PVH Corp. (PVH) | Investment Case

1. Company Snapshot

1.a. Company Description

PVH Corp.operates as an apparel company worldwide.The company operates through six segments: Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail.

It designs, markets, and retails men's, women's, and children's apparel and accessories, including branded dress shirts, neckwear, sportswear, jeans wear, performance apparel, intimate apparel, underwear, swimwear, swim-related products, handbags, accessories, footwear, outerwear, home furnishings, luggage products, sleepwear, loungewear, hats, scarves, gloves, socks, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, fragrance, home bed and bath furnishings, small leather goods, and other products.The company offers its products under its own brands, such as Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, ARROW, Warner's, Olga, Geoffrey Beene, and True&Co., as well as various other owned, licensed, and private label brands.It also licenses its own brands over various products.

The company distributes its products at wholesale in department, chain, and specialty stores, as well as through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations, as well as through digital commerce sites.It markets its products to approximately 40 countries.PVH Corp.

was founded in 1881 and is based in New York, New York.

Show Full description

1.b. Last Insights on PVH

Breaking News: PVH Corp reported Q3 earnings, beating estimates with revenues up 2% year-over-year to $2.29 billion. However, margins contracted 210bps due to tariff pressures. Management narrowed FY guidance to $10.85-$11.00 EPS. Europe saw a constant-currency sales decline, while China improved and Americas profits were hit hard by tariffs. The company remains cautious, citing muted European demand and limited pricing power. Based on the results, a 'hold' recommendation is given, as tariff pressures and muted demand constrain upside despite a low earnings multiple.

1.c. Company Highlights

Last Price	78.49
Change Percentage	1.72%
Open	77.02
Previous Close	77.16
Market Cap ( Millions)	3777
Volume	1420988
Year High	111.96
Year Low	59.28
M A 50	80.85
M A 200	75.94

FCF Yield	13.65%
Dividend Yield	0.19%
ROE	9.41%
Debt / Equity	88.07%
Net Debt / EBIDTA	824.09%
Price To Book	0.78
Price Earnings Ratio	8.06
Price To FCF	7.32
Price To sales	0.43
EV / EBITDA	15.95

2. PVH Corp.'s Q3 2025 Earnings: A Steady Performance Amidst Challenges

PVH Corp.'s third-quarter 2025 revenue was $2.3 billion, down less than 1% in constant currency, in line with expectations. The company's EPS was $2.83, beating estimates of $2.56. The gross margin was down 210 basis points in Q3, primarily due to tariffs and the women's sportswear license take-back. However, the company has seen steady sequential improvement, with a plan to return to growth. The company's operating margin is projected to be approximately 9% in Q4, and EPS is expected to be in the range of $3.20 to $3.35.

Publication Date: 08:25

                                    📋 Highlights
                                    Q3 Revenue Performance:
                                                Reported $2.3 billion (-1% in constant currency), with wholesale up 1% and D2C down 1%, aligning with guidance.
Regional Growth Variability:
                                                Americas revenue grew 2% (wholesale driven), EMEA up 4% reported but -2% in constant currency, and Asia Pacific flat in constant currency.
Full-Year Outlook:
                                                Reaffirmed operating margin guidance and narrowed non-GAAP EPS to $7.04–$7.09, with full-year revenue up low single digits reported.
Calvin Klein Strategy:
                                                Brand revenue up 2% (flat in constant currency) amid product design consolidation, on track for margin recapture ahead of spring 2026.
Cost Efficiency Progress:
                                                PVH+ Plan achieved 200–300 bps SG&A improvement by 2025, with over 200 bps already secured and 300 bps gross margin margin recapture planned.

                                

Regional Performance

In Europe, revenue increased 4% but was down low single digits in constant currency, with wholesale down less than 1% and D2C down mid-single digits. In the Americas, revenue grew 2%, driven by wholesale growth, while D2C declined low single digits. Asia Pacific revenue was flat in constant currency, with D2C turning to positive growth. The company's global brands, Tommy Hilfiger and Calvin Klein, showed resilience, with revenues up 1% and 2% as reported, respectively.

Operational Highlights

The company continues to execute its PVH+ Plan, focusing on iconic brands Calvin Klein and Tommy Hilfiger, and investing in marketing and growth initiatives. Calvin Klein's global product capability in New York is on track to resolve transitory operational challenges. The company noted that improving weather in Europe is helping to sell cold-weather categories and transitional products. Black Friday sales were on plan in Europe and North America, with a strong showing from Gen-Z consumers.

Outlook and Valuation

For the full year, PVH expects to deliver revenue and operating margin in line with its previous guidance. Non-GAAP EPS outlook is narrowed to $7.04-$7.09. The company's P/E Ratio is 8.06, and the ROE is 9.41%, indicating a relatively stable valuation. With an expected revenue growth rate of 3.0% next year, the company's valuation appears reasonable. The company's focus on building the Calvin Klein brand's desirability and its efforts to improve SG&A through its PVH+ Value Driver 5 initiative are expected to drive long-term growth.

Cost Optimization and Future Plans

The company announced 200-300 basis points of SG&A improvement by 2025 through its PVH+ Value Driver 5 initiative, with over 200 basis points already confirmed. This will flow through into 2026. The company plans to continue building on its strengths, with a focus on product design, marketing, and consumer engagement. The company's confidence in its inventory purchases for the next couple of seasons is expected to drive a strong free cash flow year in 2024 and enter 2026 with significant cash, providing optionality.

3. NewsRoom

PVH Corp shares slide on tariff hit despite Q3 earnings beat

Dec -04

Source: proactiveinvestors.com

PVH Corp Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Dec -04

Source: zacks.com

PVH Corp. (PVH) Q3 2026 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

PVH Corp shares slide on tariff hit despite Q3 earnings beat

Dec -04

Source: proactiveinvestors.com

PVH Corp: Q3 Results Show Ongoing Tariff Pressure

Dec -04

Source: seekingalpha.com

PVH (PVH) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Dec -04

Source: zacks.com

PVH (PVH) Tops Q3 Earnings and Revenue Estimates

Dec -03

Source: zacks.com

Calvin Klein Parent PVH Stock Slides After Q3 Earnings

Dec -03

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.08%)

6. Segments

Tommy Hilfiger International

Expected Growth: 2.2%

Tommy Hilfiger's 2.2% growth is driven by strong brand recognition, successful marketing campaigns, and strategic expansion into emerging markets. Additionally, the brand's focus on digital transformation, e-commerce growth, and efficient supply chain management have contributed to its growth. Furthermore, PVH Corp's efforts to revamp the brand's product offerings and improve profitability have also supported its growth momentum.

Calvin Klein International

Expected Growth: 2.1%

Calvin Klein International's 2.1% growth is driven by strong brand recognition, increased online presence, and strategic expansion in Asia. Additionally, the brand's focus on digital marketing, influencer partnerships, and innovative product lines have contributed to its growth. Furthermore, PVH Corp's efforts to improve operational efficiency and reduce costs have also positively impacted the segment's performance.

Tommy Hilfiger North America

Expected Growth: 1.9%

Tommy Hilfiger North America's 1.9% growth is driven by strong brand recognition, increased e-commerce sales, and strategic wholesale partnerships. Additionally, the segment has benefited from PVH Corp's focus on digital marketing, improved product offerings, and effective inventory management. These factors have contributed to a steady revenue increase, despite a competitive market.

Calvin Klein North America

Expected Growth: 2.0%

Calvin Klein North America's 2.0% growth is driven by increasing demand for premium denim, successful marketing campaigns, and strategic wholesale partnerships. Additionally, the brand's focus on digital transformation, including e-commerce and social media, has enhanced customer engagement and contributed to sales growth.

Heritage Brands Wholesale

Expected Growth: 1.8%

Heritage Brands Wholesale from PVH Corp. growth of 1.8% driven by strong demand for Calvin Klein and Tommy Hilfiger brands, increased distribution channels, and strategic pricing. Additionally, the company's focus on digital marketing and e-commerce expansion contributed to the growth.

7. Detailed Products

Calvin Klein Apparel

Fashion apparel for men and women, including denim, dresses, and outerwear

Tommy Hilfiger Apparel

Classic American cool fashion apparel for men, women, and kids

Van Heusen Dress Shirts

High-quality, stylish dress shirts for men

Izod Golf Apparel

Golf-inspired apparel for men and women, including polo shirts and outerwear

Warner's Intimate Apparel

Lingerie and shapewear for women

Olga Intimate Apparel

Lingerie and shapewear for women, focusing on comfort and support

Speedo Swimwear

High-performance swimwear for competitive swimmers and recreational swimmers

8. PVH Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PVH Corp. operates in the apparel industry, where substitutes are available, but the company's strong brand portfolio, including Calvin Klein and Tommy Hilfiger, helps to mitigate the threat.

Bargaining Power Of Customers

PVH Corp.'s customers are primarily retailers and wholesalers, who have limited bargaining power due to the company's strong brand presence and diversified distribution channels.

Bargaining Power Of Suppliers

PVH Corp. relies on a large network of suppliers for raw materials and manufacturing, but the company's scale and diversification help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The apparel industry has high barriers to entry, including significant capital requirements and the need for established distribution channels, making it difficult for new entrants to compete with PVH Corp.

Intensity Of Rivalry

The apparel industry is highly competitive, with many established players, including VF Corp, Ralph Lauren, and Hanesbrands, competing for market share and customer loyalty.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	32.44%
Debt Cost	3.95%
Equity Weight	67.56%
Equity Cost	15.11%
WACC	11.49%
Leverage	48.02%

11. Quality Control: PVH Corp. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ralph Lauren

A-Score: 5.6/10

Value: 2.6

Growth: 6.1

Quality: 6.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

Kontoor Brands

A-Score: 5.1/10

Value: 3.9

Growth: 4.0

Quality: 5.8

Yield: 7.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

Columbia Sportswear

A-Score: 4.6/10

Value: 5.6

Growth: 5.6

Quality: 6.2

Yield: 3.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

Albany International

A-Score: 4.1/10

Value: 4.4

Growth: 4.9

Quality: 4.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

PVH

A-Score: 4.0/10

Value: 7.3

Growth: 4.3

Quality: 5.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

Under Armour

A-Score: 3.4/10

Value: 7.6

Growth: 2.1

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.27%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.49%

PVH Corp. - US6936561009

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PVH

1.c. Company Highlights

Strong Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Fairly Valued

Stable Momentum

Lower Growth

Revenues Miss

Cheaper

Weak Momentum

Medium Volatility

2. PVH Corp.'s Q3 2025 Earnings: A Steady Performance Amidst Challenges

Regional Performance

Operational Highlights

Outlook and Valuation

Cost Optimization and Future Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.08%)

6. Segments

Tommy Hilfiger International

Expected Growth: 2.2%

Calvin Klein International

Expected Growth: 2.1%

Tommy Hilfiger North America

Expected Growth: 1.9%

Calvin Klein North America

Expected Growth: 2.0%

Heritage Brands Wholesale

Expected Growth: 1.8%

7. Detailed Products

Calvin Klein Apparel

Tommy Hilfiger Apparel

Van Heusen Dress Shirts

Izod Golf Apparel

Warner's Intimate Apparel

Olga Intimate Apparel

Speedo Swimwear

8. PVH Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: PVH Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.49$

Current Price

78.49$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA