PVH (NYSE:PVH) Shares Gap Down - Here's What Happened

Key Points

• PVH shares gapped down sharply after the company cut its full-year 2026 revenue outlook to roughly flat, down from slight growth, which spooked investors. The stock opened at $72 versus a prior close of $98 and was last down about 21.8%.
• Despite the selloff, PVH's latest quarter was better than expected: Q1 EPS came in at $2.01 versus estimates of $1.80, and revenue reached $2.03 billion, also slightly ahead of forecasts. The company also raised Q2 EPS guidance to $3.00-$3.10.
• Management said the weaker outlook was tied to Middle East conflict-related disruption and softness in EMEA, raising concerns about continued regional demand pressure. Analysts currently have a consensus Hold rating and an average price target of $88.53.

PVH Corp. (NYSE:PVH - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $98.00, but opened at $72.00. PVH shares last traded at $74.2050, with a volume of 1,182,477 shares trading hands.

Key Stories Impacting PVH

Here are the key news stories impacting PVH this week:

• Positive Sentiment: PVH reported Q1 EPS of $2.01, ahead of estimates, and revenue of $2.03 billion, also slightly above Wall Street expectations, showing the core business held up better than feared. PVH Q1 earnings report
• Positive Sentiment: The company also raised near-term earnings expectations, guiding Q2 EPS to $3.00-$3.10 versus a lower consensus estimate, suggesting profitability may remain solid in the short term.
• Neutral Sentiment: PVH’s Q1 revenue rose 2.1% year over year, but profitability remained under pressure, with margin and operating income metrics weaker than last year.
• Negative Sentiment: Management lowered full-year 2026 revenue guidance to roughly flat from a prior outlook for slight growth, which is the main reason investors are selling the stock. WSJ outlook article
• Negative Sentiment: The company tied the weaker sales outlook to disruption from the Middle East conflict and weakness in EMEA, raising concern that geopolitical and regional demand headwinds could continue to hurt results.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PVH. Wall Street Zen raised PVH from a "hold" rating to a "buy" rating in a report on Sunday, May 10th. Evercore set a $79.00 target price on PVH in a report on Thursday. UBS Group increased their target price on PVH from $120.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Telsey Advisory Group reissued a "market perform" rating and issued a $74.00 target price on shares of PVH in a report on Wednesday, April 1st. Finally, Zacks Research upgraded shares of PVH from a "hold" rating to a "strong-buy" rating in a report on Monday, May 25th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, PVH presently has an average rating of "Hold" and a consensus price target of $88.53.

PVH Stock Down 21.8%

The firm has a market cap of $3.51 billion, a price-to-earnings ratio of 202.59, a P/E/G ratio of 1.07 and a beta of 1.71. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.52 and a quick ratio of 0.85. The firm's 50 day moving average price is $86.08 and its two-hundred day moving average price is $75.12.

PVH (NYSE:PVH - Get Free Report) last released its earnings results on Wednesday, June 3rd. The textile maker reported $2.01 EPS for the quarter, topping the consensus estimate of $1.80 by $0.21. PVH had a net margin of 0.28% and a return on equity of 11.55%. The company had revenue of $2.03 billion during the quarter, compared to analysts' expectations of $2 billion. During the same quarter last year, the business earned $2.30 EPS. The business's revenue was up 2.1% on a year-over-year basis. PVH has set its Q2 2026 guidance at 3.000-3.10 EPS and its FY 2026 guidance at 11.800-12.10 EPS. As a group, sell-side analysts forecast that PVH Corp. will post 12.01 earnings per share for the current fiscal year.

PVH Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 24th. Investors of record on Wednesday, June 3rd will be given a $0.0375 dividend. The ex-dividend date is Wednesday, June 3rd. This represents a $0.15 dividend on an annualized basis and a yield of 0.2%. PVH's dividend payout ratio (DPR) is presently 39.47%.

Institutional Investors Weigh In On PVH

A number of hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its position in PVH by 1.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,055,544 shares of the textile maker's stock valued at $204,786,000 after purchasing an additional 54,635 shares during the period. Allspring Global Investments Holdings LLC lifted its position in PVH by 2.0% in the first quarter. Allspring Global Investments Holdings LLC now owns 2,262,489 shares of the textile maker's stock valued at $173,216,000 after purchasing an additional 44,346 shares during the period. LSV Asset Management lifted its position in PVH by 8.4% in the fourth quarter. LSV Asset Management now owns 2,127,646 shares of the textile maker's stock valued at $142,595,000 after purchasing an additional 164,343 shares during the period. American Century Companies Inc. lifted its position in PVH by 19.9% in the third quarter. American Century Companies Inc. now owns 1,270,040 shares of the textile maker's stock valued at $106,391,000 after purchasing an additional 210,885 shares during the period. Finally, Barclays PLC lifted its position in PVH by 68.4% in the third quarter. Barclays PLC now owns 1,197,009 shares of the textile maker's stock valued at $100,273,000 after purchasing an additional 486,210 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

PVH Company Profile

PVH Corp is a leading global apparel company known for its portfolio of iconic brands in the dress shirt, sportswear and lifestyle categories. The company designs, markets and distributes clothing, accessories and fragrances under both owned and licensed brands. PVH's core brand holdings include Calvin Klein and Tommy Hilfiger, complemented by a range of heritage labels such as Van Heusen, IZOD, ARROW, Warner's and Olga.

PVH's operations span the entire value chain from product design and development to manufacturing, marketing and distribution.

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