite the inclusion of ~$1.70 per share in tariff refund tailwinds, suggesting underlying earnings power is significantly weaker than previously expected when adjusting for these 1x benefits,” they said.
Analysts Warn of Additional Risks Ahead
Following the earnings release, Evercore ISI downgraded the stock to In Line, citing concerns about slowing demand in Europe and the potential impact on future earnings growth.
The brokerage argued that the “abrupt EMEA slowdown puts 2026 at risk.”
“While 1Q itself had some bright spots, this was a low quality update that we think leaves risk of further negative revision in 2H,” analysts led by Michael Binetti wrote.
Investor concerns were amplified by uncertainty surrounding consumer spending trends in key international markets, particularly as ongoing geopolitical instability continues to weigh on sentiment.
Brand Momentum Remains Positive
Despite concerns about the broader outlook, PVH reported encouraging trends across several of its core product categories.
Management said Calvin Klein denim and underwear, as well as Tommy Hilfiger sweaters and outerwear, delivered growth across both digital and physical retail channels during the quarter.
Operating margin for the period also reached the upper end of management’s guidance range, supported by product innovation initiatives and disciplined cost management.
While investors focused on the weaker underlying earnings outlook, the company believes that strengthening brand momentum, customer acquisition efforts and investments in retail and digital infrastructure continue to support its longer-term growth strategy.
More About PVH Corp.
PVH Corp. is one of the world’s largest apparel companies and the owner of globally recognised brands including Calvin Klein and Tommy Hilfiger. The company operates across wholesale, retail and e-commerce channels, serving consumers in North America, Europe, Asia and other international markets.
PVH continues to focus on brand elevation, digital transformation and direct-to-consumer growth as key pillars of its long-term strategy, while investing in marketing, product innovation and customer experience initiatives designed to strengthen brand relevance and profitability.