# PVH (PVH)

Sector: Apparel & brands

| Field | Value |
|---|---|
| Price | $84.68 |
| Fair value (Analysts) | $128.00 |
| Discount to fair value | 33.8% |
| Fair value uncertainty (Analysts) | High |
| Economic moat (Analysts) | None |
| LSEG analyst rating (1 strong buy to 5 strong sell) | 2.36 |
| Data as of | 2026-10-16 |
| Next earnings | 2026-12-02 (estimate) |

## In short

The market doubts that Calvin Klein and TOMMY HILFIGER can grow while Europe and wholesale stay weak, and steady direct sales with a stable EMEA through 2027 can close the gap.

## Themes and gap

- Themes: Weak consumer (weak-consumer), Tariffs and trade (trade-tariffs), New management (management-change)
- Gap type: Can close (closable)
- Why: The Q3 2026 report in December and the 2027 outlook show whether direct sales growth offsets weak wholesale and EMEA demand.

## About

PVH is an apparel company based in New York that owns two global brands, Calvin Klein and TOMMY HILFIGER. It sells clothing, underwear, jeans and accessories through its own stores and websites, through department stores and other wholesale customers, and through licensees. It reports three regions: Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC). PVH is moving some product categories that licensees made in North America back in house, and it expects these license transitions to be complete by the end of 2026.

## Thesis

The market prices PVH for weak demand in Europe and in wholesale, and for doubt that its two brands can grow again. In Q2 2026, revenue fell 3%, EMEA revenue fell 6% and wholesale revenue fell 6%. PVH links the weak EMEA demand to the prolonged effects of the conflict in the Middle East. It also recorded a $439 million goodwill impairment in Q2 2026. Its Q2 non-GAAP EPS of $3.70 included about $1.80 per share from tariff refunds, so the underlying profit was much lower. For the gap to close, PVH must reach its 2026 outlook of about flat revenue, a non-GAAP operating margin of about 8.8% and non-GAAP EPS of $11.80 to $12.10. Direct-to-consumer sales must keep growing, Calvin Klein wholesale shipments must return in the second half of 2026, and EMEA must stabilize. PVH must also buy back at least $300 million of shares in 2026, as it plans. The Q3 2026 report, expected in early December 2026, is the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a longer period of weak consumer demand in Europe.

## Checkpoints

- Dec 2, 2026 (estimate): Q3 2026 earnings: EMEA and margin. Status: Pending. Watch: Non-GAAP EPS within the $2.50 to $2.65 guidance and a kept full-year outlook pass; a cut to the $11.80 to $12.10 outlook fails.
- Mar 2027 (estimate): Full-year 2026 results and the 2027 outlook. Status: Pending. Watch: A 2027 outlook with revenue growth and a higher operating margin passes; another year of falling revenue fails.

## Balance sheet

- Cash: $966M
- Debt: $2.2B
- Net debt: $1.3B
- Debt due within 12 months: $12M

PVH has moderate debt and more cash than a year ago. At August 2, 2026, debt was $2.25 billion: long-term debt of $2.24 billion and current maturities of $12 million. Cash was $966 million, up from $249 million a year earlier. In June 2026, PVH signed a new credit agreement with a €400 million term loan and a $1.5 billion revolving credit facility, both due in June 2031, and it had no short-term borrowings at August 2, 2026. PVH expects net interest expense of about $70 million in 2026. The quarterly dividend is $0.0375 per share.

As of 2026-08-02.

Sources:

- https://www.sec.gov/Archives/edgar/data/78239/000007823926000055/ex99120262q8k.htm
- https://www.sec.gov/Archives/edgar/data/78239/000121390026072861/ea0295926-8k_pvh.htm

## Recent events

- 2026-09-02: PVH reported Q2 2026 results. Revenue fell 3% to $2.097 billion. EMEA revenue fell 6%, Americas revenue fell 1% and APAC revenue rose 3%. GAAP EPS was a loss of $2.23 because of a $439 million goodwill impairment, and non-GAAP EPS was $3.70, including about $1.80 per share from tariff refunds. PVH kept its 2026 outlook of about flat revenue, a non-GAAP operating margin of about 8.8% and non-GAAP EPS of $11.80 to $12.10.
- 2026-09-02: For Q3 2026, PVH expects revenue to fall by a low single-digit percentage, a non-GAAP operating margin of about 7.5% and non-GAAP EPS of $2.50 to $2.65, down from $2.83 a year earlier. It made no share repurchases in the first half of 2026 but expects to buy back at least $300 million of shares in 2026.
- 2026-08-05: PVH declared a quarterly dividend of $0.0375 per share, paid on September 23, 2026.
- 2026-07-14: PVH named Alexis Rollier, the global CFO and COO of Sephora, as its Chief Financial Officer from early September 2026. Melissa Stone had served as Interim CFO since January 1, 2026.
- 2026-06-24: PVH signed a new credit agreement with a €400 million term loan and a $1.5 billion revolving credit facility, both due in June 2031. It used the term loan to repay its old credit agreement.

## Risks

- High: EMEA demand is weak, and PVH links it to the effects of the conflict in the Middle East. A longer slowdown in Europe lowers revenue and margins.
- Medium: Wholesale revenue fell 6% in Q2 2026, and the North America license transitions lower licensing revenue in 2026. If wholesale customers keep cutting orders, revenue keeps falling.
- Medium: Tariffs raise product costs. The $107 million of tariff refunds in Q2 2026 do not repeat, and new tariffs can lower the gross margin.
- Low: The goodwill impairment of $439 million in Q2 2026 shows that the value of parts of the business fell. A new CFO joined in September 2026.

## Links

- Page: https://picks.kamadorueda.com/company/PVH/
- History of changes: https://picks.kamadorueda.com/company/PVH/history/
- JSON with full history: https://picks.kamadorueda.com/data/company/PVH.json

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