PVH stock plunges after revenue outlook cut

PVH Corp. shares fell about 22% after the apparel company reduced its fiscal 2026 revenue outlook to roughly flat from prior expectations of slight growth. The decline was the stock’s largest one‑day drop in more than two years. The company linked the weaker sales outlook to the ongoing conflict in the Middle East, saying it has weakened consumer demand across Europe, the Middle East and Africa, a region that accounted for roughly 47% of PVH’s first‑quarter sales.

PVH reported first‑quarter adjusted earnings per share of $2.01 and revenue of $2.0 billion, a 2% increase year over year. The EPS exceeded the consensus of $1.82. Despite the quarterly beat, PVH forecast second‑quarter revenue would decline between 4% and 5%, versus analysts’ expectations for about a 1% decline.

The company maintained its full‑year adjusted earnings guidance at $11.80 to $12.10 per share; that outlook includes an estimated benefit of roughly $1.50 per share from recent tariff refunds. PVH reported the prolonged conflict has offset about $100 million of gains tied to those tariff refunds by reducing consumer spending in the EMEA region.

Chief Executive Stefan Larsson described the situation as “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.”

Analysts reacted with mixed but cautious notes. Evercore ISI lowered its rating to In Line from Outperform and cut its price target to $79 from $95, characterizing the update as “low quality” and warning it could prompt further negative estimate revisions later in the year. Evercore also noted PVH is the only company in its coverage to include a one‑time tariff refund in fiscal‑2026 guidance and indicated that without that benefit maintaining current margin and earnings assumptions would be difficult. Needham trimmed its price target to $102 from $107 while retaining a Buy rating, saying the quarter’s outperformance reflected interest and tax benefits and lowering its fiscal‑2027 earnings estimate to $12.80 from $13.40. UBS kept a Buy rating and a $130 price target, citing confidence in PVH’s brand portfolio and financial position.

Market focus is on PVH’s revised sales guidance and the potential for additional cuts to earnings estimates if consumer demand in EMEA remains weak.