PVH - PVH: 2024 Guidance May Be Overly Conservative

2024-04-02 12:17:47 ET

Summary

• PVH shares plunged over 20% after weak guidance for 2024, forcing me to evaluate my buy thesis.
• Q4 revenue declined 1% on a constant currency basis but beat guidance, with key brands Calvin Klein and Tommy Hilfiger generating growth in 2023.
• PVH expects revenue to fall 6-7% in 2024, but this implies a larger decline in Europe than we may see.
• I view guidance as conservative, and I see PVH stock gradually recouping some losses, making this an attractive entry point.

PVH Corp. ( PVH ) had been a strong performer over the past year with the stock reaching a 52-week high; however, shares plunged over 20% in response to weak guidance for 2024. I last covered PVH in December after its Q3 results, rating the stock a “buy.” While shares had rallied 40%, after this morning’s decline, they are now up just 8% since my recommendation. Moreover, given this guidance, we need to reevaluate the buy thesis and see if it still holds....

For further details see: