(Bloomberg) -- PVH Corp. shares plunged the most since 1987’s Black Monday crash after the company gave full-year sales guidance that fell short of expectations. 

The clothier, which owns the Tommy Hilfiger and Calvin Klein brands, said it expects revenue this year to decrease 6% to 7%, compared with a 2% increase last year. While some of the expected decrease stems from the sale of Heritage Brands, its women’s intimates business, the company also noted a difficult macroeconomic backdrop, particularly in Europe.

The 23% decline as of 9:35 a.m. in New York was the biggest drop for PVH since Oct. 19, 1987.

PVH has been working to execute a transformation plan focused on strengthening Calvin Klein and Tommy Hilfiger, which have lost momentum among shoppers in recent years. In the fourth quarter, which includes the crucial holiday season, profitability exceeded the average analyst estimate, thanks in part to better inventory management. 

Still, revenue growth hasn’t held up in some regions. Calvin Klein sales in North America fell 8% in the fourth quarter, driven by a decline in the wholesale business, while Tommy Hilfiger international revenue was down 1%.

“PVH deserves much credit for what it achieved with Calvin Klein and Tommy Hilfiger, growing them into two of the largest brands in history,” BMO analyst Simeon Siegel said in a note. “That said, we believe CK has reached a revenue peak and could benefit from a greater focus on profits versus sales.”

(Updates with share details in first and third paragraphs, analyst comment in final paragraph.)

©2024 Bloomberg L.P.