- PVH Corp., parent company of Calvin Klein and Tommy Hilfiger, has reduced its full-year revenue projection due to increasing challenges and weaker retail demand in Europe.
- The company attributes the revised outlook primarily to the ongoing conflict in the Middle East, which has significantly impacted its EMEA (Europe, Middle East, and Africa) business .
- CEO Stefan Larsson explained that the conflict is causing lower wholesale demand in the Middle East, reduced tourism and macro factors in Turkey, and broader negative consumer purchasing behavior across the EMEA region.
- Despite a 10 percent revenue gain in the Asia-Pacific region, the EMEA region, which accounts for nearly 47 percent of PVH's total business, is now expected to see a mid-single-digit decrease in full-year revenue.
- This slowdown occurs as PVH is undertaking a multiyear turnaround effort, the PVH+ Plan, aiming for a $12.5 billion revenue goal by 2025, a target it is currently falling short of.
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