PVH Corp’s Stock Faces Turbulence Amid Mixed Q1 Earnings

In a surprising turn of events, PVH Corp, the parent company of iconic brands Calvin Klein and Tommy Hilfiger, saw its stock plummet by over 18% on June 5, 2025, despite reporting earnings that surpassed expectations. The company’s shares, which closed at $80.81 on June 3, 2025, fell sharply to around $66.04, reflecting investor concerns over the company’s future outlook.

Earnings Beat, Yet Guidance Cut

PVH Corp reported a first-quarter earnings per share (EPS) of $2.30, beating the forecast of $2.23. Revenue also exceeded expectations, reaching $1.98 billion against the anticipated $1.93 billion. However, the positive earnings report was overshadowed by the company’s decision to adjust its full-year EPS target to $10.75-$11 and project an 8.5% operating margin. This adjustment came amid pressures from tariffs and increased promotional activities, which have been weighing on the company’s financial performance.

Analysts React to Guidance Cut

The market’s reaction was swift, with several analysts adjusting their outlooks on PVH Corp. Needham lowered its stock price target following the guidance cut, while BMO Capital also reduced its target, citing the revised EPS guidance. Despite the earnings beat, the lowered guidance has raised concerns about the company’s ability to navigate the challenging economic environment, particularly with the impact of tariffs on its profitability.

Direct-to-Consumer Challenges

Adding to the concerns, PVH Corp’s direct-to-consumer revenue declined by 3% in the first quarter, dampening investor sentiment. This decline highlights the challenges the company faces in its digital transformation efforts, even as it introduces new leadership at Calvin Klein and implements cost-saving measures.

Market Sentiment and Future Outlook

Despite the earnings beat, the market sentiment towards PVH Corp remains cautious. The company’s stock tumbled as investors reacted to the guidance cut and the potential impact of tariffs on its future profitability. Analysts at Benzinga noted the attractive valuation of PVH Corp despite the “noisy” Q1, suggesting that the stock might be undervalued given its long-term potential.

As PVH Corp navigates these challenges, the focus will be on how effectively it can manage the pressures from tariffs and promotional activities while continuing to innovate and grow its direct-to-consumer channels. The company’s ability to adapt to these challenges will be crucial in determining its future performance and stock valuation.

In summary, while PVH Corp’s Q1 earnings exceeded expectations, the guidance cut and market pressures have led to a significant drop in its stock price. Investors will be closely watching the company’s next moves as it seeks to address these challenges and capitalize on its brand strength in the competitive textiles, apparel, and luxury goods sector.