PVH (PVH) Stock Forecast & Price Target

PVH has demonstrated a strong market performance, with global men’s underwear sales rising 14% year-over-year, driven by the success of its Cotton Stretch franchise and effective marketing campaigns. The company also reported healthy growth in its core categories, with Tommy menswear increasing by 3% and Calvin underwear rising by 6% year-over-year, supported by seasonal product innovations. Furthermore, the improved inventory availability across all regions and channels indicates that PVH is effectively aligning its offerings with consumer demand, positioning the company favorably for future growth.

PVH is facing significant challenges as its gross margin is projected to decline by approximately 175 basis points year-over-year, despite a slight sequential improvement expected from the stabilization of operational issues within the Calvin Klein brand. Additionally, sales in the Asia Pacific region are anticipated to decline in the low single-digit range, reflecting a notable contraction of 1.4% in reported revenue and a 2.9% decline in constant currency, which is consistent with recent trends. These factors suggest ongoing financial pressures that may impact PVH's overall performance and future growth prospects.