Why PVH Stock Plunged Today
Key Points
Conflict in the Middle East is driving PVH's customers to cut spending.
Management alerted investors to a potential sales shortfall in the coming quarters.
- 10 stocks we like better than PVH ›
Shares of PVH Corp (NYSE: PVH) sank on Thursday after the fashion conglomerate warned of a downturn in one of its major international segments.
Image source: Getty Images.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Mixed Q1 results
The parent company of Calvin Klein and Tommy Hilfiger reported a 2% year-over-year rise in revenue to $2 billion in its fiscal first quarter, which ended on May 3. However, excluding the effects of foreign currency fluctuations, PVH's sales declined by 2%.
Notably, PVH grew its direct-to-consumer revenue by 6% (and 3% on a constant-currency basis). Sales at its owned-and-operated stores and websites climbed 5% and 11%, respectively.
Conversely, the company's wholesale revenue was flat and declined 6% on a constant-currency basis.
All told, PVH's adjusted operating income fell to $131 million from $160 million in the year-ago quarter, as its operating margin decreased to 6.5% from 8.1%. Higher marketing and other brand-building costs contributed to the declines.
PVH's adjusted earnings per share, in turn, dropped 12.6% to $2.01.
A cautious outlook
Investors appeared more concerned about management's guidance. PVH warned that ongoing tensions in the Middle East would weigh on its sales. The company expects revenue to fall by 3% to 4% in the second quarter, driven by a downturn in its Europe, the Middle East, and Africa (EMEA) division.
"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," CEO Stefan Larsson said.
Should you buy stock in PVH right now?
Before you buy stock in PVH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PVH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 4, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
