Latest news with #PVHCorp
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14 hours ago
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Wall Street Still Loves This Stock--Even After It Crashed nearly 18% in a Day
PVH Corp (NYSE:PVH) just got hammereddown nearly 18% at 12.22pm. The selloff came despite a blockbuster year: record gross margins of 59.4%, $600 million in free cash flow, and a 10% operating margin. Non-GAAP EPS for fiscal 2024 came in at a record $11.74, up 10% from last year. The company even returned $500 million to shareholders through buybacks. On paper, these are the kinds of numbers that should get a standing ovation. Instead, investors hit the exits. So what's going on? A few storm clouds are hanging over the 2025 outlook. Management is guiding for flat to slightly higher revenue, and while EPS could rise to $12.75, the road ahead looks bumpier. Freight costs are ticking up, promotions are likely to intensify, and Chinaone of PVH's key marketsis facing a slowdown post-holiday. To make matters worse, PVH was added to China's unreliable entity list by MOFCOM, introducing a new layer of geopolitical risk. Calvin Klein also ran into product development delays, adding short-term margin pressure to the mix. And yetWall Street hasn't given up. The average price target from 13 analysts sits at $98.23, implying a potential 48.9% upside from current levels. GuruFocus places PVH's fair value at $97.10. Brokerage consensus is still Outperform. Underneath the headline drop, there are signals of strength: EBIT surged over 40% in North America, Europe's store traffic picked up in back-to-back quarters, and core product sell-through is improving. This might just be a stock investors don't like right nowbut could end up regretting not buying later. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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14 hours ago
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PVH Corp (PVH) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Revenue Growth: Up 2% on both a reported and constant currency basis. Operating Margin: 8.1% within guidance range. Earnings Per Share (EPS): $2.30, slightly ahead of guidance. Gross Margin: 58.6%, a decrease of 280 basis points compared to last year. Inventory Increase: Up 19% compared to Q1 last year. Direct-to-Consumer Revenue: Down 3% both reported and in constant currency. Wholesale Revenue: Up 7% on a constant currency basis, 6% on a reported basis. EMEA Revenue: Up 4% in constant currency. Americas Revenue: Up 7%, driven by high-teens growth in wholesale. Asia Pacific Revenue: Down 11% on a constant currency basis. Licensing Revenue: Down 2% versus last year. SG&A as a Percent of Revenue: 50.5%, a 90 basis point improvement versus last year. Shareholder Returns: Over $550 million returned through share repurchases. Warning! GuruFocus has detected 7 Warning Signs with CIEN. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PVH Corp (NYSE:PVH) reported a 2% revenue growth, exceeding their guidance, driven by disciplined execution of the PVH+ Plan. The company delivered stronger than expected non-GAAP EPS, also above their guidance. Calvin Klein's innovative product franchise, Icon Cotton Stretch underwear, drove a 25% increase in sales globally. Tommy Hilfiger's strategic product innovations and seasonal collections have led to stronger performance, particularly in Europe. PVH Corp (NYSE:PVH) returned over $550 million to shareholders through share repurchases during the quarter. The company is facing a challenging macroeconomic environment, with decreased consumer sentiment and traffic trends, particularly in North America and China. PVH Corp (NYSE:PVH) experienced operational challenges with Calvin Klein's global product creation, impacting margins. The company is dealing with a more promotional environment, leading to increased discounting and impacting gross margins. Tariffs are expected to have a $65 million unmitigated impact on EBIT for the full year. Inventory levels increased by 19% due to lower than expected demand for basics and essentials. Q: Stefan, you mentioned decreased traffic and increased promotional levels. What gives you confidence that Calvin Klein and Tommy Hilfiger still have good momentum with consumers? A: Stefan Larsson, CEO: Despite the challenging macro environment, where we lean into consumer love for Calvin Klein and Tommy Hilfiger, we see strong results. For example, our new product innovation in Calvin Klein men's underwear drove 25% growth in a major franchise. Similarly, fashion denim grew by 14%. We plan to expand these successful strategies across more of our business. Q: Can you provide an update on the cost-out efforts and whether they are affecting operational stability, particularly for Calvin Klein? A: Stefan Larsson, CEO: The operational challenges at Calvin Klein were due to the integration of global product capabilities, which is crucial for future growth. We are seeing improvements, with significant progress expected by Spring 2026. Zachary Coughlin, CFO, added that cost-saving measures are on track, with 200 basis points of SG&A leverage expected by Q4 2025. Q: How are you addressing the impact of tariffs, and what are your strategies for mitigating these effects? A: Zachary Coughlin, CFO: We have identified $65 million in unmitigated tariff effects. Our mitigation strategies include optimizing sourcing and production costs, strategic discount reductions, and targeted pricing actions where we have pricing power. Our globally diversified revenue base and strong supply chain relationships are key advantages. Q: With the expected promotional environment, how do you plan to make the brand more resilient from a pricing perspective? A: Stefan Larsson, CEO: We are focusing on scaling the impact of PVH+ execution by enhancing product innovation in key categories and increasing marketing investments to drive traffic. For example, Tommy Hilfiger's partnership with Formula One is a strategic move to connect the brand with a growing sport and enhance its lifestyle appeal. Q: Can you elaborate on the gross margin outlook for the second quarter and the back half of the year? A: Zachary Coughlin, CFO: For the full year, gross margins are expected to decrease by approximately 250 basis points, with 50 basis points due to tariffs and 100 basis points from increased promotional activity. We anticipate sequential improvement in Calvin Klein's operational issues and expect to mitigate the tariff impact over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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14 hours ago
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BofA Maintains Hold Rating on PVH Corp. (PVH), Sets $86 PT
In a report released on June 4, BofA analyst Christopher Nardone maintained a Hold rating on PVH Corp. (NYSE:PVH) with a price target of $86.00. The rating update followed the company's release of its fiscal Q1 2025 results on the same day, with revenue growing 2% to $1.984 billion compared to the same period last year. The analyst based the rating on PVH Corp.'s (NYSE:PVH) future outlook and recent financial performance, stating that it reported a minute fall in sales. This was, however, offset by higher SG&A expenses and lower margins, which resulted in a modest EPS beat. The company reported a non-GAAP EPS of $2.30 in fiscal Q1 2025, which surpassed guidance of $2.10 to $2.25. A customer trying on a sports jacket in-store, showcasing the company's sportswear range. Nardone highlighted that while regions such as America and EMEA experienced sales growth, the company's overall performance was negatively impacted by challenges in APAC and licensing. Management decided to lower the EPS guidance for fiscal 2025 to the $10.75 - $11.00 range on a non-GAAP basis compared to a range of $12.40 - $12.75 previously. The analyst reasoned that this drop reflects margin pressure concerns, somewhat influenced by tariffs. PVH Corp. (NYSE:PVH) also reduced EPS guidance for fiscal Q2 2025 to the $1.85 - $2.00 range on a non-GAAP basis. However, Nardone stated that the company has a history of exceeding conservative forecasts. According to the analyst, the valuation appears to mitigate short-term margin challenges through positive sales trends, which supports the Hold rating as the market assesses PVH Corp.'s (NYSE:PVH) potential to drive sales and manage costs. PVH Corp. (NYSE:PVH) is a luxury fashion company that operates Tommy Hilfiger and Calvin Klein brands. While we acknowledge the potential of PVH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
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14 hours ago
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PVH's Q1 Earnings Surpass Estimates, Stock Down on Slased FY25 View
PVH Corporation PVH reported better-than-expected results in the first quarter of fiscal 2025, wherein both earnings and revenues topped the Zacks Consensus Estimate. However, the bottom line fell year over year while the top line reported adjusted earnings of $2.30 per share, down 6.1% from the year-ago quarter's $2.45. The bottom line surpassed the Zacks Consensus Estimate of earnings of $2.24 per share and the company's guidance of $2.10-$2.25. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The company continues to tap into the global consumer love for Calvin Klein and TOMMY HILFIGER brands, delivering impressive results. Alongside smoothly progressing on its PVH+ Plan execution, it is navigating a highly uncertain consumer and macroeconomic landscape and is not able to completely offset the forward, PVH is focused on speeding up efforts to scale the impact of its solid product, next-level cut-through campaigns and marketplace execution across the key brands. These brands are likely to strengthen in the back half of 2025 and help the company accomplish its long-term goal of building the brands into the most desirable lifestyle brands. PVH is also committed to its Growth Driver 5 multi-year cost savings plan, which is likely to drive the growth trajectory in the second the company has reiterated its revenue outlook for fiscal 2025, it has slashed adjusted operating margin and earnings per share views given the tough present backdrop and business' current performance. The revised 2025 outlook includes an expected net negative impact with respect to the tariffs currently in effect for goods coming into the US, with a $65 million of unmitigated impact to 2025 EBIT or about $1.05 a share, and partly offsetting the impact of anticipated mitigation efforts, which will be in effect during the second half. Consequently, PVH's shares have fallen 7.4% in after-hours trading yesterday. This Zacks Rank #3 (Hold) company's stock has gained 11.7% in the past three months against the industry's 2.7% drop. Revenues jumped 2% year over year (up 2% at constant currency also) to $1.984 billion and beat the consensus mark of $1.936 billion. Management had guided quarterly revenues between flat to down 2%, and flat to down 1% on a constant-currency revenues fell 3% from the prior-year period on both a reported and constant-currency basis. Revenues in the company's owned and operated physical stores dipped 5% year over year on both a reported and constant-currency basis, as growth in EMEA was more than offset by decreases in Americas and APAC stemming from the tough consumer environment in such regions. The digital commerce unit of the owned and operated stores jumped 3% (up 4% on a constant-currency basis) year over year, backed by growth in the Americas. PVH Corp. price-eps-surprise | PVH Corp. Quote Wholesale revenues climbed 6% from the prior-year period (up 7% on a constant-currency basis), buoyed by the increases in Americas and company's gross profit of $1.16 billion dipped 3.2% year over year. The gross margin contracted 280 bps to 58.6%, thanks to the adverse shift in channel mix, elevated promotional environment, the transition of earlier-licensed women's product categories to an in-house wholesale business, and increased freight costs and higher discounts to customers to offset the impact of Calvin Klein product delivery selling, general and administrative expenses were almost flat year over year at $1 billion. The company's adjusted earnings before interest and taxes totaled $160.5 million, down 17.7% from the prior-year quarter. Effective Feb. 3, 2025, PVH changed its reportable segments to region-focused to better coordinate with the changes in its business and organizational structure. The company's new reportable segments are Europe, the Middle East and Africa (EMEA), Americas, Asia-Pacific (APAC), and revenues jumped 5% year over year (up 4% on a constant-currency basis), backed by growth across the wholesale and direct-to-consumer revenues climbed 7% (up 8% on a constant-currency basis), buoyed by growth in the wholesale business, somewhat offset by a mid-single-digit drop in the direct-to-consumer business. Higher wholesale revenues reflected the transition of earlier-licensed women's product categories in house and the effect of a shift in the timing of wholesale shipments from the second half into the first half of revenues dropped 13%, (down 11% on a constant-currency basis), due to a 3% dip from the timing of the Lunar New Year shopping period, which was mainly in the fourth quarter of fiscal 2024, along with a tough consumer environment in the region, especially in revenues fell 2% year over year owing to the transition of some previously licensed women's product categories in house. Revenues for the Calvin Klein segment were flat year over year (flat on a constant-currency basis too).Revenues for the Tommy Hilfiger brand jumped 3% year over year on a reported basis and a constant-currency basis, backed by growth in EMEA and the Americas. The Heritage Brands segment's revenues dropped 4.6% year over year. PVH ended the fiscal first quarter with cash and cash equivalents of $191 million, long-term debt of $1.7 billion and stockholders' equity of $4.6 company has entered into ASR agreements this April to buy back an aggregate of $500 million of its common stock under its present $5-billion stock repurchase alignment with the PVH+ Plan's objective to return excess cash to shareholders, the company bought back 5.4 million shares of its common stock and paid $561 million with respect to the ASR agreements and open market purchases in the reported quarter. It made a total repurchase of 4.7 million shares for $500 million in fiscal 2024. Management now does not project making any additional payments to buy back the common stock in 2025. For the second quarter, revenues are projected to rise low-single digits year over year (flat to up slightly on a constant-currency basis). Earnings per share, on a non-GAAP basis, are expected to be in the range of $1.85-$2, lower than $3.01 earned in the year-ago quarter. This view includes an unfavorable, unmitigated impact with respect to the tariffs currently in place for goods coming into the US of nearly 20 cents a share. The foreign currency fluctuation impacts on second-quarter EPS are not likely to be material. Interest expenses are anticipated to increase to roughly $25 million compared with $19 million in the second quarter of fiscal 2024, while the adjusted effective tax rate is projected to be 20%.For fiscal 2025, the company continues to anticipate revenues between flat to up slightly year over year, which is consistent on a constant-currency basis. PVH now expects the adjusted operating margin to be nearly 8.5% compared with the earlier guided range of flat to up slightly from 10% in fiscal 2024. Management now envisions non-GAAP EPS to be in the range of $10.75-$11 compared with the earlier guidance of $12.40-$12.75 and $11.74 delivered in fiscal 2024. The EPS guidance for fiscal 2025 reflects a favorable impact of around 10 cents per share from foreign currency expenses are likely to increase to roughly $85 million compared with $67 million last year, and the adjusted effective tax rate is forecast to be approximately 22%. We have highlighted three better-ranked stocks, namely, Ralph Lauren RL, Gildan Activewear GIL and The Marcus MCS. Ralph Lauren, a designer and distributor of premium lifestyle products, including apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Ralph Lauren has a trailing four-quarter earnings surprise of 9%, on average. The Zacks Consensus Estimate for RL's current financial-year sales indicates growth of 3.5% from the year-ago figure. Gildan Activewear, a manufacturer of premium quality branded basic activewear, carries a Zacks Rank of 2 at present. GIL has a trailing four-quarter earnings surprise of 2.8%, on average. The consensus estimate for Gildan Activewear's current financial-year sales indicates growth of 4.3% from the year-ago figure. The Marcus carries a Zacks Rank of 2 at present. MCS has a negative trailing four-quarter earnings surprise of 145.7%, on average. The Zacks Consensus Estimate for MCS' 2025 sales indicates an increase of 5.2% from the year-ago level. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Marcus Corporation (The) (MCS) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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PVH Corp (PVH) Announces Licensing Agreement with Herman Kay
On June 5, PVH Corp. (NYSE:PVH) announced a new licensing agreement with Herman Kay-Mystic LLC to produce select outerwear under the Calvin Klein and TOMMY HILFIGER brands. PVH Corp. (NYSE: PVH) is taking back its licensed women's wholesale business in North America through a multi-year initiative to directly operate core lifestyle categories, including underwear, sportswear, and jeans, for the Calvin Klein and TOMMY HILFIGER brands. Herman Kay will produce select wholesale men's and women's outerwear for the US and Canadian markets, with a launch expected in Spring 2026. PVH Corp. (NYSE:PVH) also indicated that it will partner with key experts for certain wholesale categories to further scale in the marketplace. A customer trying on a sports jacket in-store, showcasing the company's sportswear range. The licensing agreement with Herman Kay-Mystic LLC aligns with the company's long-term brand-building growth strategy called the PVH+ Plan. The plan has shown resilience with a 10% rise in non-GAAP EPS in early 2025 despite macroeconomic challenges. Moreover, by partnering with a US-based manufacturer the company has reduced risks related to supply chain disruptions and tariffs. PVH Corp. (NYSE:PVH) is one of the largest fashion companies in the world known for its popular brands, Calvin Klein and TOMMY HILFIGER. While we acknowledge the potential of PVH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
