The owner of Calvin Klein and Tommy Hilfiger falls on the stock market


April 2, 2024
Today at
17:38

Due to a more difficult macroeconomic context, particularly in Europe, PVH expects a larger than expected decline in revenue in 2024.

This is called being beaten up by investors. The American group PVH

owner of the Calvin Klein and Tommy Hilfiger brands, saw its stock plummet by more than 20% at the opening of Wall Street on Tuesday, the day after the publication of outlook below expectations for 2024.

The ready-to-wear company – which recorded a 2% increase in its turnover in 2023 – is banking on a 6% to 7% drop in revenue for the current financial year, due in particular to the sale of its women’s brand Heritage Brands and D'”a more difficult macroeconomic context”, particularly in Europe.

Her operating margin should remain stable at 10.1%, while the earnings per share (EPS) should be between $10.75 and $11.


“PVH has significantly backtracked on many of the data it provided just 90 days ago for 2024, largely due to worsening trends in Europe”

Michael Binetti

Analyst at Evercore ISI

Disappointment

According to data compiled by Bloomberg, analysts on average expected a 2.3% decline in annual revenue and EPS of $11.89 per share.

PVH’s prospects are “clearly disappointing”, summarizes Michael Binetti, analyst at Evercore ISI. And to emphasize: “PVH has significantly backtracked on several of the data it had provided only 90 days ago for 2024, largely due to worsening trends in Europe“.

Many analysts, however, remain positive on PVH stock: Two-thirds of them recommend buying the stock, with a median price target of $142.64.

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