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Hold Rating on PVH Amid Margin Pressures and Mixed Regional Performance

Hold Rating on PVH Amid Margin Pressures and Mixed Regional Performance

In a report released yesterday, Christopher Nardone from Bank of America Securities maintained a Hold rating on PVH (PVHResearch Report), with a price target of $86.00.

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Christopher Nardone has given his Hold rating due to a combination of factors including PVH’s recent financial performance and future outlook. The company reported a slight increase in sales, which was offset by lower margins and higher SG&A expenses, leading to a modest beat on EPS estimates. Despite the sales growth in regions like the Americas and EMEA, challenges in APAC and licensing impacted overall performance.
Management’s decision to lower the EPS guidance for fiscal 2025 reflects concerns over margin pressures, influenced partly by tariffs. The guidance for the second quarter also fell below expectations, although PVH has a history of surpassing conservative forecasts. The valuation appears to balance short-term margin challenges with positive sales trends, leading to the Hold recommendation as the market assesses PVH’s ability to manage costs and drive sales growth effectively.

In another report released on June 2, Citi also maintained a Hold rating on the stock with a $94.00 price target.

PVH’s price has also changed moderately for the past six months – from $112.860 to $80.810, which is a -28.40% drop .

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