PVH (PVH) Stock Forecast & Price Target

PVH has experienced notable growth in its key fashion categories, particularly with global men's underwear sales increasing by 14% year-over-year, indicative of successful product offerings such as the Cotton Stretch franchise. Additionally, core category performances remained strong, with Tommy menswear up 3% and Calvin underwear rising by 6% year-over-year, demonstrating effective sales execution and seasonal product innovations. Lastly, inventory management has shown improvement across all regions, maintaining alignment with consumer demand and ensuring availability of fresh merchandise, which bodes well for future sales and overall financial health.

PVH is facing a deterioration in its operating margin, projected at 8.0% for the third quarter, which marks a decline of 250 basis points year-over-year from the previous year's margin of 10.5%. The company's gross margin is also expected to decline by about 175 basis points year-over-year, despite a sequential improvement over the first half of the year, indicating ongoing operational challenges, particularly within its Calvin Klein brand. Additionally, revenue contributions from the Asia Pacific region, accounting for 16% of total revenue, have shown a decrease of 1.4% year-over-year, with further declines anticipated, highlighting ongoing sales softness, especially in China.