PVH Corp (NYSE: PVH), the parent company of Calvin Klein and Tommy Hilfiger, saw its shares plummet 18.7% to $79.00 in after-hours trading on Wednesday. The steep decline came after the company revised its full-year revenue outlook downward, citing persistent headwinds in Europe, the Middle East, and Africa (EMEA). The stock had closed the regular session at $98.00, up 0.85% on the day.
PVH now expects full-year revenue to be roughly flat compared to the prior year, a significant downgrade from its previous guidance of slight growth. The company attributed the revision to weaker-than-expected sales momentum in the EMEA region, driven by the ongoing Middle East conflict and broader macroeconomic challenges. This cautious stance overshadowed a first-quarter earnings beat, as adjusted earnings per share came in at $2.01, exceeding the FactSet consensus estimate of $1.82. First-quarter revenue of $2.025 billion also topped expectations of $2.00 billion.
Despite the revenue warning, PVH maintained its full-year adjusted earnings per share outlook of $11.80 to $12.10. The company uses adjusted, or non-GAAP, figures to exclude items management considers not indicative of core operations. For the second quarter, PVH provided a soft forecast, projecting revenue to decline by 3% to 4%, or 4% to 5% on a constant-currency basis. Adjusted earnings for the second quarter are expected to be between $3.00 and $3.10 per share.
CEO Stefan Larsson described the current environment as one of “two opposing forces”: strong brand momentum for Calvin Klein and Tommy Hilfiger, but significant pressure on the EMEA consumer due to the Middle East conflict. Interim CFO Melissa Stone characterized the quarter as an example of execution in a “highly dynamic operating environment.” The company is relying on cost controls and tariff refunds to protect margins, with an operating margin target that includes approximately 100 basis points of benefit from tariff refunds.
Some segments of the business showed resilience. Direct-to-consumer revenue, encompassing PVH’s own stores and e-commerce platforms, grew 6% year over year. Asia-Pacific revenue rose 10% on a reported basis, partly benefiting from the timing of Lunar New Year. However, the overall outlook remains cautious, with management noting that softer EMEA demand, increased promotional activity, or weaker wholesale orders could require further defensive measures.
PVH also reiterated its commitment to share buybacks, forecasting at least $300 million in repurchases for the year, though no stock was bought back in the first quarter. The company expects to recognize approximately $100 million in IEEPA tariff refunds in the second quarter. The after-hours decline in PVH shares contrasted with the performance of its peers: Ralph Lauren fell 1.2% and Coach owner Tapestry gained 0.6% at the same market-data timestamp.
PVH filed its financial results with the U.S. Securities and Exchange Commission on Wednesday. Management is scheduled to discuss the numbers on a conference call Thursday morning. Investors will be watching closely to determine whether the EMEA warning is a temporary setback or a sign of deeper challenges for a stock that had rallied 46% year-to-date ahead of the earnings release.