Core Insights - PVH Corporation is expected to report a year-over-year decline in earnings for Q2 fiscal 2025, with revenues projected at $2.1 billion, reflecting a growth of 1.3% from the previous year, while earnings per share (EPS) are estimated to decline by 34.6% to $1.97 [1][10] Group 1: Earnings Performance - The Zacks Consensus Estimate for PVH's Q2 earnings has remained unchanged at $1.97 per share over the past 30 days, indicating a significant decline compared to the previous year [1] - In the last reported quarter, PVH delivered an earnings surprise of 2.7%, with an average trailing four-quarter earnings surprise of 13.5% [2] Group 2: Market Challenges - PVH is facing a challenging operating environment, particularly in the Asia-Pacific region and China, where macroeconomic headwinds are negatively impacting consumer sentiment [3][4] - The company is experiencing pressure on gross margins due to a more promotional retail environment, higher raw material costs, and currency headwinds, which are expected to affect profitability [5][6] Group 3: Strategic Initiatives - Despite the challenges, PVH's diversified brand portfolio positions it to achieve above-average industry growth, supported by effective marketing strategies and financial control [7] - The PVH+ Plan aims to accelerate growth by enhancing core strengths and connecting key brands with consumers, which may provide some cushion to quarterly performance [8] Group 4: Valuation and Market Performance - PVH shares are trading at a forward 12-month price-to-earnings ratio of 6.74X, below the five-year median of 8.6X and the industry average of 11.03X, indicating an attractive valuation opportunity [12] - Over the past three months, PVH's shares have declined by 8.9%, compared to a 16.4% decline in the industry [13]

Core Viewpoint - Analysts project that PVH will report quarterly earnings of $1.97 per share, reflecting a year-over-year decline of 34.6%, with revenues expected to reach $2.1 billion, an increase of 1.3% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised downward by 1.7% in the past 30 days, indicating a reassessment by covering analysts [2] - The projected revenue for Tommy Hilfiger is estimated at $1.12 billion, suggesting a year-over-year increase of 2.1% [4] - Total Calvin Klein revenue is expected to reach $920.13 million, indicating a year-over-year decline of 1.1% [5] - Heritage Brands revenue is projected at $65.19 million, reflecting a significant year-over-year increase of 28.8% [5] Group 2: Market Performance and Analyst Insights - Over the past month, PVH shares have declined by 2%, while the Zacks S&P 500 composite has increased by 1.7% [5] - The relationship between earnings estimate revisions and short-term stock price performance is emphasized, suggesting that these revisions are critical for predicting investor behavior [3] - PVH holds a Zacks Rank 3 (Hold), indicating that its performance is expected to align with the overall market in the near term [5]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for PVH despite an increase in revenues when the company reports its quarterly results for the period ending July 2025 [1][3]. Earnings Expectations - PVH is expected to report earnings of $1.97 per share, reflecting a decline of 34.6% year-over-year, while revenues are projected to be $2.1 billion, an increase of 1.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.66% over the last 30 days, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for PVH is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.12%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, PVH exceeded the expected earnings of $2.24 per share by delivering $2.30, resulting in a surprise of +2.68%. Over the last four quarters, the company has consistently beaten consensus EPS estimates [13][14]. Investment Considerations - Despite the historical ability to beat estimates, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a positive earnings surprise for PVH [12][17].

Core Viewpoint - PVH shares have increased by approximately 9.3% over the past month, outperforming the S&P 500, but there are concerns about potential pullbacks leading up to the next earnings release [1] Estimates Movement - Estimates for PVH have trended downward over the past month, with the consensus estimate shifting down by 23.15% [2] VGM Scores - PVH has a Growth Score of D and a Momentum Score of F, but it received an A for Value, placing it in the top quintile for this investment strategy. The overall aggregate VGM Score for PVH is C [3] Outlook - The downward trend in estimates indicates a negative outlook for PVH, reflected in its Zacks Rank of 5 (Strong Sell), suggesting below-average returns in the coming months [4] Industry Performance - PVH is part of the Zacks Textile - Apparel industry, where Ralph Lauren has seen a 1.7% increase in shares over the past month. Ralph Lauren reported revenues of $1.7 billion for the last quarter, marking an 8.3% year-over-year increase [5] - For the current quarter, Ralph Lauren is expected to report earnings of $3.40 per share, reflecting a 25.9% increase from the previous year, with a slight estimate change of -0.6% over the last 30 days. Ralph Lauren holds a Zacks Rank of 3 (Hold) [6]

Core Insights - Ralph Lauren Corporation (RL) and PVH Corporation (PVH) are significant players in the Textile-Apparel industry, each with unique strategies and brand identities [1][2] - Both companies are adapting to evolving global consumer demands through digital innovation, supply chain agility, and direct-to-consumer expansion [2][3] Ralph Lauren (RL) Overview - Ralph Lauren is focusing on brand elevation, geographic diversification, and personalized promotions to support growth and cost management [4][5] - The company anticipates low-single-digit revenue growth in constant currency for fiscal 2026, with stronger momentum expected in the first half [6] - Gross margin is projected to remain flat, with AUR growth and lower cotton costs offsetting headwinds from higher tariffs [7] - RL's fiscal 2026 sales and EPS are expected to grow by 3.5% and 10.9% year-over-year, respectively [13] PVH Overview - PVH holds a dominant position in the premium and lifestyle apparel industry, with a diversified business model that includes direct-to-consumer, wholesale, and licensing [8][9] - The company is advancing its PVH+ Plan, focusing on brand elevation, digital acceleration, and operational efficiency, but faces macro pressures and shipment delays [10][12] - PVH's fiscal 2025 sales are projected to grow by 1.4%, while EPS is expected to decline by 5.9% [16] Stock Performance and Valuation - RL is trading at a forward price-to-earnings multiple of 18.65X, significantly higher than the industry average of 11.22X, while PVH trades at a multiple of 5.55 [18] - Ralph Lauren's stock has gained 18.2% in the past three months, outperforming PVH and the broader industry [21] - Despite PVH's strong brand portfolio, its discounted valuation may reflect limited near-term visibility amid ongoing macroeconomic headwinds [19] Conclusion - RL is positioned as a stronger contender in 2025 due to consistent strategic execution, strong brand equity, and a promising financial outlook [22] - For investors seeking stability and consistent growth, RL presents a compelling investment opportunity [25]

Group 1 - The investment approach focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities [1] - The analysis is based on bottom-up evaluation, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The goal is to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - The impact of tariffs on U.S. gross margins is significant but not catastrophic for the company [1] - The primary challenge for the company lies in execution, specifically in maintaining brand relevance and product momentum [1] - The investment approach focuses on operational aspects and long-term earnings power rather than market-driven dynamics [1] Group 2 - The company is evaluated from a long-only investment perspective, emphasizing buy-and-hold strategies [1] - A small fraction of companies are considered a buy at any given time, with most recommendations being holds [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a bullish market [1]

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]