Robert Way/iStock Editorial via Getty Images PVH Corp. ( NYSE: PVH ) is a fashion conglomerate. The company owns the Calvin Klein and Tommy Hilfiger brands.
This article covers the company's 1Q24 results and earnings call . The results showed revenues down 10%, particularly in wholesale, Europe, and Tommy Hilfiger. This was expected based on the company's previous guidance, and PVH beat consensus in revenue and EPS.
On a more positive note, margins were up, and EBIT was up compared to the same quarter last year despite lower sales. The company raised its EPS guidance for the year to $11 to $11.25.
This is also my first article on PVH. I believe the company has several quality characteristics: high brand equity, a good focus on intangibles, a diversified global revenue base, and a good strategy for this challenging macroeconomic period. On the other hand, its financial leverage is a little high, and the company seems to have exhausted its growth avenues.
In terms of valuation , I think PVH's is attractively priced. The company trades at a P/E of 11x on the low range of its FY24 guidance. This is generally an attractive multiple for a company of PVH's characteristics.
Furthermore, the company's earnings have room for improvement if the macroeconomic conditions improve, particularly in Europe. Challenged 1Q24 results, in line with expectations PVH's results for 1Q24 were not good, with revenues down 10%. About 3% of that decrease was generated by the sale of a group of small bra.
