The company’s Q2 profit forecast also came in below expectations.

PVH Corp (PVH), which sells fashion merchandise under the Calvin Klein and Tommy Hilfiger brands, forecasted second-quarter profit below expectations and slashed the guidance for the full year on Wednesday.

The profit warning sent its shares down 7.4% in extended trading after they had closed 2% lower in the regular session.

Apparel and fashion businesses that rely on cheap manufacturing in other regions are scrambling to estimate and absorb the potentially higher cost of imports due to tariffs.

Although there is a likelihood that tariff rates will be revised as the Trump administration strikes trade deals, they might not be as low as previously.

PVH Corp already faces growth pressure and risks in the Chinese market due to alleged discriminatory practices there; it is expecting flat to slightly positive sales growth this year.

The company, which relies heavily on manufacturing in Asian countries, lowered its adjusted earnings per share (EPS) guidance for 2025 to $10.75 to $11 from $12.40 to $12.75 previously.

The retailer clarified that the guidance factors in a $1.05 per share negative impact from the tariffs, partially offset by a $0.10 per share forex gain. 

For the second quarter, the company expects EPS of $1.85 to $2.00, far below the $2.46 analyst estimate from FactSet.

"We're focused on what we can control," CEO Stefan Larsson said in a statement, adding that the company plans to push new product launches and brand campaigns in the second half of the year.

In Q1, PVH delivered revenue and profit that surpassed expectations, following its Q4 2024 beat—momentum that's likely fueling optimism among retail investors.

On Stocktwits, the sentiment jumped to 'extremely bullish' from 'bullish' the previous day.

PVH sentiment and message volume as of June 4 | Source: Stocktwits

Revenue rose to $1.98 billion, up from $1.95 billion a year earlier, while the EPS fell to $2.30 from $2.45. Analysts were expecting $1.93 billion in revenue and EPS of $2.25.

PVH Corp shares are down 24% year-to-date.

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