PVH Earnings: Results Show PVH+ Progressing Despite Subdued Holiday Outlook; Shares Undervalued

No-moat PVH delivered sales and earnings above our expectations in 2024's third quarter. Its fourth-quarter profitability is expected to be pressured by a promotional holiday sales environment and higher shipping costs, but we think the PVH+ strategy for brand elevation and expense efficiency is moving along. We do not expect to make a material change to our $145 fair value estimate, and we rate shares as attractive. Separately, we expect to change our uncertainty rating on PVH to Very High from High based on our quantitative model and more consistent profitability since it implemented the PVH+ plan and sold most of its heritage brands.