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

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Shares in the owner of Calvin Klein and Tommy Hilfiger tumbled 23 per cent as weak demand hits the business. 

PVH, which is listed in New York, warned of a 6-to-7 per cent fall in revenues this year following a slowdown across North America and Europe.  That compares with a 2 per cent rise last year. It also said profits would be lower than hoped. 

Analyst John Kernan at investment bank TD Cowen said the outlook was ‘disappointing for a company that seemed so confident’ just a few months ago.  The slump in the share price was one of the biggest ever suffered by the company. PVH chief Stefan Larsson said the outlook in Europe ‘has become more challenged’. 

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