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On Friday, Citi analyst Paul Lejuez increased the price target for PVH Corp (NYSE:PVH) to $94.00, up from the previous $68.00, while keeping a Neutral stock rating. Lejuez anticipates that the company’s first-quarter earnings per share (EPS) will be marginally above the consensus and guidance. The analyst has modeled a slight 0.2% decrease in sales, which is more optimistic than the company’s guidance of flat to -2% and the consensus of -1.1%. The EPS forecast by Citi is set at $2.32, compared to the guidance range of $2.10 to $2.25 and the consensus of $2.23. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in PVH’s performance.
The market is expected to be looking for a quarter in line with these projections. PVH Corp’s management previously reported their fourth-quarter results on April 1, with guidance for the current quarter that accounted for a weak February and a slightly improved March. However, trends across the retail sector suggest that April’s performance was at the higher end of management’s expectations. The company maintains impressive gross profit margins of 59.4%, demonstrating strong pricing power and operational efficiency.
Despite anticipating management to lower, but not withdraw, the fiscal year 2025 guidance due to tariff headwinds impacting gross margins, Lejuez believes that the market expectations for PVH Corp remain reasonable. Since April 2, the stock has seen a 12% increase, outperforming the group median of 8%, yet it still trades at approximately 6 times the forecasted fiscal year 2025 EBITDA. This is notably lower compared to Ralph Lauren Corp (NYSE:RL), which trades at 12 times its expected EBITDA.
Citi’s revised price target reflects a belief that the risk/reward balance leans slightly in favor of investors as they approach the company’s earnings call. The analyst’s comments highlight an overall cautious yet slightly optimistic outlook for PVH Corp’s stock performance in the near term.
In other recent news, PVH Corp reported a strong performance for Q1 2025, with earnings per share (EPS) of $3.27, surpassing the forecast of $3.24. The company’s revenue reached $2.37 billion, slightly above the expected $2.34 billion. This earnings beat was accompanied by a record high gross margin of 59.4%, showcasing PVH Corp’s robust financial health and operational efficiency. In addition to these results, UBS analyst Jay Sole maintained a Buy rating on PVH Corp, raising the price target to $160, citing the company’s brand strength and long-term growth potential. Meanwhile, Citi analysts increased their price target to $83, maintaining a Neutral stance, acknowledging PVH’s solid performance despite potential risks in China and tariff uncertainties. In leadership news, PVH Corp appointed David Savman as the new Global Brand President of Calvin Klein, succeeding Eva Serrano, who will remain as an advisor through the year-end to ensure a smooth transition. Savman, who has been instrumental in enhancing operations and commercial strategies, is expected to focus on strengthening Calvin Klein’s product offerings and market presence. These developments reflect PVH Corp’s strategic initiatives and continued focus on growth in a challenging market environment.
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