PVH (PVH) Stock Forecast & Price Target

PVH has demonstrated a notable increase in global men's underwear sales, rising 14% year-over-year, significantly driven by the success of its Cotton Stretch franchise and a successful spring campaign featuring Bad Bunny. The firm also reported healthy performance across its core categories, with menswear under the Tommy Hilfiger brand up 3% year-over-year and Calvin Klein underwear increasing by 6% due to seasonal product innovation and effective sales execution. Additionally, improved inventory availability across all regions and channels further aligns with consumer demand, suggesting operational efficiency and a robust market position for PVH.

PVH is facing a projected decline in gross margin of approximately 175 basis points year-over-year, indicating ongoing challenges within its operations, particularly related to the Calvin Klein brand, despite some signs of stabilization. Additionally, sales in the Asia Pacific region are expected to decline in the low single digits, aligning with previous quarterly trends, further highlighting weaknesses in market performance. With revenue in APAC contracting by 1.4% reported and 2.9% in constant currency, these factors collectively contribute to a negative outlook on the company's financial health.