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PVH shares plunge after trading announcement

By Don-Alvin Adegeest


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Calvin Klein advertisement Credits: Omar Ayuso, Pride 2021, by Calvin Klein.

Tommy Hilfiger and Calvin Klein parent PVH Corp. experienced a significant 20 percent drop in its shares during late trading following the release of its full-year sales guidance, which failed to meet market expectations.

The group anticipates a decline in revenue for the year by 6 to 7 percent, in contrast to a 2 percent increase recorded last year, the company said in an earnings statement. While the sale of Heritage Brands and its women’s intimates segment contributes to this projected decrease, PVH also cited challenges stemming from the broader macroeconomic landscape, particularly in Europe.

With recent high profile advertising campaigns for Calvin Klein, PVH has been actively pursuing a transformation strategy aimed at revitalising its flagship brands, which have experienced waning popularity among consumers in recent years, Bloomberg said.

Despite posting profitability in the fourth quarter, including during the critical holiday season, which surpassed analyst expectations, the company has encountered difficulties sustaining revenue growth in certain markets, according to Bloomberg.

Last November PHV downgraded its sales guidance for the year, also causing its share price to tumble, according to Proactive Investor. Notably, with wholesale down 10 percent, increasing direct to consumer revenue will be key for 2024.

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