Shares in PVH Corp, the parent company of Calvin Klein and Tommy Hilfiger, tumbled in New York trading on Thursday after the fashion group slashed its full-year outlook. The stock fell by as much as 18 per cent in early trading, marking one of its steepest single-day declines in recent years, before recovering slightly to trade around 15 per cent lower.
The company now expects full-year revenue to decline by between 6 and 7 per cent, compared with its previous forecast of a 1 to 2 per cent drop. Adjusted earnings per share are forecast to come in between $10.00 and $10.60, well below the $11.50 analysts had been expecting. PVH cited softer consumer demand in both North America and Asia, alongside ongoing uncertainty surrounding US trade tariffs, which have raised costs and disrupted supply chains.
The sharp sell-off has rattled investors across the retail sector, with shares of rivals such as Ralph Lauren and VF Corporation also edging lower in sympathy. For UK investors, the news is a reminder of the vulnerability of global fashion brands to trade policy shifts, particularly those with heavy exposure to the US market. Many British pension funds hold diversified portfolios that include US-listed consumer goods stocks, meaning the knock-on effect could be felt indirectly by UK savers.
Analysts at Jefferies described the guidance cut as 'a significant disappointment,' noting that the company's core brands face increasing competition from both fast-fashion rivals and luxury players. 'PVH is caught in a difficult middle ground, where pricing power is limited and costs are rising,' they added. The company's struggles also reflect broader trends in the apparel industry, where consumers are tightening spending amid persistent inflation and higher interest rates.
For UK investors with exposure to US equities through index trackers or pension funds, the PVH decline serves as a cautionary tale about sector concentration. While the direct impact on the FTSE 100 is minimal, the wider retail weakness could weigh on sentiment for UK-listed fashion retailers such as Next and Burberry, which face similar pressures from changing consumer behaviour and global trade tensions.