V.F. Corp vs. PVH Corp: Which Stock Will Lead the Apparel Space Next?

Core Insights - V.F. Corporation (VFC) and PVH Corporation (PVH) are leading players in the global apparel industry, each with a strong portfolio of brands and retail expertise [1][2] - Both companies are adapting to changing consumer demands, inflationary pressures, and a focus on sustainability through digital innovation and supply chain agility [2][3] V.F. Corporation (VFC) - VFC is implementing a transformation program called Reinvent, focusing on cost reduction, strengthening the balance sheet, and improving brand performance, particularly for Vans [4][6] - The company has achieved $300 million in gross cost savings and aims for$500-$600 million in operating income expansion by fiscal 2028 [5][6] - VFC targets an adjusted operating margin of at least 10$2 billion and raised free cash flow guidance to $440 million for fiscal 2025 [7] - Despite a solid third-quarter performance, VFC has revised its fourth-quarter revenue guidance to a decline of 4-6% year-over-year [8] PVH Corporation (PVH) - PVH focuses on brand elevation, direct-to-consumer growth, and operational efficiency through its PVH+ Plan, which aims for long-term value via digital acceleration and supply chain agility [10][11] - The company is targeting growth in Asia, particularly China, while maintaining a double-digit EBIT margin in North America [11] - In Europe, PVH aims to reignite growth through product innovation and enhanced marketing strategies [12] - PVH is leveraging digital innovation with AI-powered personalization and partnerships with major platforms like Amazon and Tmall [13] - The Zacks Consensus Estimate for PVH's fiscal 2025 sales and EPS implies year-over-year growth of 0.8% and 7.2%, respectively [14] Comparative Analysis - PVH currently trades at a forward P/E ratio of 6.26X, below the industry average of 12.40X, while VFC trades at a higher multiple of 12.92 [17][18] - PVH's stock has gained 15.3% in the past month, outperforming VFC and the broader industry [19] - PVH is viewed as a more attractive investment due to its disciplined execution of the PVH+ Plan and lower valuation compared to VFC [19][20] - VFC's ongoing operational challenges and transitional phase present execution risks, despite its long-term goals [21][25]