Update shared on28 Aug 2025
Fair value Increased 6.11%PVH’s price target has been raised to $95.00, as stronger-than-expected Q2 sales and margin improvements outweighed concerns about promotional pressure, operational challenges, and cautious guidance, with bullish sentiment further supported by CEO insider buying and expectations for efficiency gains.
Analyst Commentary
- Stronger-than-expected Q2 sales and improved margins contributed to upward price target revisions, though some analysts view management’s guidance as conservative and the stock as undervalued.
- Bullish analysts highlight insider buying by PVH’s CEO as a sign of confidence, with expectations for cost efficiencies and licensing deals to drive accretion in coming years.
- Bearish analysts point to gross margin pressure from increased promotions, unfavorable channel mix, higher freight costs, and the impact of tariffs, leading to lower FY25 and FY26 EPS forecasts.
- Operational challenges are noted, particularly with Calvin Klein's platform issues and slowing trends in China, offset by modest sales resilience in the U.S. and Europe.
- Despite near-term margin headwinds and guidance cuts, some bullish analysts foresee longer-term EPS growth potential as PVH recovers margins and executes on efficiency initiatives.
What's in the News
- Barclays raised its price target for PVH Corp. to $101 from $83, maintaining an Overweight rating due to stronger Q2 sales and margins, while considering the company’s 2025 outlook conservative and shares undervalued (Barclays/periodical).
- PVH raised its full-year 2025 earnings guidance, now expecting revenue to increase low single digits, but continues to face a net negative tariff impact of $70 million on 2025 EBIT and cites significant uncertainty regarding future trade policies (Key Developments).
- For Q3 2025, PVH projects revenue to be flat or slightly up year-on-year, but expects a slight decrease on a constant currency basis (Key Developments).
- A new multi-year licensing agreement with Herman Kay-Mystic LLC will expand Calvin Klein and TOMMY HILFIGER outerwear in North America from Spring 2026, as PVH continues to leverage direct brand operations and select partnerships for scale and expertise (Key Developments).
- PVH recorded $479.5 million in goodwill and intangible asset impairments in Q1 2025 and concluded a share buyback program, having repurchased nearly 60% of shares under the plan since 2015, with no additional repurchases reported in the latest tranche (Key Developments).
Valuation Changes
Summary of Valuation Changes for PVH
- The Consensus Analyst Price Target has risen slightly from $91.21 to $95.00.
- The Net Profit Margin for PVH has risen slightly from 7.30% to 7.62%.
- The Discount Rate for PVH has risen slightly from 11.09% to 11.50%.
Disclaimer
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