BofA Maintains Hold Rating on PVH Corp. (PVH), Sets $86 PT

In a report released on June 4, BofA analyst Christopher Nardone maintained a Hold rating on PVH Corp. (NYSE:PVH) with a price target of $86.00. The rating update followed the company’s release of its fiscal Q1 2025 results on the same day, with revenue growing 2% to $1.984 billion compared to the same period last year.

The analyst based the rating on PVH Corp.’s (NYSE:PVH) future outlook and recent financial performance, stating that it reported a minute fall in sales. This was, however, offset by higher SG&A expenses and lower margins, which resulted in a modest EPS beat. The company reported a non-GAAP EPS of $2.30 in fiscal Q1 2025, which surpassed guidance of $2.10 to $2.25.

A customer trying on a sports jacket in-store, showcasing the company’s sportswear range.

Nardone highlighted that while regions such as America and EMEA experienced sales growth, the company’s overall performance was negatively impacted by challenges in APAC and licensing. Management decided to lower the EPS guidance for fiscal 2025 to the $10.75 – $11.00 range on a non-GAAP basis compared to a range of $12.40 – $12.75 previously.

The analyst reasoned that this drop reflects margin pressure concerns, somewhat influenced by tariffs. PVH Corp. (NYSE:PVH) also reduced EPS guidance for fiscal Q2 2025 to the $1.85 – $2.00 range on a non-GAAP basis. However, Nardone stated that the company has a history of exceeding conservative forecasts.

According to the analyst, the valuation appears to mitigate short-term margin challenges through positive sales trends, which supports the Hold rating as the market assesses PVH Corp.’s (NYSE:PVH) potential to drive sales and manage costs.

PVH Corp. (NYSE:PVH) is a luxury fashion company that operates Tommy Hilfiger and Calvin Klein brands.

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Disclosure: None.