Why PVH Stock Tumbled This Week

As the vast majority of stocks are traded more for potential than for tracking performance.PVH (NYSE: PVH)The company's stock has been on a downward spiral over the past few days. The company's fourth-quarter performance was stellar, but bottom-line guidance was less than stellar.

What followed was a wave of analysts downgrading their target prices. As a result, the company's shares were down nearly 24% in a week through Thursday night, according to data compiled by S&P Global Market Intelligence.

Double-digit Q4 results, but weak guidance

On Tuesday morning, PVH released its Q4 financial results, but it probably wishes it hadn't. Revenue was down slightly year-over-year (just under $2.5B). However, non-GAAP (adjusted) net income rose 47% to just over $222M, or $3.72 per share.

These figures exceeded analysts' consensus estimates of $2.42 billion and $3.52, respectively. So far, so good.

However, PVH's guidance was lower than expected, and Koon expects full-year revenue to fall 6% to 7% year-on-year. Koon expects the full year revenue to drop by 6% to 7% year-on-year, and in terms of profitability, Koon believes the EPS will be between US$10.75 and US$11.

Analysts Quickly Cut Price Targets

Investors are not happy with this sentiment, which has been exacerbated by a series of analyst downgrades. Several of them came from influential researchers. For exampleBank of America) analyst resonance Christopher Nardone lowered his price target from $34 per share to a new level of $122.

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Why did PVH stock plummet this week?