- 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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