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Summary

  • PVH Corp. (NYSE: PVH) reported higher-than-expected revenue of US$ 2.158 billion for Q1 2023.
  • The consensus mean price target on PVH was US$ 95.71 as on May 5, 2023, a 41.68% upside potential over Friday’s closing price.
  • Wells Fargo upgraded PVH to ‘Overweight’ post the release of its financial results for Q1 2023

PVH Corp. (NYSE: PVH) reported a first quarter revenue of US$ 2.158 billion, higher than the company expectations of no major change over the prior year period. After the announcement, PVH received a rating upgrade from Wells Fargo Securities.

Wells Fargo upgraded PVH to ‘Overweight’ rating post the release of its financial results for Q1 2023. The broker’s price target on the stock was US$ 110, which is 41.68% higher than its closing price of US$ 77.64 on June 2, 2023.

As per data available on EODHD/Others, PVH has a mean recommendation rating of 2.4 on a scale from one to five. Here, one corresponds to a recommendation of ‘Strong Buy’ while five corresponds to ‘Strong Sell’ recommendation.

The consensus mean price target on PVH was US$ 95.71 as on May 5, 2023. This marks a 41.68% upside potential over its closing price on Friday, June 2, 2023.

PVH price chart; Image Source: EODHD/Others

PVH closed at US$ 77.64 on June 2, 2023. Earlier this year, the stock hit is 52-week high of US$ 94.51 on February 2, 2023.

What are analysts saying about PVH?

As per data available on EODHD/Others, 16 analysts have covered PVH. Among these analysts, two have recommended it as a ‘Strong Buy’, five analysts have recommended it as a ‘Buy’ and nine analysts have recommended it as a ‘Hold’. PVH did not receive a ‘Sell’ or ‘Strong Sell’ rating from any of the analysts as on May 5, 2023.

Image source: ©2023 Kalkine®; Data source: PVH EODHD/Others

Post the release of the company’s financial results, Piper Sandler Companies retained its ‘Neutral’ rating on the stock, with a price target of US$ 75. This is 3.4% lower than the stock’s closing price of US$ 77.64 on Friday.

Alternatively, Cowen and Company downgraded its rating on PVH to ‘Market Perform’, on June 1, 2023, a day after the release of PVH’s financial results. Wedblush Securities also downgraded to a ‘Neutral’ recommendation on the stock post Q1 2023 release.

Guggenheim Securities retained its ‘Buy’ recommendation on the stock in its review of the stock on May 31, 2023. The broker’s price target on PVH was US$ 110, an upside potential of 41.68% over its closing price of US$ 77.64 on June 2, 2023.

PVH’s Financial Results

PVH reported a revenue increase of 2% compared to the previous year period, owing to the company’s strong performance in its international business. It benefitted from the removal of COVID restraints in China in Q4 2022 and continued growth in Europe.

The company’s EBIT during the period was US$ 199 million and EPS was US$ 2.14, marking a 10% increase compared to Q1 in the previous year.

PVH also reported an increase in its direct-to-consumer revenue of 8% over the prior year period. Its gross margin for the quarter stood at 57.95%, as against 58.4% in the prior year period.

Among the company-owned brands, Tommy Hilfiger reported revenue increase of 5%, Calvin Klein reported flat revenue and Heritage Brands reported revenue decrease of 12% compared to prior year period.