Skip to Content
Morningstar
Get 14 Days Free

PVH Corp PVH

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Strong International Sales Lift No-Moat PVH in Q2; Shares Fairly Valued

David Swartz Equity Analyst

Analyst Note

| David Swartz |

Like others in the apparel industry, no-moat PVH reported stellar sales and profit margins in 2021’s second quarter. Unlike most others, however, its European operations outperformed its North American business, which continues to be negatively affected by low international tourism (typically 30%-40% of North America sales). We think this bodes well for PVH in the long term as its earnings potential should improve when its North America sales recover and its strategic initiatives (including a faster supply chain, fewer products, and higher pricing) take hold. For now, we intend to lift our 2021 adjusted EPS estimate of $6.84 by roughly 25% to reflect the results and company guidance of $8.50. This change should result in a mid-single-digit percentage increase in our $117 fair value estimate, which is close to the current share price after today’s low-teens percentage move.

Read Full Analysis

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 Jul 31, 2021
Fiscal Year End Jan 30, 2022
Stock Type Cyclical
Employees 40,000

Related

Our Picks
33 Undervalued Stocks for the Second Quarter
Here are our analysts' top ideas in each sector for the coming quarter.
Susan Dziubinski
Quarter-End Insights
Travel and Leisure Stocks Bounce Back
Consumer cyclical stocks are overvalued.
Erin Lash
Stock Analyst Update
Solid 1st-Quarter Sales Growth for PVH
We're not planning much change to our fair value estimate for the narrow-moat firm.
Dan Wasiolek
Stock Analyst Update
PVH's Story a Good One, but Shares Fairly Priced
The narrow-moat apparel maker capitalized on strong consumer demand during the latest quarter.
Bridget Weishaar
Stock Strategist
Margin Gains in Store for Hanes
Improved profitability should follow the apparel maker's return to revenue growth.
Bridget Weishaar
Our Picks
3 Stocks With Great Prospects in the Retail Bargain Bin
As stocks of traditional retailers continue to founder, investors are underappreciating these versatile brands.
Karen Wallace
US Videos
Friday Five: Bond Market Volatility Is No Surprise
Rockiness in global bond markets is in the cards as central banks' extraordinary measures continue. Plus, value in the auto sector, deal news, and more.
Jason Stipp
Stock Strategist
Calvin Klein Recovery Playing Out in First Quarter at PVH
Even with a boost in shares on first-quarter results, PVH stock trades at an attractive margin of safety.
Bridget Weishaar
US Videos
4 Trends in Apparel Retail
Morningstar retail analyst Bridget Weishaar discusses the main drivers of performance in the sector and shares several picks.
Bridget Weishaar
Stock Strategist
Strong Brands Widen VF's Moat
We think the apparel manufacturer is an attractive investment opportunity.
Bridget Weishaar
Stock Strategist
Is the Market Underestimating PVH?
We think now may be a good time for investors to try on this apparel manufacturing stock.
Bridget Weishaar
Stock Strategist Industry Reports
All Dressed Up and Ready to Go
Apparel manufacturers are solidifying their brand identities and cost efficiencies to build moats.
Bridget Weishaar
Quarter-End Insights
Consumer Cyclicals: E-Commerce Hits an Inflection Point
As consumers rapidly embrace online and mobile commerce, traditional retailers are scrambling to refine their strategies.
Bridget Weishaar
Stock Strategist
PVH Is Dressed for Success
The apparel maker has built a narrow moat with a portfolio that’s diverse by brand, geography, and channel.
Bridget Weishaar
Stock Strategist
M&A Market Awaits Clearer Economic Signals
The means and motives for deals are in place, but macroeconomic fears will likely keep the M&A market in waiting.
R.J. Hottovy
Quarter-End Insights
Our Outlook for Consumer Cyclical Stocks
While the U.S. economy still faces headwinds, we're projecting growth in 2011.
Peter Wahlstrom
Stock Strategist Industry Reports
We Think Carter's Has Value in its Pockets
Despite near-term headwinds, we think Carter's long-term prospects are bright.
Zoe Tan
Quarter-End Insights
Our Outlook for Consumer Stocks
Consumers show more signs of life, and most of the sector prices are in a full recovery.
Joel Bloomer
US Videos
What's the Deal on the Friday Five?
Morningstar markets editor Jeremy Glaser dishes on the deals of the week, including hotel sales, health-care M&A, and apparel action.
Jason Stipp
Stock Strategist Industry Reports
Which Apparel Brands Will Stay on the Shelves?
Apparel makers will have to fight hard to keep their brands relevant to consumers.
Zoe Tan

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.