PVH Corp. shares experienced a turbulent trading day on February 4, 2025, closing at $82.51, down 0.97% from the previous close of $83.32. The stock opened at $82.50 and fluctuated between a high of $83.80 and a low of $80.37, with trading volume surging to 1,669,926 shares, nearly double the average daily volume. The decline was primarily driven by the news that China added PVH to its "unreliable entity" list, a move that could severely impact the company's operations in one of its key markets. This action is part of China's broader retaliation against new U.S. tariffs, with PVH accused of boycotting cotton from the Xinjiang region, a contentious issue linked to forced labor allegations.
The blacklisting poses significant risks to PVH's manufacturing and retail operations in China, which accounted for about 6% of its revenue and 15% of its earnings before interest and taxes in 2023. The geopolitical tensions have heightened investor concerns, as the company faces potential restrictions on its business activities in China, including import/export capabilities and new business licenses. Despite the initial sharp drop, PVH's stock managed to recover some ground by the end of the trading session.