Core Insights - PVH Corporation (PVH) is trading at a discount with a forward 12-month P/E ratio of 5.49X, significantly lower than the industry average of 10.86X, indicating strong fundamentals and attractiveness for long-term value-focused investors [1][4] - The stock has shown a recent gain of 6.5% over the past month, although this is below the industry growth of 9.1% and the S&P 500's growth of 12.3% [4] - PVH's diversified brand portfolio, particularly its flagship brands Calvin Klein and TOMMY HILFIGER, provides a competitive advantage and has led to low single-digit revenue growth in Q4 of fiscal 2024 [8][9] Financial Performance - For the fiscal first quarter, PVH expects revenues to be flat to down 2% year-over-year, with gross margin projected to decline by approximately 250 basis points due to various cost pressures [12][13] - Non-GAAP EPS is forecasted at $2.10-$2.25, down from $2.45 in the previous year, with a negative impact from currency fluctuations [14] - The company anticipates a 100-basis point decline in gross margin for the full fiscal year, alongside increased interest expenses [14] Strategic Initiatives - PVH is implementing a multi-year PVH+ Plan aimed at driving sustainable growth through brand leadership, operational efficiency, and disciplined financial management [11][15] - The strategy focuses on five key drivers: product excellence, consumer engagement, digital marketplace leadership, data-driven operations, and efficiency-led investment [11] - The company is taking proactive measures to navigate challenges, particularly in North America and China, while investing in long-term growth opportunities [10][12] Market Challenges - PVH faces macroeconomic uncertainties, particularly in North America and China, with weakened consumer demand impacting performance [12] - The company has been added to China's MOFCOM unreliable entity list, which is expected to create temporary margin headwinds [12] - Operating margins are projected to decline due to increased costs and a greater mix of lower-margin wholesale revenues [13]

Core Viewpoint - PVH shares have declined approximately 8.6% since the last earnings report, underperforming the S&P 500, raising questions about the potential for continued negative trends or a breakout before the next earnings release [1]. Group 1: Earnings and Estimates - Fresh estimates for PVH have trended downward over the past month, indicating a negative outlook [2]. - The magnitude of the downward revisions suggests a significant shift in expectations for the stock [4]. Group 2: VGM Scores - PVH currently holds a Growth Score of B and a Momentum Score of B, while achieving an A grade on the value side, placing it in the top quintile for this investment strategy [3]. - The aggregate VGM Score for PVH is A, which is relevant for investors not focused on a single strategy [3]. Group 3: Outlook - PVH has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4].

Company Overview - PVH shares increased by 16.9% to $70.70 in the last trading session, following a period of 10.3% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is experiencing strong momentum in its global brands, Calvin Klein and TOMMY HILFIGER, supported by the PVH+ Plan and expansion efforts [2] Financial Performance - PVH's earnings and sales for the fourth quarter of fiscal 2024 exceeded the Zacks Consensus Estimate, with a strong outlook projecting record profits for fiscal 2025 despite macroeconomic challenges [2] - The upcoming quarterly earnings are expected to be $2.25 per share, reflecting an 8.2% decrease year-over-year, while revenues are anticipated to be $1.94 billion, down 0.8% from the previous year [3] Earnings Estimates and Market Sentiment - The consensus EPS estimate for PVH has been revised down by 7.6% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - PVH currently holds a Zacks Rank of 3 (Hold), suggesting a cautious outlook among analysts [4] Industry Context - PVH operates within the Zacks Textile - Apparel industry, where another company, Superior Group, has seen a significant decline of 30.6% over the past month, closing at $10.46 [4] - Superior Group's consensus EPS estimate has decreased by 31.5% to $0.11, representing a 54.2% decline from the previous year, and it currently holds a Zacks Rank of 5 (Strong Sell) [5]

Group 1 - PVH Corp., owner of brands like Tommy Hilfiger and Calvin Klein, has seen its stock drop by 27% since August [1] - The article contrasts the current performance of PVH Corp. with a previous Buy rating [1] Group 2 - The author, Manika, has over 20 years of experience in investment management, stock broking, and investment banking [1] - Manika runs a profile called Long Term Tips (LTT), focusing on opportunities in the green economy [1] - The investing group, Green Growth Giants, delves deeper into opportunities within the green economy segment [1]

Core Viewpoint - PVH Corp. is experiencing a rebound after reaching a low in March, driven by its PVH+ strategy, which is improving revenue and earnings quality despite ongoing headwinds in the apparel sector [1][5]. Financial Performance - In FQ4 2024, PVH reported net revenue of $2.37 billion, a decrease of 4.8% year-over-year, but exceeded consensus forecasts by 160 basis points [5]. - The company faced a 2% negative impact from foreign exchange translation, a 1% impact from divestitures, and a 3% impact from tough year-over-year comparisons [5]. - Adjusted earnings per share (EPS) of $3.27 beat the average forecast by $0.06, supporting the company's balance sheet and aggressive capital return strategy [8]. Capital Return Strategy - PVH has aggressively reduced its share count by 8% in F2024 and plans for another significant decrease in 2025 [2]. - The board approved an additional $500 million in buybacks, representing about 15% of the pre-release market cap, expected to be completed by year-end [2]. Analyst Sentiment - The consensus among 15 analysts is a Moderate Buy rating, with over 50% rating the stock as a Buy or higher [3]. - Despite a reset in price targets, many revisions remain above the consensus, indicating potential for significant upside [4]. Stock Forecast - The 12-month stock price forecast for PVH is $107.07, indicating a potential upside of 37.67% from the current price of $77.77 [7]. - The high forecast is set at $160.00, while the low forecast is $72.00 [7]. Operational Outlook - Margins contracted slightly in Q4 compared to the previous year but widened significantly for the year, achieving record gross margins [7]. - Guidance for future revenue is flat to slightly up, with expectations for flat to slightly wider margins, supporting the capital return outlook [8]. Market Reaction - Following the release of positive guidance and the buyback announcement, PVH's stock experienced a 15% increase, indicating a rebound in market sentiment [10].

Core Insights - PVH Corporation's shares increased by 18.10% following the release of its fourth-quarter fiscal 2024 earnings, which, despite a year-over-year decline in sales and earnings, exceeded analysts' expectations and provided a strong outlook for fiscal 2025 [1][3][8] Financial Performance - PVH reported adjusted earnings per share of $3.27 on revenues of $2.37 billion, surpassing analyst projections [3] - International revenues decreased by 6% (3% in constant currency), while North America revenues for Tommy Hilfiger and Calvin Klein rose by 1% year over year [4] - Direct-to-consumer revenues fell by 5% (2% in constant currency), and wholesale revenues also declined by 5% (2% in constant currency) [5] - Gross profit was $1.4 billion, reflecting a 6.7% decline year over year, but gross margin expanded by 210 basis points to 58.2% [6] Future Outlook - For fiscal 2025, PVH expects revenues to be flat to slightly up year over year on a constant-currency basis, with adjusted earnings per share projected between $12.40 and $12.75, an increase from $11.74 per share last year [7] - The earnings growth will be supported by a $500 million stock buyback program aimed at enhancing per-share profitability [8] Strategic Initiatives - PVH is advancing its multi-year PVH+ Plan, focusing on sustainable growth through strengthening core capabilities and enhancing consumer connections for its brands [9] - The plan emphasizes five key drivers: winning with product, enhancing consumer engagement, excelling in a digitally-led marketplace, developing a demand- and data-driven operating model, and driving efficiencies for reinvestment in growth [9][10] - The company aims to position Calvin Klein and TOMMY HILFIGER among the most desirable lifestyle brands by focusing on key growth categories and expanding in high-demand global markets [10]

PVH (PVH 17.99%) stock posted big gains in Tuesday's trading following the release of the company's fiscal fourth-quarter earnings report. The clothing company's share price closed out the day's trading up 18%. After the market closed yesterday, PVH published results for the fourth quarter of its last fiscal year, which ended Feb. 2. The company posted sales and earnings for the period that beat the market's expectations, and it also issued solid forward guidance and announced an accelerated stock buyback p ...

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Core Viewpoint - PVH Corporation reported better-than-expected fourth-quarter results for fiscal 2024, with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined year over year due to a challenging macroeconomic environment [1]. Financial Performance - Adjusted earnings were $3.27 per share, a decrease of 12.1% from $3.72 in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.19 and the company's guidance of $3.05-$3.20 [2]. - Revenues fell 5% year over year to $2.372 billion, but this was above the consensus mark of $2.347 billion, with management initially guiding for a 6-7% decline [3]. - Gross profit was $1.4 billion, down 6.7% year over year, while gross margin improved by 210 basis points to 58.2% [7]. Segment Analysis - Calvin Klein segment revenues decreased by 2% year over year to $1 billion, with a 3% increase in North America offset by a 4% decline internationally [8]. - Tommy Hilfiger brand revenues dropped 5% year over year to $1.3 billion, with international revenues down 7% [9]. - The Heritage Brands segment saw a significant revenue decline of 41% year over year, including a 28% drop in women's intimates sales [9]. Cash Flow and Share Repurchase - At the end of the fourth quarter, PVH had cash and cash equivalents of $748 million and long-term debt of $1.6 billion [11]. - The company repurchased 2.4 million shares for $247 million in the reported quarter, totaling 4.7 million shares for $500 million in fiscal 2024 [11]. Future Outlook - For Q1 FY25, revenues are expected to be flat to down 2% year over year, with non-GAAP EPS projected between $2.10-$2.25, down from $2.45 in the previous year [13][14]. - For fiscal 2025, PVH anticipates revenues to be flat to slightly up year over year, with adjusted operating margins expected to remain nearly flat compared to 10.1% in fiscal 2023 [15]. - Non-GAAP EPS guidance for fiscal 2025 is set between $12.40-$12.75, reflecting a negative impact of around 20 cents per share from currency movements [16].

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