PVH Reports Strong Q2 Earnings Despite Sales Decline
PVH Corp., parent company of Tommy Hilfiger and Calvin Klein, reported second-quarter earnings that exceeded Wall Street expectations despite a sales decline. The stock rose slightly to $72.46 on Thursday but remains under scrutiny due to macroeconomic headwinds affecting its wholesale business in Europe. Analysts remain optimistic about PVH's long-term prospects, citing the company’s brand strength and strategic initiatives like the PVH+ plan. UBS analyst Jay Sole highlighted strong performance from key categories such as Calvin Klein underwear and denim, along with improved gross margins excluding tariff refunds. He set a $121 price target for the stock. Needham's Tom Nikic noted that while volatility remains higher than in other apparel brands like Ralph Lauren or Levi Strauss & Co., PVH’s low P/E ratio of 6 suggests undervaluation and favorable risk-reward potential if regional trends improve.
Topics: analyst report Calvin Klein PVH Q2 earnings Tommy Hilfiger