V.F. Corporation (NYSE: VFC) plunged 7% in intraday trading Tuesday, potentially in possible sympathy with PVH Corp. (NYSE: PVH), which fell following the issuance of weak Q1 guidance.
PVH Corp. (NYSE: PVH), the parent company of iconic fashion brands Calvin Klein and Tommy Hilfiger, reported a lukewarm growth in its fourth-quarter revenue and projected a weaker-than-expected sales outlook for the current quarter and the fiscal year 2024. As a result, PVH shares plunged by more than 20% on Tuesday.
PVH reported adjusted earnings of $3.72 per share, surpassing analysts’ expectations of $3.53. However, the company’s revenue remained flat at $2.49 billion, missing the estimated $2.42 billion.
The international business sales of PVH surged by 4%, driven by robust growth in the Asia Pacific region, partially offsetting challenges in European markets. North American sales declined by 2% due to cautious wholesale customers affecting its Tommy Hilfiger and Calvin Klein businesses.
PVH forecasts a decline in current-quarter revenue by 11% to $1.92 billion, missing the analysts’ estimate of $2.08 billion. The company also predicts a contraction in annual sales between 6% and 7% to approximately $8.62 billion, falling short of the Street’s expectation of $9.15 billion.
In the year ahead, the company plans to focus on enhancing the appeal of its Tommy Hilfiger and Calvin Klein brands and revamping its European operations by improving sales quality and increasing market dominance.
Stefan Larsson, the CEO of PVH, said in the company’s earnings statement that this strategy will directly translate into growth in Asia and North America. He added that in Europe, where the macroeconomic conditions have become more challenging, the focus will be on improving the quality of sales to strengthen the company’s market-leading position.
V.F. Corporation (NYSE: VFC) Stock Movement
VFC stock plummeted 6.67% to close at $14.28 on Tuesday. The traders had exchanged hands with 81,216,023 (81.21 million) shares compared to the average daily trading volume of 8.41 million.
