Shares in Calvin Klein and Tommy Hilfiger owner PVH Corp. (NYSE:PVH) slumped over 20% on Tuesday after the firm disappointed with future sales guidance.
Following a 2% increase to US$9.22 billion last year, PVH warned sales would likely fall between 6% and 7% in 2024.
This would be driven in part by the sale of its Heritage Brands women’s intimates segment, but also as a result of a tougher macroeconomic backdrop, the group said in a statement.
Per share earnings were forecast to be largely flat, at between US$10.75 and US$11, compared to US$10.76 last year.
Chief financial officer Zac Coughlin commented that PVH was set on accelerating its plan to double down on growth of the core Calvin Klein and Tommy Hilfiger brands in the year ahead.
"In a tougher macroeconomic backdrop in 2024, we are leaning into the next level of [...] execution across the company to create value by increasing quality of sales, driving gross margin improvements and cost efficiencies," he said.
Shares fell 24.4% to US$105.55.