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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

PVH Opens 2021 With Strong International Sales; Outlook Appears Reasonable; Shares Fairly Valued

David Swartz Equity Analyst

Analyst Note

| David Swartz |

Despite the impact from COVID-19 in some regions, no-moat PVH outperformed our sales and earnings estimates in 2021’s first quarter on solid sales momentum in Europe and China. However, unlike some peers, it did not experience a sizable boost in sales in the United States from government stimulus and increasing vaccinations as international tourism (normally 30%-40% of U.S. sales) remained very slow. We intend to lift our $113 fair value estimate by a mid-single-digit percentage on the first-quarter results but would look for a more attractive entry point.

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Company Profile

Business Description

PVH designs and markets branded apparel in more than 40 countries. Its key fashion categories include men’s dress shirts, ties, sportswear, underwear, and jeans. PVH’s leading designer brands, Calvin Klein and Tommy Hilfiger, generate nearly 90% of its revenue. PVH also owns several smaller brands, including Izod, Van Heusen, and Arrow, and licenses brands from third parties. PVH distributes its clothing wholesale to retailers and through company-owned stores. The company traces its history to 1881 and is based in New York City.

Contact
200 Madison Avenue
New York, NY, 10016
T +1 212 381-3500
Sector Consumer Cyclical
Industry Apparel Manufacturing
Most Recent Earnings Apr 30, 2021
Fiscal Year End Jan 30, 2022
Stock Type Cyclical
Employees 40,000

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