Core Viewpoint - PVH Corporation is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2024, with revenues estimated at $2.3 billion, a decrease of 6.1% year-over-year, and earnings per share projected at $3.19, down 14.3% from the previous year [1]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for quarterly revenues is pegged at $2.3 billion, indicating a drop of 6.1% from the prior-year number [1]. - The consensus estimate for earnings is pegged at $3.19 per share, which indicates a decline of 14.3% year over year [1]. - In the last reported quarter, the company delivered an earnings surprise of 16.1%, with a trailing four-quarter earnings surprise of 17.3% on average [2]. Group 2: Operational Challenges - The fourth-quarter results are expected to reflect a challenging operating backdrop due to a calendar shift, including the loss of the 53rd week [3]. - The Heritage Brands segment has been experiencing sluggishness, particularly in the women's intimates business [3]. - The wholesale channel is under pressure, with anticipated softness in orders from retail partners and a more promotional retail environment expected to weigh on profitability [4]. Group 3: Margin and Cost Pressures - The fourth-quarter operating margin is expected to contract by 200 basis points to 10% [5]. - Gross margin is forecasted to decline nearly 200 basis points due to a moderately higher promotional backdrop and elevated freight costs [6]. - Management anticipates a mid-single-digit revenue decrease in the wholesale business, including a 2% decline from the Heritage Intimates business [7]. Group 4: Regional Performance Insights - In Europe, the company foresees a high-single-digit revenue decline in euros, reflecting ongoing macroeconomic challenges [7]. - The Zacks Consensus Estimate for Tommy Hilfiger and Calvin Klein sales is currently pegged at $1.3 billion and $1.02 billion, indicating year-over-year drops of 1.4% and 3.2% respectively [7]. Group 5: Strategic Initiatives - PVH Corp's PVH+ Plan aims to accelerate growth by enhancing core strengths and connecting its brands with consumers [8]. - The company strives to create the best products across significant growth categories and strengthen its presence in global demand spaces [8]. Group 6: Valuation Perspective - PVH Corp's shares are trading at a forward 12-month price-to-earnings ratio of 5.43, below the five-year median of 9.21x and the industry average of 12.02x, presenting an attractive opportunity for investors [10].

Core Viewpoint - PVH Corp. is expected to report a decline in quarterly earnings and revenue for the fourth quarter, with analysts maintaining mixed ratings on the stock and adjusting price targets significantly [1][2]. Financial Performance - PVH is projected to report quarterly earnings of $3.22 per share, down from $3.72 per share in the same period last year [1]. - The company anticipates quarterly revenue of $2.34 billion, compared to $2.49 billion a year earlier [1]. Analyst Ratings - Citigroup analyst Paul Lejuez has maintained a Neutral rating on PVH and lowered the price target from $123 to $72 [2]. - Telsey Advisory Group analyst Dana Telsey has maintained an Outperform rating while cutting the price target from $130 to $90 [2]. Dividend Information - PVH currently offers an annual dividend yield of 0.22%, translating to a quarterly dividend of 4 cents per share, or 15 cents annually [2]. - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 40,000 shares, equating to a total investment of about $2,663,600 [3]. - For a more conservative monthly income goal of $100, an investor would need 8,000 shares, requiring an investment of approximately $532,720 [4]. Stock Price Movement - PVH shares fell by 0.5% to close at $66.59 on Thursday [6].

Core Viewpoint - Wall Street analysts predict that PVH will report a quarterly earnings per share (EPS) of $3.19, reflecting a year-over-year decline of 14.3%, with revenues expected to be $2.34 billion, down 6.1% from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating that analysts have not revised their initial projections during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Revenue- Tommy Hilfiger' will reach $1.28 billion, indicating a decline of 5% year-over-year [5]. - The forecast for 'Revenue- Total Calvin Klein' is $1.02 billion, suggesting a decrease of 4.5% compared to the prior year [5]. - 'Revenue- Heritage Brands Wholesale' is expected to be $43.65 million, reflecting a significant year-over-year decline of 41.3% [5]. - For 'Revenue- Tommy Hilfiger North America', the estimate is $393.19 million, indicating a slight decline of 1.9% year-over-year [6]. - 'Revenue- Calvin Klein North America' is projected at $358.84 million, with a minimal change of -0.3% [6]. - 'Revenue- Calvin Klein International' is expected to reach $658.03 million, reflecting a year-over-year decline of 6.6% [6]. - The consensus estimate for 'Revenue- Tommy Hilfiger International' stands at $890.79 million, indicating a decline of 6.3% from the previous year [7]. Stock Performance - Over the past month, shares of PVH have decreased by 13.1%, while the Zacks S&P 500 composite has only declined by 2.9% [7]. - PVH currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [7].

Group 1 - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a notable background in investment, having founded Tradition Capital Management in 2000 and received multiple accolades for his performance [1] - Halliburton has extensive experience in the investment field, starting his career at Merrill Lynch in 1986 and earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] Group 2 - Halliburton earned the Chartered Financial Analyst designation in 1994 and was recognized as the top-performing portfolio manager at Brundage, Story and Rose [1] - His investment strategy, known as "Disciplined Growth Strategy," outperformed the S&P 500 during the 1990s bull market [1] - Halliburton was noted as the youngest partner at his firm and received high praise from senior managing partners for his investment acumen [1]

Company Overview - PVH Corp. (NYSE: PVH) is engaged in selling apparel, footwear, accessories, and other products under the Tommy Hilfiger and Calvin Klein brands [1] Sales Distribution - In FY2023, approximately 48% of PVH's sales were generated from Europe, 29% from the United States, and 18% from the Asia Pacific region [1]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The author has a beneficial long position in GIII shares, indicating a personal investment interest in the company [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship with any company whose stock is discussed, reinforcing the independence of the analysis [2]

Group 1 - Investors in PVH Corp. should monitor stock movements due to high implied volatility in the options market, particularly the Mar 21, 2025 $65.00 Call option [1] - Implied volatility indicates market expectations for significant price movement, suggesting potential upcoming events that could lead to a rally or sell-off [2] - PVH Corp currently holds a Zacks Rank 3 (Hold) in the Textile - Apparel industry, which is in the top 15% of the Zacks Industry Rank [3] Group 2 - No analysts have increased earnings estimates for PVH Corp in the last 60 days, while two have decreased their estimates, leading to a slight drop in the Zacks Consensus Estimate from $3.20 to $3.19 per share [3] - The high implied volatility may indicate a developing trade opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Core Viewpoint - PVH, the owner of Calvin Klein and Tommy Hilfiger, has been blacklisted by China's Ministry of Commerce for undermining market rules and violating Chinese laws, marking a significant escalation in the U.S.-China trade tensions [1][3][4] Group 1: Blacklisting and Implications - PVH is the first fashion brand to be added to China's "unreliable entities" list, a designation typically reserved for defense and biotech companies [3] - The blacklisting could effectively halt all PVH business operations in China, although no specific sanctions have been announced yet [2][3] - The decision follows an ongoing investigation into PVH's operations in China that began in September [3][6] Group 2: Business Impact - The Asia-Pacific region accounted for approximately 20% of PVH's $9.2 billion revenues in the most recent fiscal year 2023, highlighting the importance of the Chinese market for the company's retail growth [7] - PVH operates 128 factories in China, producing about 20% of its goods, which could face significant disruption due to the blacklisting [8] - The company also has manufacturing facilities in Vietnam, Turkey, and other countries, but shifting production may compromise quality and production processes [8] Group 3: Strategic Context - The blacklisting is seen as a retaliatory measure in the ongoing U.S.-China trade war, particularly in response to PVH's ban on Xinjiang cotton, aligning with U.S. government guidelines [6][11] - Experts suggest that China targeted PVH because it is a high-visibility brand that is large enough to make an impact but not so large as to cause major disruptions in the U.S. market [9][11] - The situation illustrates the broader geopolitical tensions, with PVH being used as an example of the potential consequences for U.S. companies operating in China amid escalating trade restrictions [11]

Stock Performance - PVH Corp stock is down 2% in premarket trading following a downgrade by J P Morgan Securities from "overweight" to "neutral" and a price target reduction from $149 to $113 [1] - Year-to-date, PVH shares have an 8 9% deficit, with five out of 14 brokerages maintaining a "hold" rating The consensus target price of $126 31 represents a 31 1% premium to Thursday's close [2] - Over the longer term, PVH stock is down 18 1% year-over-year, nearing its 52-week low of $88 60 and facing potential resistance at its 100-day moving average [3] Options Strategy - PVH's Schaeffer's Volatility Index (SVI) of 33% ranks in the 20th percentile over the last 12 months, indicating relatively low volatility [4] - The Schaeffer's Volatility Scorecard (SVS) for PVH is 25 out of 100, suggesting it is a strong candidate for premium-selling strategies [4]

Core Viewpoint - PVH Corporation is benefiting from the effective execution of the PVH+ Plan, which focuses on enhancing brand strength and cost management to connect with consumers [1] PVH's Strategies - The PVH+ Plan emphasizes five key drivers: winning with product, consumer engagement, a digitally-led marketplace, a demand and data-driven operating model, and driving efficiencies while investing in growth [2] - The company is reinforcing its Calvin Klein and TOMMY HILFIGER brands to meet consumer needs in innovative ways [2] International Business Expansion - PVH is actively expanding its international business, with improved order books in Europe and robust growth in the Asia-Pacific region [3] Wholesale Focus - The company is concentrating on high-quality sales within wholesale and is innovating its product offerings [4] - PVH anticipates returning to modest growth by 2025 and aims to achieve a long-term operating margin target of 15% [4] Stock Valuation - PVH's stock is currently trading at a price/earnings ratio of 7.79, which is lower than the industry average of 14.27 and below its five-year median of 9.30 [5] Concerns for PVH Corp. - The Heritage Brands segment has faced challenges, with revenues declining 54% year over year in Q3 of fiscal 2024, including a 44% drop in women's intimates [6] - Elevated freight costs and a higher promotional backdrop are negatively impacting gross margins [6] Revenue Projections - For fiscal 2024, PVH expects a year-over-year revenue decline of 6-7%, which includes a 2% reduction from the divestiture of the women's intimates business [7] Future Outlook - The Zacks Consensus Estimate for PVH's fiscal 2025 indicates a 1.3% increase in sales and a 6% increase in earnings per share year over year [9] - The company is strengthening its competitive advantage and preparing for long-term success through robust strategies [8]