Calvin Klein-owner PVR rocked by sales slump as weak demand hits fashion firms

Shares in the owners of Calvin Klein and Tommy Hilfiger fell 23 percent as weak demand hits the company.

PVH, which is listed in New York, warned of a 6 to 7 percent drop in sales this year after a slowdown in North America and Europe. That is comparable to an increase of 2 percent last year. It was also said that profits would be lower than hoped.

Analyst John Kernan of investment bank TD Cowen said the outlook a few months ago was “disappointing for a company that seemed so confident.” The share price drop was one of the largest the company has ever experienced. PVH chief Stefan Larsson said the outlook in Europe “has become more challenging.”

He added that fashion brands in the US have suffered as department stores and other retailers have scaled back orders due to weak demand among shoppers.