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Is PVH Stock Too Cheap to Ignore After Q1 Earnings?

Operating iconic fashion brands like Tommy Hilfiger and Calvin Klein, PVH (PVH - Free Report)  stock has dropped nearly 20% after lowering its full-year guidance despite exceeding its Q1 expectations on Wednesday.   

Formerly known as Phillips-Van Heusen Corporation, PVH has an extensive reach as a textile-apparel retailer that specializes in designing and marketing branded dress shirts, sportswear, jeanswear, intimate apparel, swim products, footwear, and handbags that are sold globally at various price points and in channels of distribution.

Considering such, it’s a worthy topic to decide whether it’s time to buy the dip in this premium retailer's stock for a long-term rebound with PVH shares trading under $70 and more than 40% from their 52-week high of $124.

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PVH's Q1 Results & Compelling Consistency

Preceding its unfavorable guidance, PVH has now surpassed the Zacks EPS Consensus for 17 consecutive quarters and has topped sales estimates for six straight quarters. Continuing this impressive streak, PVH posted Q1 EPS of $2.30, which topped expectations of $2.24, although this was down 6% from $2.45 per share in the comparative quarter. 

This came on Q1 sales of $1.98 billion, surpassing estimates of $1.93 billion and up from $1.95 billion in the prior period. Notably, PVH has posted an average earnings and sales surprise of 13.47% and 1.38% over the last four quarters, respectively.

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PVH’s Lowered Guidance

While PVH still expects full-year revenue to be slightly up or virtually flat from $8.65 billion a year ago, the company lowered its EBIT and EPS guidance, stating it’s not in a position to fully compensate for the macroeconomic impact of higher tariffs.

PVH now expects EPS for its current fiscal 2026 between $10.75-$11.00, compared to its previous guidance of $12.40-$12.75 and abruptly below the current Zacks Consensus of $12.59 per share or 7% growth. Zacks' projections currently call for PVH’s annual earnings to rise another 13% in FY27 to $14.21, although EPS estimates will likely trend lower following the weaker-than-expected guidance.

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PVH’s “Cheap” Valuation

Amid the selloff, long-term investors may be attracted to PVH’s cheap valuation at just 6.4X forward earnings compared to its Zacks Textile-Apparel Industry average of 13.3X, with some noteworthy peers in the space being Lululemon (LULU - Free Report)  and Ralph Lauren (RL - Free Report) . Furthermore, PVH trades well below its decade-long high of 82.6X forward earnings and offers a noticeable discount to its median of 11.3X during this period.

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More intriguing, PVH’s PEG ratio of 0.57 is under the optimum level of less than 1, which suggests a company is undervalued when comparing the P/E ratio to its growth rate. It’s noteworthy that PVH also trades at less than 1X forward sales.

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Takeaway

Following its Q1 report, PVH stock lands a Zacks Rank #3 (Hold). Biting on the post-earnings dip in PVH stock is very tempting, but it will be important to pay attention to the trend of earnings estimate revisions in the coming weeks.

To that point, a decline in PVH’s FY26 EPS estimates is to be expected, but a steep drop in FY27 EPS estimates could indicate more downside risk ahead and may even lead to a sell rating despite the company’s enticing valuation.  

For now, PVH is a stock that investors may certainly want to hold or add to their watchlist for what will hopefully be a sharp rebound at some point. 


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