PVH - PVH: A Q1 Beat And Raise With Further Guidance Increases Possible

2024-06-04 20:38:23 ET

Summary

• PVH Corp.'s shares have been volatile but have risen by over 50% in the past year, though they fell sharply after Q4 results.
• The company reported better-than-expected earnings and raised its EPS guidance for the year, in line with my expectations.
• PVH's focus on profit growth and its slimmed-down wholesale strategy has shown positive results, particularly in the Calvin Klein brand.
• With a reasonable macro backdrop, I see scope for further guidance increases and would still be a buyer.

Shares of PVH Corp. ( PVH ) have been a strong but volatile performer over the past year, rising by over 50%. PVH shares did fall sharply after reporting its last set of quarterly results, but I urged investors to buy the dip, and since then, the stock has gained about 10%. I argued we were likely to see the company outperform conservative guidance, and Tuesday afternoon, PVH did raise EPS guidance this year to my anticipated range. Shares are largely flat in response after-hours and near my low-$120’s price target, making now a good time to revisit the stock. I am raising my price target and would still be a buyer....

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