We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is PVH Stock a Value Buy After Earnings Strength and Flat Sales?
Read MoreHide Full Article
Key Takeaways
PVH beat Q1 fiscal 2026 earnings and revenue estimates, though constant-currency sales declined 2%.
PVH is benefiting from DTC growth, digital commerce gains and continued investments in stores and e-commerce.
PVH expects roughly flat fiscal 2026 reported revenue as tariffs and weaker EMEA demand weigh on visibility.
PVH Corp. (PVH - Free Report) is drawing investor attention after an earnings beat and a valuation profile that screens cheaply against earnings and sales. The question is whether that value case is strong enough when full-year sales are expected to be roughly flat.
The answer depends on how investors weigh brand execution and tariff offsets against softer demand in Europe, the Middle East and Africa.
PVH’s Valuation Looks Undemanding
PVH trades at a trailing 12-month price-to-earnings multiple of 6.9X and a forward price-to-earnings multiple of 6.4X. Its price-to-sales ratio is 0.4X, while the PEG ratio stands at 0.9.
Image Source: Zacks Investment Research
Those figures support the stock’s value appeal, especially after shares gained 21.8% in the past three months compared with the industry’s 0.5% rise. The stock also has a 52-week range of $59.60 to $100.75, with the latest referenced stock price at $77.07.
Ralph Lauren Corporation (RL - Free Report) is a useful peer for investors comparing global apparel companies with premium brand positioning and international distribution. Tapestry, Inc. (TPR - Free Report) , the parent of Coach and Kate Spade, offers another relevant comparison for brand-led consumer discretionary companies focused on direct relationships with shoppers.
Earnings Beat, but Sales Growth Remains Limited
PVH reported adjusted earnings of $2.01 per share for the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.80 and management’s guidance range of $1.65-$1.80. The figure was down 12.6% from the year-ago quarter’s $2.30.
Revenues increased 2% year over year to $2.025 billion and beat the consensus mark of $1.997 billion. On a constant-currency basis, revenues declined 2%, underscoring why the post-earnings debate is not only about the earnings beat.
Direct-to-consumer revenues rose 6% on a reported basis and 3% in constant currency. Owned and operated digital commerce advanced 11% reported and 6% in constant currency, with growth across all regions.
Brands and Digital Execution Support the Case
PVH continues to rely on Calvin Klein and Tommy Hilfiger as its core engines. In the first quarter, Calvin Klein revenues increased 1% reported but declined 3% in constant currency, while Tommy Hilfiger revenues rose 3% reported and fell 2% in constant currency.
The company is using product innovation, marketing and consumer engagement to strengthen key categories. Calvin Klein is focused on underwear and denim, while Tommy Hilfiger is emphasizing sweaters, outerwear and shirts.
PVH also continues to invest in e-commerce, store concepts and shop-in-shop renovations. It completed more than 140 refurbishments and new store openings combined, while using data-driven tools to improve consumer insights, demand forecasting and operations.
Tariffs and EMEA Keep the Value Case in Check
The main caution is the outlook. PVH now expects fiscal 2026 revenues to be approximately flat on a reported basis and to decrease slightly in constant currency, compared with its prior view for a slight reported increase.
EMEA remains the weakest region, with first-quarter constant-currency revenues down 5% due to softness in both direct-to-consumer and wholesale channels. The prolonged effects of the Middle East conflict continue to weigh on consumer demand, store traffic and wholesale activity.
Tariffs are another pressure point. PVH assumes a full-year blended tariff rate of about 15% on goods entering the United States, with an estimated gross EBIT impact of about $195 million, or roughly 215 basis points of operating margin pressure. Tariff refunds should partially offset the hit, including an estimated $100 million benefit to EBIT.
Bottom Line on PVH Stock
PVH has a credible value argument, but it is not a clean one. Low valuation multiples, disciplined inventory management and direct-to-consumer growth are positives, while flat sales guidance, tariff exposure and EMEA weakness limit near-term visibility.
PVH also has a Value Score of A, a Momentum Score of A, a Growth Score of C and a VGM Score of A. The Value Score of A supports the view that PVH screens attractively on valuation, while the Momentum Score of A reflects favorable price action. The Growth Score of C is more balanced. Together with the Zacks Rank #3, the setup suggests PVH may appeal to value-focused investors, but the stock still needs steadier sales trends to make the buy case stronger.
View the Zacks #1 Rank List
Image: Bigstock
Is PVH Stock a Value Buy After Earnings Strength and Flat Sales?
Key Takeaways
PVH Corp. (PVH - Free Report) is drawing investor attention after an earnings beat and a valuation profile that screens cheaply against earnings and sales. The question is whether that value case is strong enough when full-year sales are expected to be roughly flat.
The answer depends on how investors weigh brand execution and tariff offsets against softer demand in Europe, the Middle East and Africa.
PVH’s Valuation Looks Undemanding
PVH trades at a trailing 12-month price-to-earnings multiple of 6.9X and a forward price-to-earnings multiple of 6.4X. Its price-to-sales ratio is 0.4X, while the PEG ratio stands at 0.9.
Image Source: Zacks Investment Research
Those figures support the stock’s value appeal, especially after shares gained 21.8% in the past three months compared with the industry’s 0.5% rise. The stock also has a 52-week range of $59.60 to $100.75, with the latest referenced stock price at $77.07.
Ralph Lauren Corporation (RL - Free Report) is a useful peer for investors comparing global apparel companies with premium brand positioning and international distribution. Tapestry, Inc. (TPR - Free Report) , the parent of Coach and Kate Spade, offers another relevant comparison for brand-led consumer discretionary companies focused on direct relationships with shoppers.
Earnings Beat, but Sales Growth Remains Limited
PVH reported adjusted earnings of $2.01 per share for the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.80 and management’s guidance range of $1.65-$1.80. The figure was down 12.6% from the year-ago quarter’s $2.30.
Revenues increased 2% year over year to $2.025 billion and beat the consensus mark of $1.997 billion. On a constant-currency basis, revenues declined 2%, underscoring why the post-earnings debate is not only about the earnings beat.
PVH Corp. Price and EPS Surprise
PVH Corp. price-eps-surprise | PVH Corp. Quote
Direct-to-consumer revenues rose 6% on a reported basis and 3% in constant currency. Owned and operated digital commerce advanced 11% reported and 6% in constant currency, with growth across all regions.
Brands and Digital Execution Support the Case
PVH continues to rely on Calvin Klein and Tommy Hilfiger as its core engines. In the first quarter, Calvin Klein revenues increased 1% reported but declined 3% in constant currency, while Tommy Hilfiger revenues rose 3% reported and fell 2% in constant currency.
The company is using product innovation, marketing and consumer engagement to strengthen key categories. Calvin Klein is focused on underwear and denim, while Tommy Hilfiger is emphasizing sweaters, outerwear and shirts.
PVH also continues to invest in e-commerce, store concepts and shop-in-shop renovations. It completed more than 140 refurbishments and new store openings combined, while using data-driven tools to improve consumer insights, demand forecasting and operations.
Tariffs and EMEA Keep the Value Case in Check
The main caution is the outlook. PVH now expects fiscal 2026 revenues to be approximately flat on a reported basis and to decrease slightly in constant currency, compared with its prior view for a slight reported increase.
EMEA remains the weakest region, with first-quarter constant-currency revenues down 5% due to softness in both direct-to-consumer and wholesale channels. The prolonged effects of the Middle East conflict continue to weigh on consumer demand, store traffic and wholesale activity.
Tariffs are another pressure point. PVH assumes a full-year blended tariff rate of about 15% on goods entering the United States, with an estimated gross EBIT impact of about $195 million, or roughly 215 basis points of operating margin pressure. Tariff refunds should partially offset the hit, including an estimated $100 million benefit to EBIT.
Bottom Line on PVH Stock
PVH has a credible value argument, but it is not a clean one. Low valuation multiples, disciplined inventory management and direct-to-consumer growth are positives, while flat sales guidance, tariff exposure and EMEA weakness limit near-term visibility.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PVH also has a Value Score of A, a Momentum Score of A, a Growth Score of C and a VGM Score of A. The Value Score of A supports the view that PVH screens attractively on valuation, while the Momentum Score of A reflects favorable price action. The Growth Score of C is more balanced. Together with the Zacks Rank #3, the setup suggests PVH may appeal to value-focused investors, but the stock still needs steadier sales trends to make the buy case stronger.