Investors in PVH Corp. (PVH) need to pay close attention to the stock based on moves in the options market lately. That is because the Mar 21, 2025 $65.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean th ...

Core Viewpoint - PVH, the owner of Calvin Klein and Tommy Hilfiger, has been blacklisted by China's Ministry of Commerce for undermining market rules and violating Chinese laws, marking a significant escalation in the U.S.-China trade tensions [1][3][4] Group 1: Blacklisting and Implications - PVH is the first fashion brand to be added to China's "unreliable entities" list, a designation typically reserved for defense and biotech companies [3] - The blacklisting could effectively halt all PVH business operations in China, although no specific sanctions have been announced yet [2][3] - The decision follows an ongoing investigation into PVH's operations in China that began in September [3][6] Group 2: Business Impact - The Asia-Pacific region accounted for approximately 20% of PVH's $9.2 billion revenues in the most recent fiscal year 2023, highlighting the importance of the Chinese market for the company's retail growth [7] - PVH operates 128 factories in China, producing about 20% of its goods, which could face significant disruption due to the blacklisting [8] - The company also has manufacturing facilities in Vietnam, Turkey, and other countries, but shifting production may compromise quality and production processes [8] Group 3: Strategic Context - The blacklisting is seen as a retaliatory measure in the ongoing U.S.-China trade war, particularly in response to PVH's ban on Xinjiang cotton, aligning with U.S. government guidelines [6][11] - Experts suggest that China targeted PVH because it is a high-visibility brand that is large enough to make an impact but not so large as to cause major disruptions in the U.S. market [9][11] - The situation illustrates the broader geopolitical tensions, with PVH being used as an example of the potential consequences for U.S. companies operating in China amid escalating trade restrictions [11]

Stock Performance - PVH Corp stock is down 2% in premarket trading following a downgrade by J P Morgan Securities from "overweight" to "neutral" and a price target reduction from $149 to $113 [1] - Year-to-date, PVH shares have an 8 9% deficit, with five out of 14 brokerages maintaining a "hold" rating The consensus target price of $126 31 represents a 31 1% premium to Thursday's close [2] - Over the longer term, PVH stock is down 18 1% year-over-year, nearing its 52-week low of $88 60 and facing potential resistance at its 100-day moving average [3] Options Strategy - PVH's Schaeffer's Volatility Index (SVI) of 33% ranks in the 20th percentile over the last 12 months, indicating relatively low volatility [4] - The Schaeffer's Volatility Scorecard (SVS) for PVH is 25 out of 100, suggesting it is a strong candidate for premium-selling strategies [4]

PVH Corporation (PVH) has been gaining from the strong execution of the PVH+ Plan, alongside strength in its brands and cost-management efforts. The plan mainly aims at accelerating growth by boosting its core strengths and connecting Calvin Klein and TOMMY HILFIGER brands with the consumers. Let’s delve deeper.PVH’s StrategiesThe PVH+ Plan is focused on five key drivers, which are win with product; win with consumer engagement; win in the digitally-led marketplace; develop a demand and data-driven operatin ...

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- Revman International, Inc. today announced that it has entered into a license agreement with Tommy Hilfiger a wholly owned subsidiary of PVH Corp. [NYSE:PVH], for the development, manufacturing and distribution of new home accessories in the U.S., Canada, and Mexico. The new TOMMY HILFIGER home collection will launch in Spring. The agreement's initial term is through 2029. "We are extremely pleased to be the new home fashion products licensee for Tommy Hilfiger," said ...

My previous investment thought on PVH Corp. (NYSE: PVH ) (published on Oct’24 ) was a buy rating because the valuation had gotten cheap, and that demand outlook was much more favorable than in Apr’24. I remain buyI 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 investment duration is the medium to long-term. Ultimat ...

PVH Corporation (PVH) stock has gained 7% over the past three months compared with the Textile - Apparel industry’s 17.7% growth. Also, the broader Consumer Discretionary sector has returned 10.7% while the S&P 500 index has grown 3.5% in the same time frame.The company is gaining from the strong execution of the PVH+ Plan, alongside strength in its brands and cost-management efforts. However, a tough macro backdrop and adverse foreign currency translations remain concerns. A soft outlook for the fourth qua ...

Net Income and Comprehensive Income - Net income for the thirteen weeks ended November 3, 2024, was $131.9 million, compared to $161.6 million in the same period last year[9] - Net income for the thirty-nine weeks ended November 3, 2024, was $441.3 million, compared to $391.8 million in the same period last year[9] - Total other comprehensive loss for the thirteen weeks ended November 3, 2024, was $12.8 million, compared to $81.6 million in the same period last year[9] - Total other comprehensive loss for the thirty-nine weeks ended November 3, 2024, was $34.0 million, compared to $91.6 million in the same period last year[9] - Comprehensive income for the thirty-nine weeks ended October 29, 2023, was $107.5 million, $112.7 million, and $80.0 million for the respective periods[16] - Comprehensive income for the thirty-nine weeks ended November 3, 2024, was $147.4 million[18] Cash and Cash Equivalents - Cash and cash equivalents as of November 3, 2024, were $559.6 million, compared to $707.6 million as of February 4, 2024, and $357.6 million as of October 29, 2023[12] Total Assets and Liabilities - Total current assets as of November 3, 2024, were $3,478.2 million, compared to $3,259.7 million as of February 4, 2024, and $3,347.1 million as of October 29, 2023[12] - Total liabilities as of November 3, 2024, were $5,953.1 million, compared to $6,053.0 million as of February 4, 2024, and $6,112.8 million as of October 29, 2023[12] Cash Flow Activities - Net cash provided by operating activities for the thirty-nine weeks ended November 3, 2024, was $254.4 million, compared to $311.7 million in the same period last year[14] - Net cash used by investing activities for the thirty-nine weeks ended November 3, 2024, was $100.6 million, compared to $165.3 million in the same period last year[14] - Net cash used by financing activities for the thirty-nine weeks ended November 3, 2024, was $300.0 million, compared to $330.8 million in the same period last year[14] Foreign Currency and Hedging - Foreign currency translation adjustments resulted in a loss of $16.7 million, a gain of $21.1 million, and a loss of $154.6 million for the respective periods[16] - Net unrealized and realized loss related to effective cash flow hedges was $2.0 million, a gain of $0.3 million, and a gain of $24.7 million for the respective periods[16] - Net loss on net investment hedges was $9.8 million, $2.9 million, and a gain of $48.3 million for the respective periods[16] - The notional amount outstanding of foreign currency forward contracts was $1,341.0 million at November 3, 2024, with contracts expiring between November 2024 and April 2026[90] - The fair value and carrying value of foreign currency borrowings designated as net investment hedges were $1,222.6 million and $1,211.0 million, respectively, as of November 3, 2024[86] - The company entered into cross-currency swap contracts in 2023, converting $500.0 million of USD-denominated debt to €457.2 million of EUR-denominated debt, with a weighted average interest rate of 1.405%[87] - The total gain recognized in other comprehensive income from cash flow and net investment hedges was $19.7 million for the thirteen weeks ended November 3, 2024[93] - The total gain reclassified from accumulated other comprehensive loss (AOCL) into income was $7.0 million for the thirteen weeks ended November 3, 2024[94] - A net gain in AOCL on foreign currency forward contracts of $10.7 million is estimated to be reclassified in the next 12 months to cost of goods sold[94] Stock-Based Compensation and Equity - Stock-based compensation expense was $13.1 million, $14.3 million, and $12.1 million for the respective periods[16] - Stock-based compensation expense for the thirty-nine weeks ended November 3, 2024, was $39.1 million, with a recognized income tax benefit of $4.8 million[110] - The weighted average grant date fair value per stock option for the thirty-nine weeks ended November 3, 2024, was $60.96, with a weighted average risk-free interest rate of 4.33%[111] - RSU activity for the thirty-nine weeks ended November 3, 2024, showed 1,116 non-vested RSUs with a weighted average grant date fair value of $93.14 per RSU[113] - PSU awards granted in 2021 resulted in 55,000 shares earned, with performance on the one-year EBIT measure above the maximum level and three-year TSR measure between threshold and target levels[115] - The company estimates the fair value of stock options using the Black-Scholes-Merton model, with a weighted average expected stock option term of 6.25 years and company volatility of 53.32%[111] - The fair value of RSUs is determined based on the closing price of the company's common stock on the grant date[112] - Weighted average grant date fair value per PSU is $138.12 with a weighted average risk-free interest rate of 4.71% and company volatility of 48.28%[118] - Total PSUs non-vested at November 3, 2024 increased to 307,000 from 236,000 at February 4, 2024, with a weighted average grant date fair value of $106.68[120] - Accumulated Other Comprehensive Loss (AOCL) increased to $787.6 million at November 3, 2024 from $753.6 million at February 4, 2024, driven by unfavorable foreign currency translation adjustments[121][122] Revenue and Sales - Revenue from Israel and the Middle East is expected to be less than 1% and 2% of total revenue in 2024, respectively[27] - Total revenue for the thirteen weeks ended 11/3/24 was $2,255.1 million, down from $2,362.9 million in the same period in 2023[150] - Tommy Hilfiger North America segment revenue for the thirteen weeks ended 11/3/24 was $349.8 million, down from $359.2 million in the same period in 2023[150] - Calvin Klein North America segment revenue for the thirteen weeks ended 11/3/24 was $341.8 million, down from $375.5 million in the same period in 2023[150] - Calvin Klein International segment revenue for the thirteen weeks ended 11/3/24 was $652.1 million, up from $646.7 million in the same period in 2023[150] - Heritage Brands Wholesale segment revenue for the thirteen weeks ended 11/3/24 was $60.3 million, down from $130.8 million in the same period in 2023[150] - Total net sales for the thirteen weeks ended 11/3/24 were $2,131.0 million, down from $2,225.8 million in the same period in 2023[150] - Wholesale net sales for the thirteen weeks ended November 3, 2024 were $1,203.1 million, down 7.6% from $1,301.6 million in the same period in 2023[152] - Owned and operated retail stores generated $760.0 million in revenue for the thirteen weeks ended November 3, 2024, a slight increase from $754.7 million in the same period in 2023[152] Income Before Interest and Taxes - Income before interest and taxes for the thirteen weeks ended November 3, 2024 was $183.1 million, compared to $229.8 million in the same period in 2023, a decrease of 20.3%[153] - Tommy Hilfiger International segment income before interest and taxes for the thirteen weeks ended November 3, 2024 was $58.0 million, down 36.1% from $90.8 million in the same period in 2023[153] - Calvin Klein International segment income before interest and taxes for the thirteen weeks ended November 3, 2024 was $84.5 million, down 11.0% from $94.9 million in the same period in 2023[153] Deferred Revenue and Contractual Obligations - Contractual minimum fees from license agreements not yet satisfied total $647.6 million, with $62.9 million expected to be recognized in 2024, $236.8 million in 2025, and $347.9 million thereafter[33] - Deferred revenue recognized during the thirteen weeks ended November 3, 2024, was $2.6 million, compared to $4.0 million for the same period in 2023[35] - Long-term deferred revenue liabilities were $7.4 million as of November 3, 2024, down from $9.4 million as of February 4, 2024[36] - Deferred revenue balance at the end of the thirty-nine weeks ended November 3, 2024, was $46.7 million, down from $48.4 million for the same period in 2023[39] Pension Plans and Employee Benefits - The company has two noncontributory qualified defined benefit pension plans covering substantially all employees resident in the United States hired prior to January 1, 2022, with benefits based on career average compensation and years of credited service[51] - The company's Pension Plans and supplemental pension plan will freeze pensionable compensation and credited service amounts effective June 30, 2024, except for employees near retirement age who meet a specified service requirement[51] - The total net benefit cost for the Pension Plans was $0.9 million for the thirteen weeks ended November 3, 2024, and $5.7 million for the thirty-nine weeks ended November 3, 2024[53] - The total net benefit cost for the SERP Plans was $0.7 million for the thirteen weeks ended November 3, 2024, and $2.4 million for the thirty-nine weeks ended November 3, 2024[54] Long-Term Debt and Financing - The company's long-term debt carrying amount was $2,165.3 million as of November 3, 2024, with a current portion of $511.1 million[61] - The company's mandatory long-term debt repayments for the remainder of 2024 through 2029 total $2,175.3 million, with $511.9 million due in 2025 and $1,079.7 million due in 2027[62] - Approximately 80% of the company's long-term debt had fixed interest rates as of November 3, 2024[63] - The company made payments totaling $9.0 million on its term loan under the 2022 facilities during the thirty-nine weeks ended November 3, 2024[66] - The company issued €525.0 million principal amount of 4 1/8% senior notes due July 16, 2029, with €5.4 million in fees paid in connection with the issuance[73] - The company had $84.9 million of standby letters of credit and bank guarantees outstanding as of November 3, 2024[77] Income Tax Rates - The effective income tax rate for the thirteen weeks ended November 3, 2024 was 21.0%, down from 22.2% in the prior year period, primarily due to a change in the mix of international and domestic earnings[78] - The effective income tax rate for the thirty-nine weeks ended November 3, 2024 was 13.3%, down from 22.3% in the prior year period, primarily due to a favorable change in uncertain tax positions and a change in the mix of international and domestic earnings[79] Fair Value Measurements - The company uses a three-level hierarchy to measure fair value, with Level 1 being unadjusted quoted prices in active markets, Level 2 being observable inputs, and Level 3 being unobservable inputs[98][99][100] - Total assets as of November 3, 2024, were $56.5 million, with foreign currency forward contracts valued at $14.2 million and cross-currency swap contracts at $15.6 million[101] - The company's rabbi trust assets were valued at $13.8 million as of November 3, 2024, with corresponding deferred compensation liabilities included in accrued expenses[104] - The fair value of long-term debt as of November 3, 2024, was $2,176.5 million, compared to a carrying amount of $2,165.3 million[107] Cost Savings and Restructuring - The company expects to generate annual cost savings of $200 million to $300 million by 2026 through its Growth Driver 5 Actions, with $27.5 million in pre-tax severance and termination costs incurred during the thirty-nine weeks ended November 3, 2024[130][131] - A pre-tax gain of $9.5 million was recorded from the sale of a warehouse and distribution center during the thirty-nine weeks ended November 3, 2024[132] - The 2022 cost savings initiative resulted in annual cost savings of over $100 million, with $81.5 million in pre-tax severance and termination costs incurred during 2022 and 2023[134][136] - Severance, termination benefits, and other employee costs liability decreased from $20.4 million to $4.1 million during the thirty-nine weeks ended 11/3/24[138] Business Divestitures and Acquisitions - The Company completed the sale of its women's intimates businesses under the Warner's, Olga, and True&Co. trademarks to Basic Resources on November 27, 2023[20] - The company sold its women's intimates businesses for $160.0 million, resulting in a gain of $15.3 million in Q4 2023 and an additional $10.0 million gain in Q1 2024[41][42] Impairment Testing - Goodwill impairment test for 2024 showed no impairment, with the Tommy Hilfiger International reporting unit's fair value exceeding its carrying amount by approximately 10%[48][49] - The indefinite-lived intangible asset with the least excess fair value exceeded its carrying amount by 19% in the 2024 impairment test[50] Supply Chain and Logistics - Shipping delays due to attacks in the Red Sea and potential port strikes could increase freight costs and impact inventory and sales volume[28][30] - Attacks on commercial shipping vessels in the Red Sea have led to supply chain disruptions, but did not materially impact the company's business in 2023 or the first nine months of 2024[28] - A brief port strike on the East and Gulf Coasts of the United States in October 2024 did not materially impact the company's business in Q3 2024, but a resumption could lead to shipping delays and increased freight costs[30] Trade Receivables and Credit Losses - Trade receivables, net as of November 3, 2024, were $979.7 million, compared to $793.3 million as of February 4, 2024, and $1,045.4 million as of October 29, 2023[12] - The allowance for credit losses on trade receivables was $46.6 million as of November 3, 2024, compared to $43.9 million as of October 29, 2023[168] - Suppliers had elected to sell $422.9 million of the company's payment obligations through the supply chain finance program as of November 3, 2024, compared to $348.3 million as of October 29, 2023[170] Warehousing and Distribution - Warehousing and distribution expenses for the thirteen weeks ended November 3, 2024 totaled $84.2 million, a decrease of 5.1% from $88.7 million in the same period in 2023[167] Employee Agreements and Compensation - The company incurred $50.7 million in costs related to an amendment to Mr. Tommy Hilfiger's employment agreement, which was included in the Tommy Hilfiger North America and International segments[156] Share Repurchases and Dividends - The company repurchased 2.4 million shares for $254.2 million (excluding $2.2 million excise taxes) during the thirty-nine weeks ended November 3, 2024, with $2.019 billion remaining in the stock repurchase program[126] - Dividends declared were $2.4 million, $2.4 million, and $2.3 million for the respective periods[16] - Dividends declared were $0.0375 per common share for the thirty-nine weeks ended October 29, 2023[16] International Operations and Geopolitical Risks - The company exited its Russia business in Q2 2022, with less than 1% of 2024 revenue expected from Ukraine[31] - Less than 1% of the company's revenue in 2024 is expected to be generated in Israel, and less than 2% in the Middle East, including Israel[27] - The Israel-Hamas war and the war in Ukraine did not have a material impact on the company's business in 2023 and are not expected to in 2024[27][31] Financial Reporting and Accounting Policies - The company's fiscal years are based on 52-53 week periods ending on the Sunday closest to February 1, designated by the calendar year in which the fiscal year commences[22] - The company's consolidated financial statements are prepared in conformity with U.S. GAAP, requiring management to make estimates and assumptions that could materially differ from actual results[24] Non-Financial Assets and Impairments - The company's non-financial assets, including goodwill and property, plant, and equipment, are not required to be measured at fair value on a recurring basis, and no impairments were recorded during the thirty-nine weeks ended November 3, 2024[106]

PVH Corp. (NYSE:PVH) Q3 2024 Earnings Conference Call December 5, 2024 9:00 AM ET Company Participants Sheryl Freeman - Senior Vice President, Investor Relations Stefan Larsson - Chief Executive Officer Zac Coughlin - Chief Financial Officer Conference Call Participants Matthew Boss - J.P. Morgan Michael Binetti - Evercore ISI Jay Sole - UBS Bob Drbul - Guggenheim Ike Boruchow - Wells Fargo Operator Good morning, everyone, and welcome to today's PVH Third Quarter 2024 Earnings Conference Call. At this time, ...

PVH Corporation (PVH) reported better-than-expected results in the third quarter of fiscal 2024, wherein both earnings and revenues topped the Zacks Consensus Estimate. The bottom line improved while the top line fell year over year. Results gained from the strong execution of the PVH+ Plan, which led to robust gross margin expansion and growth in adjusted earnings per share (EPS).However, shares of this apparel designer lost more than 6% in after-hours trading yesterday. This is likely to have been due to ...