PVH (Tommy Hilfiger and Calvin Klein) shares fall 20%

PVH Corp. shares plunged 20 percent in recent trading after the company provided a full-year sales forecast that fell short of expectations.

The apparel company, owner of the Tommy Hilfiger and Calvin Klein brands, has indicated that it expects revenues this year to decrease by between 6 and 7 percent, compared to an increase of 2 percent last year. While part of the anticipated decline is due to the sale of Heritage Brands, its women’s intimate apparel business, the company also noted a challenging macroeconomic environment, particularly in Europe.

PVH has been working to execute a transformation plan focused on strengthening Calvin Klein and Tommy Hilfiger, which have lost momentum among shoppers in recent years. In the fourth quarter, which includes the crucial holiday season, profitability exceeded the average estimate of analysts, thanks in part to better inventory management.

That said, revenue growth has not been sustained in some regions. Calvin Klein sales in North America fell 8 percent in the fourth quarter, largely due to a decline in the wholesale business, while international revenues for Tommy Hilfiger dropped 1 percent.