RPT-Tommy Hilfiger parent PVH posts rise in Q2 revenue; raises annual outlook

Overview

• PVH Q2 revenue rises 4% to $2.167 bln, exceeding company's guidance

• Non-GAAP EPS of $2.52 beats company guidance of $1.85 to $2.00

• Co reaffirms full-year non-GAAP earnings outlook

Outlook

• PVH raises full-year revenue outlook to increase slightly to low single-digits

• PVH reaffirms full-year non-GAAP EPS outlook of $10.75 to $11.00

• Company sees full-year operating margin at approximately 8.5% non-GAAP

• Company expects $1.15/share negative impact from U.S. tariffs in 2025

Result Drivers

• BRAND STRENGTH - Calvin Klein and Tommy Hilfiger brands drove revenue growth through strategic marketing and product innovation

• WHOLESALE SHIFT - Americas revenue boosted by transition of women's product categories in-house and timing shifts in wholesale shipments

• PROMOTIONAL IMPACT - Gross margin decline due to increased promotional environment and higher tariffs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for PVH Corp is $82.00, about 0.5% above its August 25 closing price of $81.60

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw6bcDTTa