Shares of PVH Corp (PVH), the parent company of Calvin Klein and Tommy Hilfiger, tumbled 7.82% in pre-market trading on Thursday following the release of its first-quarter earnings report and significantly reduced full-year guidance. The sharp decline came as the apparel giant cut its earnings outlook for the year, primarily due to the impact of tariffs and an uncertain macroeconomic environment.

Despite reporting better-than-expected first-quarter results, with revenue up 2% to $1.984 billion and non-GAAP earnings per share of $2.30 beating estimates, investors focused on PVH's dramatically lowered full-year forecast. The company now expects full-year earnings per share in the range of $10.75 to $11.00, down from its previous guidance of $12.40 to $12.75. This new outlook falls well below the analyst consensus of $12.41 per share.

PVH cited several factors for the guidance cut, including an estimated $65 million hit from current tariff rates, which translates to about $1.05 per share. CEO Stefan Larsson addressed the challenges, stating, "While we are making important progress in our PVH+ Plan execution, we are navigating an increasingly uncertain consumer and macroeconomic backdrop—and given where we are on our brand-building journey, we're not yet fully able to offset that impact." Additionally, PVH's second-quarter earnings guidance of $1.85 to $2.00 per share came in below analyst expectations of $2.46, further contributing to investor concerns. Despite these headwinds, the company reaffirmed its full-year revenue outlook to be flat or increase slightly on a constant currency basis, highlighting the ongoing strength of its brands but emphasizing the pressure on profitability.