Movement Alert|PVH Corp Falls 20.66% in Regular Trading, Full-Year Guidance Cut Triggers Sell-Off Despite Q1 Beat

Market Focus06-05

On June 4, PVH Corp declined 20.66% in regular trading, trading at $77.645/share, with trading volume of $216 million. The sharp sell-off was triggered by the company's decision to lower its full-year guidance despite reporting first-quarter results that exceeded Wall Street expectations.

PVH posted Q1 revenue of $2.03 billion versus the consensus estimate of $2.0 billion, driven by strong direct-to-consumer performance. Adjusted earnings per share came in at $2.01, beating estimates of $1.87 by approximately 7.5%, though representing a 12.6% year-over-year decline from $2.30. However, the company simultaneously cut its full-year outlook, incorporating the projected long-term negative impact of the Middle East conflict. PVH now expects fiscal year revenue to remain essentially flat versus the prior year, maintaining its non-GAAP operating margin forecast at approximately 8.8%.

Adding to the pressure, Evercore ISI downgraded PVH from Outperform to In Line, slashing its price target from $95 to $79. The FactSet analyst consensus maintains an average target of $94.18.

PVH Corp is a global apparel company operating in over 40 countries, with flagship brands TOMMY HILFIGER and Calvin Klein contributing the vast majority of revenue.

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