PVH (PVH) Stock Forecast & Price Target

PVH is attractive because its two global brands, Calvin Klein and Tommy Hilfiger, now account for practically all revenue, giving the company a cleaner and more focused operating profile, while the stock trades at just about 6x P/E and 6.5x FY26 EPS, which appears overly punitive versus the underlying franchise quality. The latest quarter showed resilience, with revenue down 3% in line with guidance but adjusted EPS of $3.70 well above the $3.00-$3.10 range, while 1Q26 revenue rose 2% to $2.0 billion and inventory fell 5% to $1.5 billion, signaling better productivity and cleaner positioning. The outlook is further supported by expected EPS drivers from license takebacks, margin efficiency, and $300+ million of buybacks this year, with wholesale timing shifts and improving APAC/EMEA conditions offering additional upside if execution continues.

PVH is facing a fundamentally challenged outlook because nearly 50% of sales come from EMEA, where the war in the Middle East is pressuring consumer sentiment, wholesale demand, and tourism, with the region down 5%-6% and expected to remain down MSD for FY26 and Q3. Spring’27 order books are already down MSD, signaling cautious wholesale partners, while higher promotional activity and weaker mix could compress gross margins and create SG&A deleverage as sales soften. Although Q1 revenue declined only 2% and EPS beat guidance, FY26 revenue is now expected to be down slightly and the business remains noisy, with FY27 EPS potentially falling to $8.50-$9.00 under the bear case.