PVH Shares Plunge 22% After Maintaining EPS Outlook with $1.70 Tariff Refund
PVH•PVH posted first-quarter revenue of $2.03 billion with direct-to-consumer sales up 6%, but its shares plunged 22% as it held EPS guidance at $11.80–$12.10, which now includes $1.70 per share in tariff refunds. The company cut its full-year sales forecast to flat and kept adjusted operating margin guidance at 8.8%.
1. Strong First-Quarter Results
PVH reported first-quarter revenue of $2.03 billion, beating forecasts, with direct-to-consumer sales up 6% (3% constant currency). Growth was fueled by improved performance in both physical retail and e-commerce channels for Calvin Klein and Tommy Hilfiger, supported by spring marketing campaigns and digital investments.
2. Revised Full-Year Outlook
Management maintained adjusted EPS guidance of $11.80 to $12.10, incorporating $1.70 per share in tariff refund tailwinds. The company trimmed its full-year sales forecast to broadly flat year-over-year while affirming an 8.8% adjusted operating margin target.
3. Market Reaction and Earnings Outlook Concerns
Shares fell about 22% in premarket trading as investors focused on the inclusion of tariff refunds in guidance, signaling weaker underlying earnings power. Analysts noted that reaffirmed earnings targets despite one-time benefits point to softer core performance ahead.
