Results: PVH Corp. Exceeded Expectations And The Consensus Has Updated Its Estimates

PVH Corp. (NYSE:PVH) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to US$96.89 in the week after its latest second-quarter results. It looks like a credible result overall - although revenues of US$2.1b were what the analysts expected, PVH surprised by delivering a (statutory) profit of US$2.80 per share, an impressive 24% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PVH after the latest results.

Check out our latest analysis for PVH

After the latest results, the consensus from PVH's 16 analysts is for revenues of US$8.64b in 2025, which would reflect a perceptible 2.7% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to descend 14% to US$11.40 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.66b and earnings per share (EPS) of US$11.24 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 6.5% to US$129, suggesting that the analysts might have previously been hoping for an earnings upgrade. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PVH, with the most bullish analyst valuing it at US$174 and the most bearish at US$103 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PVH shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 5.4% annualised decline to the end of 2025. That is a notable change from historical growth of 0.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. It's pretty clear that PVH's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PVH's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for PVH going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether PVH's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.