What Happened:

Shares of fashion conglomerate PVH (NYSE:PVH) fell 9.1% in the pre-market session after the company reported second-quarter earnings results, with earnings forecast for the next quarter missing Wall Street's expectations. Sales growth was also underwhelming during the quarter, with revenue roughly in line with analysts' estimates, though EPS beat by a more convincing margin. Overall, this was a weaker quarter for the company.

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 very volatile and over the last year have had 5 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago, when the stock dropped 23.3% on the news that 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.

PVH is down 19.6% since the beginning of the year, and at $98.01 per share it is trading 30.3% 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 $1,369.

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