Financial Data and Key Metrics Changes - The company reported a revenue decline of 5% year-over-year, with a 2% decline attributed to the sale of the Heritage Intimates business [42] - Non-GAAP EBIT margin was 10.5%, flat compared to the previous year, driven by higher gross margins and strong expense management [40][53] - Gross margin improved by 170 basis points year-over-year to 58.4%, with half of the increase due to a higher direct-to-consumer mix [50] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue was flat on a reported basis and down 1% in constant currency, with improvements noted in September and October [10][47] - Wholesale revenue declined by 4% on a reported basis and 5% in constant currency, excluding a 4% negative impact from the Heritage Brand sale [11][48] - Calvin Klein revenues decreased by 3% on a reported basis, while Tommy Hilfiger revenues were down 1% [49] Market Data and Key Metrics Changes - North America saw a low-single-digit decline in D2C revenue, with a high-single-digit decline in wholesale due to shipment timing [23][46] - In Europe, overall revenue declined by 1% on a reported basis, with a 6% impact from quality of sales actions [27] - Asia Pacific delivered mid-single-digit growth on a reported basis, with Japan leading and China increasing by 7% in local currency [32] Company Strategy and Development Direction - The company is focused on executing the PVH+ plan, aiming for long-term profitable growth through improved product execution and consumer engagement [15][64] - A flagship store for Calvin Klein is set to open in New York's SoHo, enhancing brand visibility and consumer engagement [18] - The company aims to return to modest growth in 2025, targeting a long-term operating margin of 15% [14][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2025, supported by improved D2C trends and inventory composition [72] - The company is navigating a challenging macro environment but remains focused on driving efficiencies and maintaining profitability [38][110] - Management highlighted the importance of consumer engagement and brand relevance in driving future growth [95] Other Important Information - The company is under investigation by China's Ministry of Commerce, which is ongoing, and it has cooperated fully with the authorities [34][36] - The company generated approximately 6% of its revenue and 16% of EBIT from China in 2023 [36] Q&A Session Summary Question: Could you elaborate on customer demand for fall product assortments? - Management noted double-digit sell-through improvements for Fall '24 products across all regions and channels, indicating strong demand [68][70] Question: Can you help us size the fourth quarter gross margin guidance? - Management explained that the gross margin is expected to decline by 200 basis points due to a more promotional environment and increased freight costs [86][88] Question: Can you discuss the promotional activity in North America? - Management indicated that the holiday shopping season started earlier this year, leading to increased promotional pressure, but they are managing inventory effectively [110] Question: How is the transition of licensing impacting the business? - Management stated that bringing women's products back in-house is crucial for long-term competitiveness and brand strength [116]

Core Viewpoint - PVH Corporation reported better-than-expected earnings in Q3 FY2024, with adjusted EPS and revenues surpassing estimates, although revenues declined year-over-year [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $3.03, a 4.5% increase from $2.90 in the prior year, exceeding the Zacks Consensus Estimate of $2.61 and the company's guidance of $2.50 [3] - Revenues fell 5% year-over-year to $2,255 million, but were above the consensus estimate of $2,228 million; management had anticipated a decline of 6-7% [4] - Gross profit was $1.3 billion, down 1.5% year-over-year, while gross margin expanded by 170 basis points to 58.4% due to a favorable shift in channel mix [8] Revenue Breakdown - International revenues increased by 0.4%, but decreased by 1.8% on a constant currency basis; growth in Asia Pacific was offset by reduced sales in Europe [5] - Direct-to-consumer revenues rose 0.4% year-over-year, while wholesale revenues fell 7.6% [6][7] - The Calvin Klein segment saw a 2.8% decline in revenues, while Tommy Hilfiger revenues dropped 0.7% [10][11] Guidance and Future Expectations - For Q4 FY2024, revenues are projected to decline by 6-7%, with adjusted EPS expected in the range of $3.05-$3.20 compared to $3.72 in the prior year [14][15] - For the full fiscal year 2024, the company anticipates a revenue decline of 6-7% and adjusted operating margin to remain nearly flat [16] - Management revised EPS guidance downwards, now expecting non-GAAP EPS of $11.55-$11.70, compared to the previous range of $11.55-$11.80 [17] Shareholder Returns - The company repurchased 300,000 shares for $29 million in the reported quarter, with a total of 2.4 million shares repurchased for $254 million in the first nine months of FY2024 [13]

PVH (PVH) came out with quarterly earnings of $3.03 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $2.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.09%. A quarter ago, it was expected that this owner of the Calvin Klein and Tommy Hilfiger brands would post earnings of $2.27 per share when it actually produced earnings of $3.01, delivering a surprise of 32.60%.Over the l ...

Core Viewpoint - PVH Corporation is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2024, with revenues estimated at $2.2 billion, a decrease of 5.9% year-over-year, and earnings per share projected at $2.61, down 10% from the previous year [1]. Financial Performance - The consensus estimate for quarterly revenues is $2.2 billion, reflecting a 5.9% decline from the prior year [1]. - The earnings consensus is set at $2.61 per share, indicating a 10% year-over-year decrease [1]. - In the last reported quarter, the company achieved an earnings surprise of 32.6%, with an average trailing four-quarter earnings surprise of 14.9% [2]. Factors Impacting Earnings - PVH has faced challenges in its Heritage Brands segment, particularly due to declining sales in the women's intimates business [4]. - Increased raw material costs and currency headwinds have negatively impacted profitability [4]. - Management previously guided for a revenue decline of 6-7% year-over-year, including a 2% reduction from the Heritage intimates business sale [5]. - The anticipated operating margin for the third quarter is expected to decline year-over-year, despite increased gross margins [5]. Sales Projections - The Zacks Consensus Estimate for Tommy Hilfiger and Calvin Klein sales is $1.2 billion and $997 million, respectively, representing year-over-year drops of 4.2% and 1.7% [6]. - A high single-digit revenue decrease is anticipated in the wholesale business, with a 5% decline attributed to the Heritage intimates business [6]. Strategic Initiatives - PVH's PVH+ Plan aims to accelerate growth by enhancing core strengths and connecting its brands with consumers [7]. - The company is focused on creating high-quality products in significant growth categories and strengthening its global presence [7]. Valuation Perspective - PVH shares are currently trading at a forward 12-month price-to-earnings ratio of 8.60X, which is below the five-year median of 9.54X and the industry average of 13.76X, indicating an attractive investment opportunity [9].

Wall Street expects a year-over-year decline in earnings on lower revenues when PVH (PVH) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on December 4. On the oth ...

PVH Corp. (PVH) is currently trading at a notably low price-to-earnings (P/E) multiple, which is below the Zacks Textile - Apparel industry and broader Consumer Discretionary averages. PVH's forward 12-month P/E ratio is 8.09, lower than the industry average of 13.59x and the sector average of 18.62x. A lower P/E ratio often signals that a stock may be priced attractively relative to its earnings potential, which can be appealing to value-focused investors. The stock is undervalued compared with its industr ...

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PVH Corporation (PVH) appears well-poised to tap the positive trends in the fashion arena, thanks to its sturdy digital endeavors and other robust strategies. The company's PVH+ Plan also looks quite encouraging. Strength in brands, particularly Calvin Klein and TOMMY HILFIGER, is acting as a tailwind. Let's delve deeper. PVH's Robust Strategies Bode Well PVH Corp enters into the next level of PVH+ Plan execution. In Europe, the company is on track with the efforts regarding the targeted quality of sales. I ...

My previous investment thought on PVH Corp. (NYSE: PVH ) (published in April) was a sell rating because of the poor consumer spending environment and the poor headline growth outlook from the self-inflicted 500bps headwind. Indeed, my recommendation was spot on I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My invest ...

Shares of PVH Corporation (PVH) have surged 27.4% in the past year, outperforming the Zacks Textile - Apparel industry's 1.1% decline and the broader Consumer Discretionary sector's 16.4% rise. This upside can be attributed to the company's smooth execution of its PVH+ Plan, which aims to deliver sustainable growth. Strength in brands, particularly Calvin Klein and TOMMY HILFIGER, is an added positive. Currently priced at $97.13, PVH stock is trading at 31.2% to its 52-week high of $141.15, reached on April ...