PVH Corp. (NYSE:PVH) is one of the best luxury stocks to buy now. PVH Corp. (NYSE:PVH) announced on February 4 that its Executive Committee of the Board of Directors declared a quarterly cash dividend of $0.0375 per share, payable on March 25, 2026, to stockholders of record on March 4, 2026. Jim Cramer Says PVH Corp. (PVH) “Had a Great Quarter — That’s Ridiculous” In a separate development, PVH Corp. (NYSE:PVH) reported a collaboration with OpenAI on January 27, announcing a combination of OpenAI’s capa ...

Financial Data and Key Metrics Changes - The company is experiencing a mid-single-digit sales decline in Q3, primarily driven by the Consumer Beauty segment, which is still in a phase of addressing operational gaps [40][39] - Gross margin for Q2 was lower than expected, with a contraction of 200-300 basis points attributed to high promotional activity, tariffs, and foreign exchange impacts [44][46] Business Line Data and Key Metrics Changes - The Consumer Beauty segment is underperforming, with a focus on streamlining the portfolio and improving sell-out growth [5][9] - The Prestige division is seeing a sequential recovery, with improved synchronization between sell-in and sell-out, although challenges remain in the U.S. market [41][42] Market Data and Key Metrics Changes - The company has reported over 30% sales growth in its Prestige portfolio on Amazon, indicating a successful strategy in new channels [14] - The promotional environment has intensified, with competitors increasing markdowns, which is expected to continue into Q3 [60] Company Strategy and Development Direction - The company is focusing on its most iconic brands and streamlining its product offerings to drive market share growth [5][13] - There is a clear emphasis on improving operational discipline and aligning marketing efforts with consumer needs to enhance sell-out performance [31][69] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that recent financial performance has not met expectations and emphasizes a commitment to transparency and focused execution moving forward [69] - The company is optimistic about future improvements, with plans for sharper priorities and resource allocation to key areas [69] Other Important Information - The company is investing in AI to enhance marketing asset creation efficiency, potentially reducing costs by 70%-80% [8] - There are significant growth opportunities identified in brands like Hugo Boss and Marc Jacobs, with new initiatives planned for the coming years [20][21] Q&A Session Summary Question: Future performance improvement plan for Consumer Beauty - Management is focusing on iconic brands and streamlining product offerings to improve sales and market share [5][9] Question: Changes in channel strategy - The company is investing heavily in online and e-commerce channels while maintaining focus on traditional retail [17] Question: Managing business after Gucci license ends - The company plans to drive growth in existing big brand franchises and explore new initiatives to compensate for the Gucci exit [20][22] Question: Impact of SKU rationalization on top line and gross margin - SKU rationalization is expected to improve productivity and gross margin over time, with a focus on driving top line growth [67] Question: Promotional environment and its impact - The promotional environment is expected to remain challenging, but the company is confident in its innovation and market strategies to mitigate these effects [60][61]

Financial Data and Key Metrics Changes - The company is experiencing a mid-single-digit sales decline in Q3, primarily driven by the Consumer Beauty segment, which is still in a phase of addressing operational gaps [34][38] - Gross margin for Q2 was lower than expected, with a contraction of 200-300 basis points attributed to high promotional activity, tariffs, and foreign exchange impacts [44][46] Business Line Data and Key Metrics Changes - Consumer Beauty is underperforming, with significant declines in iconic brands like COVERGIRL, although recent initiatives have shown early signs of improvement [5][40] - The Prestige division is seeing a sequential recovery, with improved synchronization between sell-in and sell-out, although challenges remain in the U.S. market [41][46] Market Data and Key Metrics Changes - The company has reported over 30% sales growth in its prestige portfolio on Amazon, indicating a successful adaptation to changing consumer purchasing behaviors [14][15] - The promotional environment has intensified, with competitors increasing markdowns, which is expected to continue into Q3 [59][60] Company Strategy and Development Direction - The company is focusing on streamlining its portfolio by prioritizing iconic brands and reducing SKU proliferation to enhance market share and sell-out growth [5][13] - Future initiatives include launching sharper, more focused product bundles and leveraging AI for cost-effective asset creation [8][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that recent financial performance has not met expectations and emphasizes a commitment to transparency and disciplined execution moving forward [69] - There is confidence that the changes being implemented will lead to improved performance over time, although it will not happen overnight [69] Other Important Information - The company is actively investing in new channels such as TikTok and e-commerce to capture emerging consumer segments, particularly Gen Z [17][62] - The exit from the Gucci license in 2028 is prompting the company to focus on building its existing brand franchises and exploring new growth opportunities [20][22] Q&A Session Summary Question: Future performance improvement plan for Consumer Beauty - Management is focusing on iconic brands and streamlining product offerings to improve sales and market share, with expected benefits materializing in fiscal 2027 [4][9] Question: Changes in channel strategy - The company is investing heavily in online and e-commerce channels while also protecting existing retail channels to cater to diverse consumer demographics [17][19] Question: Managing business after Gucci license ends - The company plans to drive growth in existing franchises and explore new brand opportunities while adjusting cost structures as needed [20][22] Question: Impact of SKU rationalization on top line and gross margin - SKU rationalization is expected to improve operational efficiency and gross margins over time, with a focus on driving top line growth as a priority [66][67]

Financial Data and Key Metrics Changes - The company reported a mid-single-digit sales decline expected in Q3, primarily driven by the Consumer Beauty segment, which has been underperforming [33][36] - Gross margin contraction of 200-300 basis points was noted, influenced by input cost inflation, promotional activities, and geographic mix [42][45] Business Line Data and Key Metrics Changes - Consumer Beauty is significantly below corporate average margins, with a focus on iconic brands like COVERGIRL and Rimmel to drive sell-out growth [4][8] - The Prestige division is experiencing a sequential recovery, with improved synchronization between sell-in and sell-out, although challenges remain [38][39] Market Data and Key Metrics Changes - The company has seen over 30% sales growth on Amazon for its prestige portfolio, indicating a successful adaptation to changing consumer purchasing behaviors [12][13] - The promotional environment has intensified, with competitors increasing markdowns, impacting gross margins [58][60] Company Strategy and Development Direction - The company is focusing on streamlining its portfolio by prioritizing key brands and reducing SKU proliferation to enhance market performance [4][12] - There is a clear emphasis on leveraging new channels like TikTok and e-commerce to reach consumers effectively while maintaining presence in traditional retail [15][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent financial performance has not met expectations, emphasizing a commitment to transparency and disciplined execution moving forward [70] - The company is optimistic about future improvements, with plans for sharper priorities and focused execution to drive growth [70] Other Important Information - The company is investing in AI to enhance asset creation efficiency, potentially reducing costs by 70-80% [6] - Upcoming product launches, including a significant Calvin Klein initiative and a Marc Jacobs beauty line, are expected to drive growth [55] Q&A Session Summary Question: Future performance improvement plan for Consumer Beauty - Management highlighted a focus on iconic brands and streamlined innovation bundles to improve sales and market share [4][8] Question: Impact of SKU rationalization on top line and gross margin - Management indicated that SKU rationalization will positively impact gross margin over time, with a focus on driving top line growth [66][68] Question: Changes in channel strategy - The company is investing in online and e-commerce channels while ensuring traditional retail channels remain strong [15][60] Question: Promotional environment and its impact - Management noted that increased promotional activity from competitors is expected to continue into Q3, affecting gross margins [58][60] Question: Assessment of internal controls and operational discipline - Management acknowledged the need for improved operational discipline and is investing in data analytics to enhance decision-making [29][31]

Core Viewpoint - PVH Corp. has declared a quarterly cash dividend of $0.0375 per share, payable on March 25, 2026, to stockholders of record on March 4, 2026 [1] Company Overview - PVH Corp. is one of the largest fashion companies globally, driven by its iconic brands, Calvin Klein and TOMMY HILFIGER [1] - The company has been connecting with and inspiring consumers for over 140 years and operates in more than 40 countries [1]

Group 1: Institutional Investment Activity - Vaughan Nelson Investment Management L.P. acquired a new stake in PVH valued at approximately $74.34 million in Q3 [1] - Federated Hermes Inc. increased its holdings in PVH by 9.0% in Q2, now owning 281,149 shares worth $19.29 million after acquiring an additional 23,203 shares [1] - Truist Financial Corp grew its stake in PVH by 57.3% in Q2, now holding 10,978 shares valued at $753,000 after acquiring an additional 3,997 shares [1] - Pzena Investment Management LLC increased its holdings by 4.0% in Q2, now owning 6,407,637 shares valued at $439.56 million after acquiring an additional 246,070 shares [1] - Capricorn Fund Managers Ltd acquired a new position in PVH worth approximately $3.43 million in Q2 [1] - 97.25% of PVH's stock is owned by institutional investors [1] Group 2: Financial Performance - PVH reported earnings per share (EPS) of $2.83 for the last quarter, beating the consensus estimate of $2.56 by $0.27 [3] - The company had revenue of $2.29 billion during the quarter, slightly above analyst estimates of $2.28 billion [3] - PVH's quarterly revenue increased by 1.7% year-over-year [3] - The company set Q4 2025 EPS guidance at 3.200-3.350 and FY 2025 guidance at 10.850-11.000 [3] - Analysts anticipate PVH will post an EPS of 11.67 for the current fiscal year [3] Group 3: Stock Performance and Valuation - PVH shares opened at $62.37, with a market cap of $2.86 billion [2] - The company has a P/E ratio of 9.35 and a P/E/G ratio of 2.21 [2] - PVH's 52-week low is $59.28 and the high is $92.60 [2] - The stock has a quick ratio of 0.72, a current ratio of 1.47, and a debt-to-equity ratio of 0.46 [2] - The 50-day simple moving average is $70.69 and the 200-day simple moving average is $76.61 [2] Group 4: Analyst Ratings - Weiss Ratings restated a "hold" rating on PVH [4] - Telsey Advisory Group reissued an "outperform" rating with a price target of $95.00 [4] - Citigroup lowered its price target from $83.00 to $80.00, maintaining a "neutral" rating [4] - BTIG Research restated a "buy" rating with a target price of $100.00 [4] - Guggenheim assumed coverage with a "neutral" rating [4] - The average rating for PVH is "Hold" with a consensus price target of $91.60 [4] Group 5: Company Overview - PVH Corp is a leading global apparel company known for its portfolio of iconic brands including Calvin Klein and Tommy Hilfiger [5] - The company designs, markets, and distributes clothing, accessories, and fragrances under both owned and licensed brands [5] - PVH's operations span the entire value chain from product design and development to manufacturing, marketing, and distribution [6]

Institutional Holdings - Several institutional investors have recently modified their holdings in PVH, with BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquiring a new position valued at $38,000 [1] - Hantz Financial Services Inc. increased its holdings by 1,284.4%, now owning 623 shares valued at $43,000 after acquiring an additional 578 shares [1] - Mirae Asset Global Investments Co. Ltd. grew its holdings by 45.6%, now owning 907 shares worth $62,000 after purchasing an additional 284 shares [1] - Blue Trust Inc. increased its stake by 41.2%, now owning 952 shares valued at $65,000 after acquiring an additional 278 shares [1] - Fifth Third Bancorp grew its stake by 28.9%, now owning 1,061 shares worth $73,000 after purchasing an additional 238 shares [1] - Institutional investors currently own 97.25% of PVH's stock [1] Stock Performance - PVH opened at $62.37, with a 1-year low of $59.28 and a 1-year high of $92.60 [2] - The company has a market cap of $2.86 billion, a P/E ratio of 9.35, and a PEG ratio of 2.21 [2] - PVH has a debt-to-equity ratio of 0.46, a current ratio of 1.47, and a quick ratio of 0.72 [2] - The 50-day simple moving average is $70.69, and the 200-day simple moving average is $76.61 [2] Earnings Report - PVH reported $2.83 earnings per share for the last quarter, exceeding analysts' estimates of $2.56 by $0.27 [3] - The firm had revenue of $2.29 billion, slightly above analyst estimates of $2.28 billion [3] - The company's quarterly revenue increased by 1.7% compared to the same quarter last year [3] - PVH's return on equity was 11.44%, and the net margin was 3.87% [3] - Guidance for Q4 2025 is set at 3.200-3.350 EPS, and FY 2025 guidance is 10.850-11.000 EPS [3] - Analysts forecast PVH will post 11.67 earnings per share for the current fiscal year [3] Analyst Ratings - Wells Fargo & Company reduced their target price on PVH from $88.00 to $85.00, maintaining an "equal weight" rating [4] - Needham & Company LLC reiterated a "buy" rating with a target price of $100.00 [4] - Telsey Advisory Group reaffirmed an "outperform" rating with a target price of $95.00 [4] - JPMorgan Chase & Co. raised their price target from $82.00 to $83.00, giving a "neutral" rating [4] - Eight analysts rated the stock as a Buy, while nine issued a Hold rating, with an average target price of $91.60 [4] Company Profile - PVH Corp is a leading global apparel company known for its portfolio of iconic brands, including Calvin Klein and Tommy Hilfiger [5] - The company designs, markets, and distributes clothing, accessories, and fragrances under both owned and licensed brands [5] - PVH's operations span the entire value chain from product design and development to manufacturing, marketing, and distribution [7]

Core Insights - PVH Corporation is benefiting from the effective execution of its PVH+ Plan, which focuses on enhancing growth by leveraging its core strengths and connecting its brands, Calvin Klein and TOMMY HILFIGER, with consumers [1] Group 1: Collaboration with OpenAI - The company has announced a partnership with OpenAI to integrate advanced AI capabilities into its operations, supporting its multi-year PVH+ growth strategy [2] - Through this collaboration, PVH will co-develop custom AI capabilities that will enhance product design, demand planning, inventory optimization, and consumer engagement [3] - The integration of OpenAI enterprise APIs will modernize workflows across product, marketing, supply chain, and retail functions, including the use of ChatGPT Enterprise [4] Group 2: Direct-to-Consumer and Digital Channels - PVH is making strides in strengthening its direct-to-consumer (DTC) and digital channels, which are central to its PVH+ Plan [5] - Both Calvin Klein and TOMMY HILFIGER are gaining traction online through innovative product campaigns and global talent collaborations, leading to increased traffic, new customer acquisition, and improved repeat purchasing [5] Group 3: Stock Performance - PVH's shares have decreased by 22.5% over the past three months, contrasting with a 6.4% growth in the industry [6]

Core Thesis - PVH Corp represents a classic value opportunity in a market focused on software and AI, undergoing a strategic transformation through its multi-year PVH+ Plan aimed at improving efficiency and growth in higher-margin channels [2][5] Financial Performance - As of January 27th, PVH's share price was $62.36, with trailing and forward P/E ratios of 9.48 and 4.90 respectively [1] - The current market skepticism has left PVH shares trading in the low $60s, suggesting a deeply discounted valuation of approximately 7x forward earnings [4] Strategic Initiatives - The divestment of the lower-margin Heritage Brands business has allowed PVH to focus on being a pure-play lifestyle brand operator, reallocating capital towards brand investment and e-commerce capabilities [3] - The PVH+ strategy is expected to improve profitability and cash flow over time, supported by a strengthened balance sheet and disciplined inventory management [5] Market Position and Growth Potential - Despite challenges in the European retail market, Calvin Klein and Tommy Hilfiger have shown resilience in the Americas and Asia-Pacific, with China identified as a significant long-term growth opportunity [3] - The company has a $5 billion share repurchase authorization and offers a favorable risk-reward profile, combining income generation with the potential for capital appreciation [4][5]

Core Insights - PVH Corp. has announced a collaboration with OpenAI to integrate AI technology into its operations, enhancing brand strength for Calvin Klein and TOMMY HILFIGER [1] Group 1: Collaboration and Strategy - The partnership aims to leverage OpenAI's capabilities to fuel innovation and unlock new opportunities across PVH's global operations [1] - This initiative is part of PVH's multi-year brand-building growth strategy known as the PVH+ Plan [1]