Why Analyst Sees Attractive Valuation For Calvin Klein Parent PVH Despite 'Noisy' Q1

Calvin Klein and Tommy Hilfiger parent PVH Corp. (NYSE:PVH) shares are trading lower after the company cut its FY25 guidance below estimates and issued second-quarter adjusted EPS guidance below estimates.

On Wednesday, PVH reported quarterly earnings of $2.30 per share, which beat the analyst consensus estimate of $2.25. Quarterly revenue of $1.98 billion beat the Street estimate of $1.93 billion.

The company cut its fiscal 2026 adjusted EPS guidance from a range of $12.40 to $12.75 to a new range of $10.75 to $11, versus the $12.52 analyst estimate.

Telsey Advisory Group analyst Dana Telsey maintained an Outperform and $90 price target.

The analyst writes that PVH posted a first-quarter beat, though its operating margin fell short due to gross margin pressures from an unfavorable channel mix and a promotional environment.

The analyst notes that the company reduced its FY25 earnings outlook, and the operating margin now includes incremental tariff pressure.

Headwinds are expected to ease in the second half as the company offsets about half of the tariff impact with other strategic actions, adds the analyst.

Despite this challenging period, the analyst believes the business is building a stronger foundation for consumer engagement and marketplace execution in the long term.

Needham analyst Tom Nikic reiterated a Buy and $115 price target.

The analyst writes that the company’s guidance cut will likely exert some selling pressure on the shares but believes the downward revision was largely already priced into the stock.

With revised numbers and an optically inexpensive valuation, Nikic still sees a favorable medium-term risk/reward, particularly due to underappreciated EPS drivers for 2026, such as GIII license takebacks, cost efficiencies, and share buybacks.

However, the analyst concedes that the “noisy” first-quarter earnings will likely temper investor enthusiasm in the near term.

Several analysts revised the price target and rating for the company following the results:

Wells Fargo analyst Ike Boruchow kept an Equal-Weight rating and cut the price forecast from $100 to $80.

BMO Capital analyst Simeon Siegel maintained a Market Perform rating and lowered the price forecast from $93 to $84.

Evercore ISI Group analyst Michael Binetti reaffirmed an Outperform and trimmed the price forecast from $105 to $95.

PVH Price Action: PVH shares are down 16.71% at $67.35 at publication on Thursday.

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