Core Viewpoint - PVH's stock has dropped nearly 20% after lowering its full-year guidance despite exceeding Q1 expectations, raising questions about potential investment opportunities in the premium retailer's stock [1][3]. Group 1: Company Overview - PVH, formerly known as Phillips-Van Heusen Corporation, operates iconic fashion brands like Tommy Hilfiger and Calvin Klein, specializing in a wide range of apparel and accessories sold globally [2]. - The company has consistently surpassed earnings expectations, achieving a Q1 EPS of $2.30, exceeding the expected $2.24, although this represents a 6% decline from the previous year's $2.45 [5][6]. Group 2: Financial Performance - PVH reported Q1 sales of $1.98 billion, surpassing estimates of $1.93 billion and showing an increase from $1.95 billion in the prior period [6]. - The company has maintained an average earnings surprise of 13.47% and a sales surprise of 1.38% over the last four quarters [6]. Group 3: Guidance and Projections - PVH has lowered its EPS guidance for fiscal 2026 to between $10.75 and $11.00, down from a previous range of $12.40 to $12.75, and below the current Zacks Consensus of $12.59 [8][9]. - Despite the lowered guidance, Zacks projects a 13% increase in annual earnings for FY27 to $14.21, although EPS estimates may trend lower following the recent guidance [9]. Group 4: Valuation Metrics - PVH's stock is currently valued at 6.4X forward earnings, significantly lower than the Zacks Textile-Apparel Industry average of 13.3X, indicating a potential buying opportunity for long-term investors [11]. - The company's PEG ratio stands at 0.57, suggesting it is undervalued relative to its growth rate, and it trades at less than 1X forward sales [12]. Group 5: Investment Considerations - Following the Q1 report, PVH stock holds a Zacks Rank 3 (Hold), with potential for a rebound, but investors should monitor earnings estimate revisions closely [16]. - A decline in FY26 EPS estimates is anticipated, and a significant drop in FY27 estimates could indicate further downside risk [16][17].

Core Viewpoint - PVH Corp. has lowered its FY25 guidance and second-quarter adjusted EPS guidance, leading to a decline in share price despite beating quarterly earnings and revenue estimates [1][2]. Financial Performance - PVH reported quarterly earnings of $2.30 per share, exceeding the analyst consensus estimate of $2.25, and quarterly revenue of $1.98 billion, surpassing the Street estimate of $1.93 billion [1]. - The company has revised its fiscal 2026 adjusted EPS guidance from a range of $12.40 to $12.75 down to $10.75 to $11, compared to the analyst estimate of $12.52 [2]. Analyst Insights - Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating with a $90 price target, noting that while PVH posted a first-quarter beat, its operating margin fell short due to gross margin pressures [2][3]. - Needham analyst Tom Nikic reiterated a Buy rating with a $115 price target, suggesting that the guidance cut may exert selling pressure but believes the downward revision was largely priced in [4]. - Evercore ISI Group analyst Michael Binetti reaffirmed an Outperform rating while trimming the price forecast from $105 to $95 [6]. Market Reaction - PVH shares are down 16.71% at $67.35 following the announcement [6]. - Several analysts have adjusted their price targets and ratings post-results, with Wells Fargo cutting its forecast from $100 to $80 and BMO Capital lowering its forecast from $93 to $84 [5].

Core Viewpoint - PVH reported solid first-quarter earnings but lowered its full-year outlook, leading to a significant drop in its stock price by 17.7% [1][8] Financial Performance - Revenue increased by 2% to $1.98 billion, surpassing guidance which anticipated flat to a 2% decline, and exceeding estimates of $1.93 billion [3] - Revenue growth was 5% in the EMEA region and 7% in the Americas, while it fell by 13% in Asia-Pacific due to a challenging consumer environment in China [3] - Gross margin decreased from 61.4% to 58.6% due to a shift from direct-to-consumer to wholesale and a more promotional environment [4] - Adjusted earnings per share (EPS) fell from $2.45 to $2.30, beating the company's guidance of $2.10-$2.25 and consensus estimates of $2.25 [4] Impairments and Inventory - PVH recorded a $480 million goodwill impairment charge attributed to a significant increase in discount rates [5] - Inventory rose by 19%, as the company invested in core product inventory to enhance availability and support projected sales growth for the second quarter [5] Management Insights - CEO Stefan Larsson noted that the company capitalized on global consumer interest in Calvin Klein and Tommy Hilfiger, achieving revenue growth compared to the previous year and exceeding guidance [6] Future Outlook - Management acknowledged macroeconomic uncertainties impacting the business, leading to a second-quarter guidance that fell short of expectations [7] - For the current period, management anticipates low single-digit revenue growth but adjusted EPS to decline to $1.85-$2.00 from $3.01 in the same quarter last year [7] - Estimated tariffs are expected to negatively impact operating profit by $65 million, equating to a $1.05 per share reduction [7] Valuation - Despite the challenges, PVH is considered to offer attractive value with a price-to-earnings ratio of less than 7 [8]

Core Insights - PVH Corporation reported better-than-expected results for Q1 FY2025, with earnings and revenues exceeding the Zacks Consensus Estimate, although earnings declined year-over-year while revenues increased [1][2] Financial Performance - Adjusted earnings were $2.30 per share, down 6.1% from $2.45 in the prior year, surpassing the Zacks Consensus Estimate of $2.24 and the company's guidance of $2.10-$2.25 [2] - Revenues increased by 2% year-over-year to $1.984 billion, beating the consensus estimate of $1.936 billion [6] - Gross profit was $1.16 billion, a decrease of 3.2% year-over-year, with a gross margin contraction of 280 basis points to 58.6% [9] - Adjusted selling, general and administrative expenses remained nearly flat at $1 billion, while adjusted earnings before interest and taxes totaled $160.5 million, down 17.7% from the previous year [10] Segment Performance - EMEA revenues grew by 5% year-over-year, while Americas revenues increased by 7%, driven by wholesale growth [12][13] - APAC revenues fell by 13% due to a tough consumer environment, particularly in China [14] - Calvin Klein segment revenues were flat year-over-year, while Tommy Hilfiger revenues rose by 3% [15] Future Outlook - For Q2 FY2025, revenues are projected to rise low-single digits year-over-year, with adjusted EPS expected in the range of $1.85-$2, lower than $3.01 from the previous year [18][19] - For fiscal 2025, the company anticipates revenues to be flat to slightly up year-over-year, with adjusted operating margin expected to be around 8.5%, down from earlier guidance of flat to slightly up from 10% [20][21] Strategic Initiatives - PVH is focused on enhancing brand impact through solid product offerings and marketing campaigns, aiming to strengthen its key brands in the latter half of 2025 [3] - The company is committed to its multi-year cost savings plan, Growth Driver 5, to support growth in the second half of the fiscal year [3]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Group 1 - PVH Corp's stock has declined 16.3% to $67.68, marking its worst single-session drop since April 2024, primarily due to a reduction in fiscal second-quarter profit guidance attributed to higher tariffs, overshadowing better-than-expected first-quarter earnings and revenue [1] - Wells Fargo and BMO have reduced their price targets for PVH, with Wells Fargo lowering it from $93 to $84 and BMO from $100 to $80, although analysts remain generally bullish with nine out of 15 firms rating it as "buy" or better [2] - PVH has experienced a significant 36% loss year-to-date and over 44% decline in the last 12 months, with today's trading activity showing a notable increase in options volume, particularly in the June 80 call [3] Group 2 - The 12-month consensus target price for PVH is $98.23, indicating a 41.2% premium over current trading levels, suggesting potential upside despite recent declines [2] - The stock has struggled to break through the $90 level in May, which coincides with its 200-day moving average, indicating a resistance point [3] - Today's options activity reflects heightened interest, with 2,132 calls and 1,140 puts traded, significantly above typical volume, indicating potential market speculation [3]

Financial Data and Key Metrics Changes - Revenue increased by 2% above guidance, with non-GAAP EPS also exceeding expectations [5][32] - Total direct-to-consumer revenue decreased by approximately 3%, while e-commerce grew by 3% [5][36] - Wholesale revenue grew in the mid-single digits, benefiting from earlier shipments and the relaunch of Calvin Klein women's sportswear and jeans [5][6] Business Line Data and Key Metrics Changes - Calvin Klein's underwear and jeans categories saw a 25% increase in sales due to innovative product launches [8] - Fashion denim for Calvin Klein grew by 14% in Q1, indicating strong performance in innovative offerings [9] - Tommy Hilfiger also experienced growth through new seasonal collections and strategic marketing campaigns [10][11] Market Data and Key Metrics Changes - EMEA revenue increased mid-single digits, with direct-to-consumer growth turning positive [12][34] - Americas revenue rose by 7%, driven by high teens growth in wholesale [34] - Asia Pacific revenues declined low teens due to weaker consumer confidence and earlier Lunar New Year timing [16][35] Company Strategy and Development Direction - The company is focused on executing the PVH Plus plan to strengthen brand performance and consumer engagement [5][7] - Strategic initiatives include product innovation, enhanced marketing campaigns, and a focus on core strengths in Calvin Klein and Tommy Hilfiger [10][29] - The company is navigating a challenging macro environment while aiming to improve operational efficiencies and reduce costs [21][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tough macro environment but emphasized control over internal actions to drive performance [7][21] - The company is facing increased promotional levels and tariff impacts, particularly in the U.S. market [21][41] - Despite challenges, management remains optimistic about long-term growth and brand strength, particularly in key markets [22][46] Other Important Information - The company returned over $550 million to shareholders through share repurchases [32] - Inventory levels increased by 19% compared to the previous year, primarily due to strategic investments in core product categories [39] - A non-cash goodwill impairment charge of $480 million was recorded, reflecting increased discount rates [39] Q&A Session Summary Question: What gives confidence that Calvin and Tommy still have good momentum with consumers? - Management highlighted strong product innovation and marketing efforts that have driven significant growth in key categories despite macro challenges [56][57] Question: Can you elaborate on the cost-out efforts and their impact? - Management discussed ongoing operational improvements and cost-saving initiatives aimed at enhancing efficiency and profitability [65][70] Question: How are tariffs impacting the business and what mitigation strategies are in place? - Management outlined the expected $65 million impact from tariffs and discussed leveraging global sourcing relationships to mitigate costs [78][81]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 2% above guidance, with non-GAAP EPS also exceeding expectations [6][35] - Total direct-to-consumer revenue declined approximately 3%, while e-commerce revenue grew by 3% [6][39] - Gross margin decreased to 58.6%, down 280 basis points compared to the previous year [40][41] - EBIT for the quarter was $160 million, with an operating margin of 8.1% [41] Business Line Data and Key Metrics Changes - Calvin Klein's underwear and jeans categories saw a 25% increase in sales due to innovative product launches [9][60] - Tommy Hilfiger experienced a 3% revenue increase, driven by growth in EMEA and Americas [39] - Wholesale revenue increased by mid-single digits, benefiting from earlier shipments and the relaunch of Calvin Klein women's sportswear [6][15] Market Data and Key Metrics Changes - EMEA revenue grew by 4% in constant currency, with mid-single digit growth in wholesale [37] - Americas revenue increased by 7%, driven by high teens growth in wholesale [37] - Asia Pacific revenues declined by low teens on a reported basis, attributed to weaker consumer confidence [17][38] Company Strategy and Development Direction - The company is focused on executing the PVH Plus plan to strengthen brand performance and consumer engagement [6][33] - Plans to enhance product innovation and marketing efforts, particularly in Calvin Klein's underwear and denim categories [28][29] - The company is taking back licenses for Calvin Klein sportswear and jeans to improve brand control and execution [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment, with weakened consumer sentiment and increased promotional levels [22][47] - The company remains committed to long-term growth in China despite current challenges [23] - Full-year revenue guidance is reaffirmed as flat to slightly up, but EPS guidance has been adjusted down due to macro pressures [27][49] Other Important Information - The company returned over $550 million to shareholders through share repurchases [36] - Inventory levels increased by 19% compared to the previous year, primarily due to strategic investments in core product categories [42] Q&A Session Summary Question: What gives confidence that both brands still have good momentum with consumers? - Management highlighted strong product innovation and marketing efforts that have driven significant growth in key categories despite macro challenges [58][60] Question: Can you provide details on the cost-out efforts and their timing? - Management discussed ongoing operational improvements and cost-saving initiatives that are expected to deliver significant benefits in the second half of the year [66][75] Question: How are tariffs impacting the business and what mitigation strategies are in place? - The company identified a $65 million unmitigated impact from tariffs and is working on optimizing sourcing and production costs to mitigate this effect [78][81]

Group 1 - PVH Corp's shares have declined by approximately one-third over the past year due to weak consumer sentiment, pressures in China, and uneven performance in the US [1] - The company is facing significant challenges in the current market environment, impacting its overall performance and investor confidence [1]

Core Insights - PVH reported revenue of $1.98 billion for the quarter ended April 2025, reflecting a 1.6% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.94 billion by 2.49% [1] - The company's EPS was $2.30, down from $2.45 in the same quarter last year, but exceeded the consensus estimate of $2.24 by 2.68% [1] Revenue Breakdown - Tommy Hilfiger generated revenue of $1.05 billion, exceeding the average estimate of $1.02 billion by analysts, marking a year-over-year increase of 3.4% [4] - Total revenue for Calvin Klein was $886.10 million, slightly above the estimated $876.14 million, but showed a minor decline of 0.1% compared to the previous year [4] - Heritage Brands reported revenue of $49.40 million, surpassing the average estimate of $43.23 million, although this represented a year-over-year decrease of 4.6% [4] Stock Performance - PVH shares have returned 16.5% over the past month, outperforming the Zacks S&P 500 composite, which increased by 5.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]