PVH (PVH) Stock Forecast & Price Target

PVH is attractive because its valuation is unusually low at about 6x to 6.5x earnings despite owning two globally recognized brands, Calvin Klein and Tommy Hilfiger, that drive nearly all revenue and support a wide omnichannel footprint across more than 40 countries. The latest quarter showed resilience, with revenue down 3% but adjusted EPS of $3.70 well above the $3.00-$3.10 guide, while 1Q26 revenue rose 2% to $2.0B, gross margin held at 58.6%, inventory fell 5% to $1.5B, and DTC growth of 6% offset weaker wholesale. Management’s buyback plan for $300+ million, license takebacks through FY26, and expected margin help from tariff refunds and improved EMEA and APAC trends create multiple paths to higher EPS and better risk/reward.

PVH is facing a material fundamental slowdown because EMEA, nearly 50% of sales, was down 5% to 6% as conflict-driven pressure in the Middle East hurt consumer sentiment, wholesale demand, and tourism, while higher promotional activity weighed on margins. Wholesale was down high-single digits and Spring order books for 2027 were down mid-single digits, signaling that weakness could persist rather than normalize quickly, even as DTC only provided limited offset with low-single-digit declines. With FY26 now expected to be down mid-single digits in EMEA, the combination of top-line pressure, gross margin drift, and SG&A deleverage supports a bearish view on earnings power.