On Wednesday, Citi maintained its Neutral rating on PVH Corp (NYSE:PVH), with a steady price target of $120.00. The firm projected that the company's first-quarter sales and earnings per share (EPS) would align with current consensus and guidance. Citi's sales forecast indicates a 10.5% decline, closely aligned with guidance predicting an 11.0% drop and consensus figures at 10.6%. The firm also estimated an EPS of $2.17, which is slightly above the company's guidance of $2.15 and the consensus of $2.16.
The guidance provided by PVH Corp's management last quarter was notably below the consensus at that time and was informed by a year-to-date slowdown observed by the company. Since the earnings report was released on April 1, capturing two months of the first quarter, Citi believes the weaker trends were already reflected in their guidance, and does not anticipate a significant downturn in April.
Citi also anticipates that PVH Corp will reaffirm its full-year 2024 guidance of $10.75 to $11.00, which is in line with the consensus estimate of $10.96. Despite the stock's 22% drop following the last earnings release, it has since rebounded, showing a 7% increase, suggesting a mild improvement in investor sentiment.
However, Citi does not foresee any major surprises like those witnessed in the fourth quarter and, consequently, does not expect the stock to experience significant movement on the day of the announcement.
InvestingPro Insights
Investors looking into PVH Corp's current financial health can consider the latest metrics from InvestingPro. With a market capitalization of $6.5 billion and a P/E ratio standing at 10.45, the company presents an interesting value proposition. The adjusted P/E ratio for the last twelve months as of Q4 2024 is even more attractive at 9.19, signaling potential underpricing by the market. Additionally, the revenue for the same period is reported at $9.217 billion, with a modest growth rate of 2.14%, showcasing steady financial progress.
Two notable InvestingPro Tips for PVH Corp highlight the company's shareholder-friendly practices. First, management's aggressive share buyback program is a strong sign of confidence in the company's value. Second, the high shareholder yield, combined with a record of maintaining dividend payments for 54 consecutive years, underscores PVH's commitment to returning value to investors. For those keen on further analysis, InvestingPro offers additional tips on PVH Corp, which can be accessed with a special promotion. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can find 4 more InvestingPro Tips to guide your investment decisions.
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