• Evercore downgraded PVH to ‘In Line’ from ‘Outperform,
• PVH CEO Stefan Larsson said the prolonged effects of the Middle East conflict pressured the consumer in EMEA.
• For the full year, the company now expects total revenue to be about flat on a reported basis.

Shares of PVH Corp (PVH) tanked on Thursday after its first-quarter report disappointed investors, pushing Evercore ISI to lower its rating on the apparel company.

At the time of writing, PVH stock was down more than 20% premarket and on track for its biggest single-day percentage decline in over two years, if session losses hold.

Low Quality Update

Evercore analyst Michael Binetti downgraded the company, which manages brands like Tommy Hilfiger and Calvin Klein, to ‘In Line’ from ‘Outperform,’ TheFly reported. Binetti thinks PVH issued a "low quality update" in its first-quarter (Q1) report, exposing it to the risk of further negative estimate revisions in the second half of this year.

PVH has a new price target of $79, cut from $95, implying a downside potential of more than 19% as of the stock’s last closing price on Wednesday.

Middle East Conflict Hurts PVH

PVH CEO Stefan Larsson said the prolonged effects of the Middle East conflict are putting pressure on the consumer in Europe, the Middle East, and Africa (EMEA), offsetting the $100 million in gains from tariff refunds.

As a result, the company expects business in the region to be negatively impacted and cut its full-year revenue outlook.

For the full year, PVH now expects total revenue to be about flat on a reported basis, down from a previously expected slight increase, and maintained operating margin at 8.8% and an adjusted earnings per share (EPS) outlook of $11.80 to $12.10.

Evercore highlighted that PVH is the only company in its coverage to include a one-time lift from tariff refunds in its fiscal 2026 outlook, and noted that if that benefit is excluded, it wouldn't be able to maintain its margins and earnings outlooks.

In Q1, PVH reported a 2% increase in total revenue to $2.03 billion, ahead of the $2 billion estimate polled by Fiscal AI. It reported adjusted EPS of $2.01, ahead of the $1.82 estimate.

What Do Retail Traders Think About PVH?

On Stocktwits, retail sentiment about PVH turned ‘extremely bullish’ from ‘bullish’ over the last 24 hours. 

Wall Street is also largely positive, with seven out of eleven analysts covering the stock rating it a ‘Buy’ or ‘Higher’ and six rating it a ‘Hold,’ per Koyfin data.

One user on the platform thinks the current pullback is a buying opportunity.

PVH stock has surged more than 46% so far this year, outperforming the S&P 500.

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