PVH Corp PVH

Morningstar Rating
$97.51 +2.52 (2.65%)
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Company Report

PVH Making Progress Toward Its Goals Despite Difficult Market Conditions

Once known as a producer of midtier men's shirts, PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. More recently, it disposed of most of its noncore labels to focus on Calvin Klein and Tommy Hilfiger. While the firm lacks diversification, we think it was prudent to focus on its highest-potential properties and returning capital to shareholders through share repurchases. However, although they are popular worldwide, we do not believe that either of PVH’s major brands has the pricing power or competitiveness to provide an economic moat.

Price vs Fair Value

PVH is trading at a 636% premium.
Price
$94.99
Fair Value
$681.00
Uncertainty
Very High
1-Star Price
$785.63
5-Star Price
$51.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Calvin Klein and Tommy Hilfiger have proven global strength, with the potential for higher sales in Asia, Europe, and the Americas. PVH has taken greater control of its brands through acquisitions, allowing improved marketing and pricing.

Bears

The apparel industry is struggling with uneven consumer demand due to inflation. PVH and its licensees are exposed to struggling North America department stores and tourist-oriented outlets.

News

Trading Information

Previous Close Price
$94.99
Day Range
$96.2898.67
52-Week Range
$69.27141.15
Bid/Ask
$89.96 / $99.98
Market Cap
$5.44 Bil
Volume/Avg
1.1 Mil / 797,172

Key Statistics

Price/Earnings (Normalized)
7.86
Price/Sales
0.63
Dividend Yield (Trailing)
0.16%
Dividend Yield (Forward)
0.16%
Total Yield
11.50%

Company Profile

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. Its two designer brands, Calvin Klein and Tommy Hilfiger, now generate practically all its revenue after its recent disposition of most of its smaller brands. PVH operates e-commerce sites and about 1,500 stores, licenses its brands to third parties, and distributes its merchandise through department stores and other wholesale accounts. The firm traces its history to 1881 and is based in New York City.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Small Value
Total Number of Employees
29,000

Competitors

Valuation

Metric
PVH
GAP
URBN
Price/Earnings (Normalized)
7.8610.0510.60
Price/Book Value
1.022.641.53
Price/Sales
0.630.510.66
Price/Cash Flow
5.746.034.84
Price/Earnings
PVH
GAP
URBN

Financial Strength

Metric
PVH
GAP
URBN
Quick Ratio
0.550.670.63
Current Ratio
1.241.491.46
Interest Coverage
10.259.92
Quick Ratio
PVH
GAP
URBN

Profitability

Metric
PVH
GAP
URBN
Return on Assets (Normalized)
6.36%7.60%8.20%
Return on Equity (Normalized)
13.97%32.54%16.08%
Return on Invested Capital (Normalized)
8.93%10.28%10.59%
Return on Assets
PVH
GAP
URBN

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