PVH (PVH) Stock Forecast & Price Target

PVH has highlighted a positive outlook driven by an operating margin of 8.8% and a solid EBIT margin of +19% in the EMEA region, with year-over-year EBIT growth of +5.6%. The company's focus on key fashion categories, particularly denim, has seen strong growth, exemplified by successful marketing campaigns and increased penetration in transitional outerwear. Additionally, PVH anticipates a year-over-year revenue increase at the higher end of its guidance, showcasing its commitment to strengthening consumer engagement and driving efficiencies amid a transitional business environment.

PVH's financial outlook is negatively influenced by increased competition and macroeconomic concerns, leading to revised revenue growth projections for FY25 to negative low-single digits to mid-single digits, a decline from previous projections of flat to slight growth. Anticipated higher promotional activity is expected to further pressure gross margins, resulting in earnings per share (EPS) estimates falling below the guidance range of $10.75-$11.00, potentially dropping to around $10.00. Additionally, revenues from the EMEA region are projected to decline slightly year-over-year at constant currency, reinforcing the ongoing struggles and weakness in the company's direct-to-consumer channel.