Company Reports

Once known as a producer of midtier men's shirts, multibrand apparel and accessories marketer PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. In recent years, it has sold most of its smaller brands to focus on Calvin Klein and Tommy Hilfiger. Although these two brands are well-known worldwide, we do not believe that either has sufficient pricing power or competitiveness to provide an economic moat for PVH.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it divested most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it is prudent to focus on its highest-potential properties and return capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH's second-quarter sales fell 3% on flat Tommy Hilfiger sales (54% of total) and a 7% Calvin Klein sales decline (44%). Including a 510-basis-point tariff refund benefit that was partially offset by increased marketing spending, PVH's adjusted operating margin rose 290 basis points to 11.1%.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it divested most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it is prudent to focus on its highest-potential properties and return capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH's sales rose 2% in the first quarter, with a 3% increase from Tommy Hilfiger (53% of total) and a 1% increase from Calvin Klein (44%). Gross margin was flat at 58.6%, but non-GAAP operating margin fell to 6.5% from 8.1% on planned marketing investments. Non-GAAP EPS fell to $2.01 from $2.30.

Once known as a producer of mid-tier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and return capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH's fourth-quarter sales rose 6%, with a 7% increase from Tommy Hilfiger (55% of total) and 3% increase from Calvin Klein (43%). Gross margin fell 60 basis points to 57.6% due to tariffs, markdowns, and greater wholesale, while non-GAAP operating margin slid 30 basis points to 10%.

Once known as a producer of mid-tier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and return capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH's third-quarter sales rose 2% with increases of 1% and 2% for Tommy Hilfiger (53% of total) and Calvin Klein (44%), respectively. Gross margin fell to 56.3% from 58.4% due to tariffs, promotions, and reduced licensing, and adjusted operating margin dropped to 8.8% from 10.5%.

Once known as a producer of mid-tier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and return capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH achieved 4% revenue growth in 2025's second quarter as sales of Tommy Hilfiger (52% of total) and Calvin Klein (45%) rose 4% and 5%, respectively. Gross and adjusted operating margins fell to 57.7% and 8.2%, respectively, from 60.1% and 9.1% in the prior year.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

PVH reported 2% sales growth in 2025's first quarter on 3% growth from Tommy Hilfiger (53% of total) and flat sales from Calvin Klein (45%). Although its adjusted EPS of $2.30 was above prior guidance of $2.10-$2.25, shares fell 18% on June 5 as the full-year outlook profit was reduced.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

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.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

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.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

Although no-moat PVH’s second-quarter profitability surpassed our forecast, its shares sank by a mid-single-digit percentage on Aug. 28 as difficult market conditions in North America, Europe, and China may weigh on third-quarter sales. Even so, the firm’s 2024 earnings per share guidance is essentially unchanged. As such, we do not expect to make any material change to our $145 fair value estimate, leaving shares very attractive. We think PVH’s valuation is low considering its disposition of most of its low-margin heritage brands, the worldwide appeal of its two major brands, and its potential for better margins and sales growth.

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.