What Happened:
Shares of fashion conglomerate PVH (NYSE:PVH) fell 23.3% in the morning session after the company reported fourth-quarter results and provided full-year earnings forecast, which fell well below Wall Street's expectations. PVH blamed the macro, especially in Europe. On the other hand, revenue and EPS exceeded expectations during the quarter. The guidance is greatly pressuring the stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy PVH? Access our full analysis report here, it's free.
What is the market telling us:
PVH's shares are quite volatile and over the last year have had 7 moves greater than 5%. But moves this big are very rare even for PVH and that is indicating to us that this news had a significant impact on the market's perception of the business.
PVH is down 10.8% since the beginning of the year, and at $108.45 per share it is trading 22.9% below its 52-week high of $140.61 from March 2024. Investors who bought $1,000 worth of PVH's shares 5 years ago would now be looking at an investment worth $874.87.
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