What Happened?
Shares of fashion conglomerate PVH (NYSE: PVH) fell 11.8% in the afternoon session after the company's weak earnings guidance for the upcoming quarter overshadowed its third-quarter revenue and profit beat. The Calvin Klein parent company's third-quarter revenue of $2.29 billion was in line with analyst expectations, while its adjusted earnings per share of $2.83 beat estimates. However, investors focused on the negatives. The adjusted profit was still down from $3.03 in the same quarter last year. More significantly, the company's earnings per share guidance for the next quarter and its constant currency revenue both fell short of Wall Street’s estimates. The results were described as a "softer quarter," contributing to the negative investor sentiment that sent the stock sharply lower.
The shares closed the day at $77.17, down 11.9% from previous close.
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What Is The Market Telling Us
PVH’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for PVH and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.9% on the news that investor optimism grew ahead of its upcoming quarterly earnings report. The apparel company was scheduled to announce its financial results later in the day. Ahead of the release, analysts had estimated that PVH would report an earnings per share (EPS) of $2.55. The stock's positive movement suggested that investors were hopeful about the company's performance and were positioning themselves for a potentially favorable announcement.
PVH is down 26.1% since the beginning of the year, and at $77.51 per share, it is trading 31.3% below its 52-week high of $112.86 from December 2024. Investors who bought $1,000 worth of PVH’s shares 5 years ago would now be looking at an investment worth $846.77.
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