PVH Corp, the parent company of brands like Tommy Hilfiger and Calvin Klein, saw its stock plummet 7.19% in pre-market trading on Monday. The sharp decline comes as multiple analysts lowered their price targets for the apparel giant, citing concerns over a new U.S. tariff plan that could significantly impact the clothing industry.

Both TD Cowen and Citigroup have reduced their price targets for PVH Corp. TD Cowen cut its target from $125 to $109, while Citigroup made a more substantial reduction, lowering its target from $83 to $68. These downgrades reflect growing pessimism about PVH's near-term prospects in light of potential tariff increases.

The catalyst for these revisions appears to be a sweeping new U.S. tariff plan that analysts at Citi warn will hit apparel companies particularly hard. With most products sourced from Asia, companies like PVH are expected to face significant challenges. Citi analysts suggest that these firms lack the pricing power to offset an assumed 30% blended tariff rate, and any attempts to raise prices could result in weaker demand. This development has led to reduced earnings estimates for PVH and several other major players in the apparel industry for fiscal years 2025 and 2026.