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....
Read the full article on Seeking Alpha
For further details see:
PVH: 2024 Guidance May Be Overly Conservative