PVH Corp (NYSE:PVH), the parent company of Tommy Hilfiger, stock plunges 18.20% (As on June 5, 11:19:53 AM UTC-4, Source: Google Finance) after the company lowered its forecast for both second-quarter and full-year adjusted earnings per share (EPS). The company’s Europe, the Middle East and Africa (EMEA) segment revenue saw a 5% increase, while Americas revenue grew by 7%. However, Asia Pacific (APAC) revenue declined 13%, affected by the timing of the 2025 Lunar New Year and a challenging consumer environment, especially in China. Licensing revenue decreased 2% due to the in-house transition of certain women’s product categories. The company’s Tommy Hilfiger brand saw a revenue increase of 3%, while Calvin Klein’s revenue remained flat. Direct-to-consumer revenue declined 3%, with owned and operated store revenue down 5%. In contrast, owned and operated digital commerce revenue grew 3%, driven by growth in Americas. Wholesale revenue increased by 6%, driven by growth in the Americas and EMEA.

Moreover, PVH’s gross margin decreased to 58.6% from 61.4% in the previous year, reflecting an unfavourable shift in channel mix, increased promotional activity, the transition of licensed women’s product categories to an in-house wholesale business and higher freight costs. The company reported a generally accepted accounting principles (GAAP) loss before interest and taxes of $332m, including a $4m negative impact from foreign currency translation, compared to a $205m earnings in the previous year.

PVH in the first quarter of FY25 has reported the adjusted earnings per share of $2.30, beating the analysts’ estimates for the adjusted earnings per share of $2.25. The company had reported the adjusted revenue growth of 2 percent to $1.98 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $1.93 billion.

Additionally, the company has entered into previously announced $500 million accelerated share repurchase (“ASR”) agreements in April 2025, with initial delivery of approximately 4.6 million shares under these agreements during the first quarter of 2025.

Looking ahead, PVH reaffirmed it outlook for sales to remain flat or increase slightly for the full year. However, the firm cut is profit forecast with adjusted earning per share now expected to come in at $10.75 to $11, down from $12.40 to $12.75 in its previous forecast earlier in the year, citing ​the negative impact related to the tariffs currently in place for goods coming into the U.S.

For the second quarter of 2025, revenue is projected to increase in the low single digits, with EPS in the range $1.85 to $2 on a non-GAAP basis. This is a drop from the previously estimated $2.08, according to data compiled by LSEG.