Parent company of Tommy Hilfiger warns ongoing Iran war could bring its sales down

Bank of America Securities downgraded PVH Corp (NYSE:PVH) to Underperform from Neutral and cut its price target to $70 from $90, citing weaker Europe demand and sales/margin headwinds in the Middle East and Turkey. Citi kept a Neutral rating but lowered its target to $78 from $80, citing a weak Q2 start. Analysts expect 2026 EBIT margins to stay flat.

Bank of America downgraded PVH Corp. to “Underperform” from “Neutral” and cut its price target to $70 from $90, citing PVH’s heavy exposure to EMEA (about 50% of sales) and a potentially slower regional recovery. The bank reduced 2026–2028 earnings estimates by 1%–3% and lowered its 2027 EV/EBITDA multiple to 4x. It expects EBIT margin flat in 2026 despite ~$100M tariff refunds.

PVH, the Calvin Klein and Tommy Hilfiger parent, cut its full-year 2026 revenue outlook, now expecting reported revenue to be approximately flat versus its prior slight increase; on a constant-currency basis, revenue is expected to decline slightly. Management cited prolonged Middle East conflict effects hurting EMEA wholesale demand and traffic. PVH reported Q1 revenue of $2.025B and non-GAAP EPS of $2.01.

PVH Corp. reported Q1 2026 revenue of about $2.03 billion and adjusted EPS of $2.01, which it said beat expectations. However, it cut full-year revenue guidance to flat growth, citing war-related impacts on its EMEA business. PVH shares fell about 26.5% on June 4, and Evercore ISI downgraded PVH and cut its price target to $79.

Wall Street rose Thursday as easing oil prices and lower bond yields reduced pressure on U.S. stocks, with banks and smaller-company shares leading. The S&P 500 gained 0.4% to 7,584.31 and the Dow jumped 1.7% to a record. Brent fell 2.8% to $95.03. AI-linked stocks lagged: Broadcom fell 12.6% despite beating expectations; Micron dropped 7.7%.

Wall Street rose Thursday as easing oil prices and bond yields reduced pressure on U.S. stocks. The Dow jumped 874 points (1.7%) to a record 51,561.93; the S&P 500 gained 0.4% to 7,584.31; the Nasdaq fell 0.1%. Brent dropped 2.8% to $95.03. Banks and small caps led (Russell 2000 +1.4%). AI stocks fell, including Broadcom (-12.6%) and Micron (-7.7%).