Calvin Klein Owner PVH Has Strong Brand Health & Ability To Drive Margin Expansion, Says Analyst

Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on the shares of PVH Corp PVH with a price target of $90.
PVH will report fourth-quarter results on Monday, March 27, after the market close.
For Q4, the analyst looks for EPS of $1.65 versus $2.84 last year, versus the consensus of $1.67 and company guidance of $1.65.
On the topline, the analyst forecasts a sales decline of 4.0% to $2.33 billion, as compared to guidance for a 4% decrease and the consensus of $2.36 billion.
Below the topline, the analyst looks for a gross margin contraction of 200 bps to 56.3%. The analyst estimates the gross margin contraction will be offset by expense leverage, resulting in a broadly flat 4Q22 operating margin of 7.1%, above the consensus estimate for a 20-bp contraction to 7.0%.
PVH has begun to see signs of easing across its supply chain, and the focus is on improving the supply chain and building a proven demand and data driven operating model.
The analyst remains encouraged by PVH's previous announcement to extend license agreements with G-III Apparel Group, LTD. GIII for Calvin Klein (CK) and Tommy Hilfiger (TH) through 2025-2027 with plans to bring these core categories in-house upon expiration, giving the company greater control over its brands and providing incremental opportunities to drive growth longer-term in the North American market.
The analyst continues to see strong underlying brand health and the ability to drive margin expansion through greater full price sales and controlling expenses over time.
Price Action: PVH shares are trading higher by 2.12% at $74.05 on the last check Tuesday.

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