PVH Posts Q2 Beat, But Analysts Expect Softer Trends In US And China To Continue

Core Viewpoint - PVH Corp reported disappointing second-quarter earnings, leading to a significant decline in its stock price, despite some analysts maintaining positive ratings and price targets. Financial Performance - PVH reported adjusted earnings of $3.01 per share, surpassing the consensus estimate of$ 2.29 per share, primarily due to a $0.55 per share benefit from an unplanned favorable tax settlement [2] - Revenues decreased by 6% year-on-year, but this was better than the market expectations of a 6.3% contraction [2] Guidance and Outlook - The company raised its full-year earnings guidance, reflecting the tax benefit, but still anticipates a revenue decline of 6% to 7% [3] - Management indicated that the softer trends observed at the end of the second quarter, particularly in the U.S. and China, are expected to persist in the latter half of the year [5] - The guidance for adjusted earnings suggests an operating margin contraction of approximately 150 basis points year-on-year at the midpoint [5] Analyst Ratings - Goldman Sachs analyst Brooke Roach maintained a Buy rating with a price target of$ 144 [1] - JPMorgan analyst Matthew Boss reiterated an Overweight rating with a price target of $154, noting that the full-year guidance reflects the flow-through of the second quarter's tax benefit [1][3] Stock Performance - PVH shares declined by 6.24% to$ 97.94 at the time of publication [6]