PVH Earnings: Signs of Progress Under PVH+ Plan but Outlook Disappointing; Shares Very Undervalued

No-moat PVH closed fiscal 2024 with sales and profitability that slightly exceeded our expectations. The firm also announced a $500 million accelerated share repurchase plan after a similar level of repurchases in 2024. On the downside, its guidance for 2025 was uninspiring as the firm faces uneven consumer demand and delays in new Calvin Klein merchandise. Indeed, as we had long anticipated, PVH is going to fall far short of its original 2025 PVH+ targets ($12.5 billion in sales, 15% operating margin). We expect to cut our $145 fair value estimate by a low-single-digit rate given the outlook, but shares remain very attractive. After having fallen nearly 40% year to date, shares rallied by a midteens percentage on April 1 on the earnings report and buyback plan.