PVH (PVH) Valuation: How Tariff Headwinds and Margin Pressures Shape the Investment Story

PVH (PVH) is navigating some tough terrain right now, as fresh developments around US tariffs and the end of duty-free status for Haitian garment exports are putting upward pressure on costs and margins. Investors are watching how these headwinds might affect the company’s bottom line, especially after PVH reaffirmed its earnings outlook with only a modest boost.

See our latest analysis for PVH.

PVH’s latest price action reflects investors weighing both recent operational wins at Calvin Klein and Tommy Hilfiger, as well as the ongoing pressure from higher tariffs. Despite steps forward on brand execution, its share price has drifted lower this year, with a year-to-date share price return of -20.4%. The long-term picture is steadier; PVH’s three-year total shareholder return sits at 79.4%, indicating resilience even as momentum cools in 2024.

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With shares trading at a noticeable discount to analyst targets, but margin pressures mounting, the question for investors is clear: is PVH now undervalued, or is the market correctly anticipating the company’s future growth trajectory?

Most Popular Narrative: 13.7% Undervalued

PVH closed at $83.52, while the most popular narrative suggests a fair value of $96.79. This creates an intriguing divide between current sentiment and narrative-driven expectations.

Strategic expansion, product innovation, and high-profile partnerships are revitalizing core brands, boosting global relevance, and driving long-term growth with younger consumers. Digital transformation, operational efficiency, and sustainability initiatives are strengthening margins, reducing traditional retail dependence, and aligning the company with evolving consumer and regulatory demands.

Read the complete narrative.

What’s boosting PVH’s valuation? The magic formula combines forecasts for earnings growth, margin expansion, and a future profit multiple that is not often seen in this sector. Ready to discover which bold projections fuel this fair value? Dive into the full narrative for the data that is stirring up Wall Street.

Result: Fair Value of $96.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff pressures and a heavy reliance on legacy brands could easily disrupt PVH’s long-term growth story if these issues are left unchecked.

Find out about the key risks to this PVH narrative.

Build Your Own PVH Narrative

If you want to dig into the numbers or shape your perspective from scratch, you can craft a narrative in just minutes. Do it your way.

A great starting point for your PVH research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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