PVH shares plunge over 20% after cutting revenue outlook

Shares of PVH Corp. fell sharply after the apparel company lowered its full-year revenue outlook, citing the prolonged effects of the Middle East conflict on consumer demand in Europe, the Middle East, and Africa. The stock decline of over 20 percent marked its steepest single-day drop in more than two years.

The owner of the Tommy Hilfiger and Calvin Klein brands now expects revenue for fiscal 2026 to be approximately flat, a reduction from its prior forecast of slight growth. For the second quarter, the company projected revenue would decline between 4 and 5 percent. This revised guidance overshadowed a stronger-than-expected first-quarter performance, where PVH reported adjusted earnings per share of $2.01, exceeding analyst expectations. Revenue for the quarter rose 2 percent to $2.03 billion.

Chief Executive Officer Stefan Larsson said the company is balancing two opposing forces: increasing brand momentum and the prolonged effects of the Middle East conflict, which is pressuring consumer spending in the EMEA region. Revenue in that region fell 5 percent in constant currency during the first quarter. The EMEA segment is particularly significant for PVH, accounting for about...