Updated

Calvin Klein is under fire for a sexually explicit new billboard that's caught the eyes — and turned the stomachs — of many people who have seen it in New York.

The blue-jeans giant has unveiled a jumbo ad that shows two young men and a young woman entwined in a semi-nude threesome, as another man undresses.

The graphic image at the intersection of Houston and Lafayette Streets, in a hip neighborhood in downtown Manhattan, has some passersby oohing and aahing — and others averting their eyes.

"It's soft pornography is what it is," said Laurie Baranowski, who said she was in New York for a visit. "I don't think that just because you put Calvin Klein's name on it makes it acceptable. It's a beautiful picture, but I don't think that that's the place for it."

But others said that in New York, pretty much anything goes.

Joaquin Liguas, who heard about the billboard when he woke up in the morning, told FOXNews.com he wasn't bothered by it; he's seen much racier stuff on city streets.

But family values organizations were troubled by the latest controversial move from Calvin Klein and said it was time for the company to take the 50-foot-tall ad down.

"I think that this company has a moral obligation to our country to display their product in an appropriate manner, especially in a public venue where you have thousands of thousands of children who will see this ad," said Randy Sharp of the American Family Association.

"I find this kind of ad repulsive, I find it disgusting, I find it inappropriate for a public venue. For my family of five, Calvin Klein will never see a dollar of our money."

A spokesman for Calvin Klein could not be reached Monday morning, but he said earlier that the company's "intention was to create a very sexy campaign that speaks to our targeted demographic."

Whatever demographic they have in mind, Wendy Wright, president of Concerned Women for America, said the ad seems designed to offend just about everyone.

"This is graphic and intended to shock any sensibility — even in New York," said Wright. "New York tries to sell itself as a place for tourists, not just sexually deviant tourists."

Calvin Klein has long pushed the envelope — and sales of denim — with their sexually provocative ads. But the jeanmaker has had a number of spots pulled from TV for using minors to move their product, and just last year saw an ad starring actress Eva Mendes banned for explicit content.

Sharp said Calvin Klein was using the ad to generate shock value and publicity, and he wondered why the clothing company didn't try putting more of its duds on display.

"Why do you push skin to sell clothing?" he asked.

But others said passersby should be thankful it was a jeans ad that was up on the billboard.

"Well I'm happy that it's Calvin Klein so they have to wear the trousers," said Sike Bridge. "If not, it would be worse, no?"