Welcome to Extreme Investor Network, where we provide expert insights into the world of investing. Today, we’re discussing the latest news on PVH, the parent company of popular brands Calvin Klein and Tommy Hilfiger.
According to UBS analyst Jay Sole, PVH is poised for strong earnings ahead. Sole has maintained a buy rating on the clothing maker and raised his price target by 9% to $174, representing a potential upside of 43%. While the stock has seen a slight decline this year, it has shown a 7% increase in June.
Investor optimism has been fueled by PVH’s recent earnings report, where the company exceeded expectations for the fiscal first quarter and provided strong guidance for future earnings. Sole highlighted PVH’s “high-quality” earnings beat, which has increased his confidence in the company’s long-term growth potential.
Looking ahead, Sole anticipates that PVH’s sales will accelerate over the next four quarters, with growth turning positive in FY25. The company’s shift towards direct-to-consumer and international sales, along with cost recovery initiatives, is expected to drive further growth and boost earnings. Additionally, PVH’s gross margin is projected to reach a new peak as it focuses on improving product quality and expanding its market reach.
Overall, Sole remains bullish on PVH, expecting five-year earnings growth at a compound annual growth rate of 10.5%. He has also raised his earnings per share estimate for FY26 to 4%, signaling continued growth and profitability for the company.
At Extreme Investor Network, we believe that PVH’s strong brand portfolio and strategic initiatives position it for success in the ever-evolving retail industry. Stay tuned for more updates and insights on top investing opportunities.