(Reuters) - Shares of Calvin Klein-owner PVH Corp slumped nearly 23% before the bell on Tuesday, after it forecast worse-than-feared annual revenue and profit, mainly hit by challenging demand in Europe.

The apparel maker, which also owns Tommy Hilfiger, forecast its fiscal 2024 revenue to fall between 6% and 7%, steeper than the 2.3% drop estimated by analysts, according to LSEG data. The range included a drag from the planned sale of its women's intimates business, it said.

"While buy-side expectations were for a wider range, the 6% to 7% decline is disappointing for a company that seemed so confident following Q3 results," TD Cowen analyst John Kernan wrote in a note.

PVH's wholesale revenue declined 10% in the fourth quarter, as wholesale customers across North America and Europe continued to take a cautious approach.

"In Europe, where the macro has become more challenged, our focus is on quality of sales to further strengthen our market-leading position," CEO Stefan Larsson said. Europe accounted for nearly half of the company's revenue in 2023.

Retailers such as PVH, Levi Strauss and Ralph Lauren ( RL ) have struggled with weaker wholesale business in North America due to department stores and retailers cutting back on orders owing to slow consumer demand.

PVH forecast its annual operating margin to be roughly flat, with earnings per share in the range of $10.75 to $11.00. Analysts on average estimated earnings of $11.89.

The company, however, beat analysts' expectations for quarterly sales and profit on the back on a strong holiday demand and better inventory planning.

PVH's forward price-to-earnings multiple, a common benchmark for valuing stocks, is at 11.35, lower than Ralph Lauren ( RL ) and Lululemon's P/E ratio of 16.28 and 26.27, respectively.

Shares of peer Ralph Lauren ( RL ) were down 3.7% in premarket trading.