Track market-moving stories before they get noisy

Key Takeaways PVH is advancing its PVH Plan through digital expansion, AI adoption and stronger consumer engagement.PVH is investing in data analytics and generative AI to improve forecasting and customer experiences.PVH continues to strengthen its DTC and e-commerce channels despite tariff and demand headwinds. PVH Corporation (PVH - Free Report) benefits from strength in its core brands, such as Calvin Klein and Tommy Hilfiger, which continue to leverage solid global recognition and strong pricing power across markets. The company is executing a multi-year transformation strategy focused on strengthening brands, accelerating digital capabilities and improving operational efficiency. PVH’s initiatives are largely driven by its “PVH+ Plan,” which aims to generate sustainable growth and enhance profitability.

PVH is also benefiting from the effective execution of its PVH+ Plan, which is designed to accelerate growth by strengthening its core capabilities and deepening consumer connections with its brands. The strategy is centered on five key priorities: enhancing product offerings, increasing consumer engagement, strengthening its presence in the digitally driven marketplace, building a demand- and data-driven operating model and improving efficiencies to support future growth investments.

A key component of PVH’s strategy is accelerating its digital transformation. The company continues to invest in Artificial Intelligence, data analytics and digital platforms to improve demand forecasting, inventory management and customer experiences. Its partnership with OpenAI supports the use of generative AI across areas such as product design, merchandising and marketing.

PVH continued to make progress in strengthening its direct-to-consumer (DTC) and digital channels. The company has significantly enhanced its e-commerce capabilities and omnichannel execution. This is driving higher online traffic, stronger engagement and improved full-price sell-through across channels. PVH is seeing positive momentum in DTC heading into fiscal 2026, with higher spring season sell-through trends across the brands and all the regions. Investments in data analytics, AI-enabled merchandising and DTC capabilities are enhancing consumer insights and personalization.

PVH’s continued expansion in international markets remains an important growth catalyst for it. It has made meaningful progress in streamlining its operations through the divestiture of non-core businesses, allowing for greater management focus and more efficient capital deployment. At the same time, PVH is enhancing its product portfolio through ongoing innovation, while continued investments in product development, digital initiatives and sustainability efforts are supporting its long-term growth objectives.

What’s More on PVH?Although the aforesaid factors highlight optimism on the stock, PVH is not immune to macroeconomic uncertainty, tariff-related headwinds, fluctuations in wholesale demand, soft consumer spending and an intensely competitive environment. Nevertheless, the company is strengthening its competitive advantage, accelerating profitable growth and preparing for long-term success. PVH’s robust strategies, including the PVH+ initiative and expansion efforts, position it well for growth.

Image Source: Zacks Investment Research

Apparently, PVH shares have rallied 19.8% in the past six months against the industry’s decline of 9.1%. The Zacks Consensus Estimate for PVH’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 5.5% and 2.1%, respectively. The estimates for the aforesaid years have moved south in the past 30 days. Hence, analysts remain optimistic on this Zacks Rank #3 (Hold) stock.  

Key Picks in the Consumer Discretionary SpaceDuluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a decline of 11.6% from the year-ago number.

Columbia Sportswear (COLM - Free Report) engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for COLM’s current financial-year EPS is expected to rise 4.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.

Ralph Lauren Corporation (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank #2 (Buy).

RL delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 6.3% from the year-ago number.

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First Graphene Ltd (ASX:FGR, OTCQB:FGPHF, FRA:M11) earlier this week confirmed it had completed the acquisition of USA-based MITO® Material Solutions, with managing director and CEO Michael Bell telling Proactive the transaction had moved quickly and gave the company a stronger commercial platform in the United States.

Bell said First Graphene completed the deal within “sort of five or six days” of signing the agreement, describing the rapid turnaround as a reflection of the motivation shown by both teams. He said it was “a testament to both our team and the MITO® team being pretty motivated to get the deal across the line”.

The acquisition also brings MITO® Material Solutions chief executive officer Haley Marie Keith into First Graphene Ltd (ASX:FGR, OTCQB:FGPHF) as vice president of business development. Bell said Keith would lead US business operations, business development, commercial activity and promotion from Indiana.

For investors, the appointment appears to be an important catalyst in the company’s US expansion strategy. Bell said Keith brought “a huge amount of experience” in the US market, composites and the MITO® Material Solutions portfolio. He described her appointment as “a fairly clear line in the sand” that showed First Graphene Ltd was committed to growing its US business.

Bell said the scale of the US market required a focused approach. Drawing on previous experience, he said companies could not assume one person could represent a business across the entire country, noting that the market was vast and often required a state-by-state focus.

The company is initially looking at opportunities across aerospace, transportation and defence, although Bell said those sectors were likely to move more slowly. In the near term, First Graphene Ltd also intends to build on MITO® Material Solutions’ validation work in commercial sporting goods, where the acquired business already has clients.

Revenue growth and pipeline development were also highlighted. Bell said First Graphene Ltd had recently expanded from five new clients to six, with another footwear company coming across the line in recent days. He added that the time taken to move customers from inquiry to execution or production was speeding up.

Bell said the company had a pipeline approaching 700 opportunities, ranging from early-stage discussions to projects that had been in development for up to three years. He also pointed to a nearer-term group of around 30 to 40 potential clients in areas such as marketing releases and regulatory approvals, which he said could become contributors to revenue over the next six months.

Interview highlights First Graphene Ltd has completed the acquisition of USA-based MITO® Material Solutions within about five or six days of signing the agreement. Michael Bell said the fast completion reflected strong motivation from both the First Graphene Ltd and MITO® Material Solutions teams. MITO® Material Solutions chief executive officer Haley Marie Keith has joined First Graphene Ltd as vice president of business development. Keith will support US business operations, business development, commercial activity and promotion from Indiana. Bell said Keith brings significant experience in the US market, composites and the MITO® Material Solutions portfolio. First Graphene Ltd sees the appointment as a “line in the sand” showing its commitment to expanding in the United States. The company is targeting opportunities across aerospace, transportation, defence and commercial sporting goods. Bell said MITO® Material Solutions has already validated products in commercial sporting goods, giving First Graphene Ltd a base to grow from. First Graphene Ltd has added a sixth client in recent months, including another footwear company. The company has a pipeline approaching 700 opportunities, with 30 to 40 potential clients in later-stage areas such as marketing releases and regulatory approvals.

Proactive: Welcome back to Proactive Investors. I’m your host, Kerry Stevenson. I’ve asked Michael Bell to come back. He is the managing director and CEO of First Graphene Ltd, ASX code FGR. The reason I’ve asked Michael back is that the last time I had him on, which was only a couple of weeks ago, we were talking about the acquisition of MITO® Material Solutions. That has now closed. The deal is done, but First Graphene Ltd has also made its first hire in the United States. This looks like rapid global expansion. Michael, congratulations on closing the deal. We talked about the deal last time. Talk to us about closing the deal. It was a pretty quick turnaround.

Michael Bell: Yes, we managed to get it closed within sort of five or six days from signing the agreement. It was really a testament to both our team and the MITO® team being pretty motivated to get the deal across the line and get into it. We got it wrapped up the other week, and we also made our first hire as part of that deal.

Haley Marie Keith, who is the CEO of MITO® Material Solutions, has come across to First Graphene Ltd. She will head up our business operations, business development, commercial and promotion within the United States. She is based out of Indiana and brings a huge amount of experience in both the US market and composites, but also the MITO® portfolio. She will really help us drive that forward.

It is also a fairly clear line in the sand of our intent to grow the US business. There is huge opportunity there. As we immerse ourselves more, both in the MITO® materials as well as the First Graphene PureGRAPH line, we start to understand the true potential of the United States. It is a line in the sand saying we are committed to growing that side of the business.

Proactive: Is the US market a tough one to break into, Michael? I know it is a big market. It is huge, isn’t it?

Michael Bell: It is big. I have had previous experience of trying to grow businesses in the United States out of a company that I was a partner in, in New Zealand. That taught us some very hard lessons in terms of the size of the market. Where you think one person can represent you across the United States, you need to focus on a state basis because the market is so vast.

How I apply that to Haley Marie Keith is that she has a big role and a very broad opportunity. It will take some really critical focus on certain applications, certain client bases and so on.

Proactive: Talking about focus, are you going to focus more on government or are you going to focus more on private?

Michael Bell: It is a good question. The products that we have acquired from MITO® Material Solutions, and the ones that we see proving the most successful and having the fastest timeline, would be aerospace, transportation and defence. Those are probably slower-moving industries.

What MITO® Material Solutions has done is take its products and validate them in the commercial sporting goods segment. It has clients in those spaces and we have a pipeline to expand that. We will probably continue focusing on that, pushing that and growing the sporting goods side, while at the same time advancing the pipeline that MITO® Material Solutions has established in bigger industries like aerospace, transportation and defence.

Proactive: Before we finish up, it is important for our audience and investors to know that First Graphene Ltd has a very full pipeline, which means growth is happening. The company also already has revenue generation. What is that looking like?

Michael Bell: It is strong. It is growing. We mentioned previously, I think in our last call, that we had added five clients in the last couple of months. That has now expanded into a sixth client. We got another footwear company across the line just in the last few days.

That tax rate, or that time to get people from inquiry to executing or getting it into production, is speeding up. We have a big pipeline, somewhere up towards 700 different opportunities, somewhere between a week and three years deep in development. We have also got that really good next wave of clients, sort of 30 or 40 of them, that are in marketing releases, regulatory approvals and that sort of phase. Those are coming on and are our next contributors to revenue over the next six months.

Proactive: The US market is a major focus. MITO® Material Solutions has now been acquired, and the deal is done. More importantly, MITO® Material Solutions CEO Haley Marie Keith is joining First Graphene Ltd as vice president of business development as the company strikes out into a big US market. First Graphene Ltd’s ASX code is FGR. Michael is taking strides to expand and First Graphene Ltd is generating revenue. Michael, good to chat. Talk to you next time.

Michael Bell: Thanks so much.

Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has raised A$4 million to support commercial licensing activity, clinical trials and regulatory-enabling work for its synthetic anti-infective pipeline.

The placement, priced at A$0.40 per share, comprises 10.0 million new fully paid ordinary shares and was supported by new and existing institutional, sophisticated and professional investors.

Recce will also launch a share purchase plan (SPP) to allow eligible shareholders to subscribe for up to A$30,000 worth of new shares on the same terms as the placement, targeting up to an additional A$4 million before costs for a prospective total of $8 million..

Funds directed to licensing and clinical milestones The money from the placement and SPP will be used to strengthen Recce’s balance sheet for commercial licensing with a leading Middle Eastern pharmaceutical company, including initiatives to support a potential commercial agreement.

The company has allocated A$3.2 million to this area, alongside A$2 million for clinical trials targeting significant unmet medical needs.

This includes completion of a Phase 3 diabetic foot infections (DFI) registrational topical clinical trial in Indonesia, a Phase 3 DFI registrational topical clinical trial in Australia for the US Food and Drug Administration, and continuation of the US Department of War Burn Wound Program.

A further A$2 million will be used for activities enabling Investigational New Drug applications to the FDA and Indonesia’s BPOM, while A$800,000 will support general working capital and offer costs.

Following the offer, Recce expects pro forma cash liquidity before offer costs of about A$29.5 million, including anticipated additional funding from an estimated A$7.5 million R&D rebate and A$10 million in non-dilutive capital through an R&D advance.

Shareholder participation and option structure Participants in the placement and SPP will receive 1 free-attaching unlisted option for every two new shares issued.

The attaching options will have an exercise price of A$0.60 and expire on June 30, 2027. If exercised, holders will receive 1 fully paid ordinary share and 2 free unlisted piggyback options for each attaching option exercised.

The piggyback options will have an exercise price of A$1.00 and expire on June 30, 2028.

Recce said the offer of the attaching options and piggyback options would be made under a prospectus to facilitate secondary trading of shares issued on exercise, subject to ASX confirmation that the structure complies with Listing Rules.

“Exciting time” for Recce

Recce CEO James Graham said the capital raising came as the company progressed commercial and clinical milestones.

“The capital raising comes at an exciting time for the Recce business, having recently signed a non-binding term sheet with a leading Middle Eastern Pharmaceuticals Company and ahead of interim data readouts in Indonesia which is a positive step towards the potential commercialisation of R327G,” Graham said.

Anti-infective pipeline Recce is developing a new class of synthetic anti-infectives designed to address antibiotic-resistant infections.

Its pipeline includes RECCE® 327 as an intravenous and topical therapy for serious and potentially life-threatening bacterial infections, RECCE® 435 as an oral therapy for bacterial infections and RECCE® 529 for viral infections.

Recce's anti-infectives use multi-layered mechanisms of action intended to overcome resistance pathways used by bacteria and viruses.

PVH Corp. (NYSE:PVH) was downgraded to 'Underperform' from 'Neutral' by Bank of America, which also lowered its price objective to $70 from $90, citing the apparel company's significant exposure to Europe, the Middle East and Africa (EMEA) and expectations that a recovery in the region could take longer than anticipated.

Shares of PVH traded hands at $72 on Thursday afternoon, up about 7% so far this year.

Bank of America analysts wrote that PVH's EMEA business accounts for about 50% of sales, the highest exposure among companies in their coverage universe, limiting the potential for upside amid a challenging macroeconomic backdrop.

The analysts lowered their earnings estimates for 2026 through 2028 by 1% to 3% to reflect softer sales and margin assumptions and reduced their valuation multiple to 4 times projected 2027 EV/EBITDA from 5 times previously.

Bank of America wrote that demand in Europe has weakened amid conflict in the Middle East, while PVH is also facing sales and margin pressure in its Middle East and Türkiye operations. Although the Middle East excluding Türkiye represents only about 1% of company sales, it contributes roughly 7% of total EBIT because the business is entirely wholesale.

Even if geopolitical tensions ease, the analysts wrote that a recovery in the region may take time, particularly as tourism flows into markets such as the United Arab Emirates have been affected. They added that PVH's wholesale business, which accounts for approximately half of total sales, could further slow the rebound because wholesale partners tend to be cautious about inventory commitments during periods of uncertainty.

Bank of America also noted that PVH's updated guidance already incorporates expected tariff refunds of about $100 million in the second quarter, equivalent to an estimated 100-basis-point benefit to annual gross margin. The analysts wrote that this leaves the company with less margin flexibility in 2026 relative to peers and creates more challenging comparisons in 2027.

Despite the tariff-related benefit, Bank of America expects PVH's EBIT margin to remain flat in 2026 as pressure in EMEA, tariff costs, licensing transitions and increased marketing spending offset potential gains.

While the analysts acknowledged longer-term opportunities for margin expansion through cost-cutting and strategic initiatives, they wrote that near-term profit-and-loss volatility is likely to continue overshadowing progress.

PVH Corp. (NYSE:PVH) was downgraded to 'Underperform' from 'Neutral' by Bank of America, which also lowered its price objective to $70 from $90, citing the apparel company's significant exposure to Europe, the Middle East and Africa (EMEA) and expectations that a recovery in the region could take longer than anticipated.

Shares of PVH traded hands at $72 on Thursday afternoon, up about 7% so far this year.

Bank of America analysts wrote that PVH's EMEA business accounts for about 50% of sales, the highest exposure among companies in their coverage universe, limiting the potential for upside amid a challenging macroeconomic backdrop.

The analysts lowered their earnings estimates for 2026 through 2028 by 1% to 3% to reflect softer sales and margin assumptions and reduced their valuation multiple to 4 times projected 2027 EV/EBITDA from 5 times previously.

Bank of America wrote that demand in Europe has weakened amid conflict in the Middle East, while PVH is also facing sales and margin pressure in its Middle East and Türkiye operations. Although the Middle East excluding Türkiye represents only about 1% of company sales, it contributes roughly 7% of total EBIT because the business is entirely wholesale.

Even if geopolitical tensions ease, the analysts wrote that a recovery in the region may take time, particularly as tourism flows into markets such as the United Arab Emirates have been affected. They added that PVH's wholesale business, which accounts for approximately half of total sales, could further slow the rebound because wholesale partners tend to be cautious about inventory commitments during periods of uncertainty.

Bank of America also noted that PVH's updated guidance already incorporates expected tariff refunds of about $100 million in the second quarter, equivalent to an estimated 100-basis-point benefit to annual gross margin. The analysts wrote that this leaves the company with less margin flexibility in 2026 relative to peers and creates more challenging comparisons in 2027.

Despite the tariff-related benefit, Bank of America expects PVH's EBIT margin to remain flat in 2026 as pressure in EMEA, tariff costs, licensing transitions and increased marketing spending offset potential gains.

While the analysts acknowledged longer-term opportunities for margin expansion through cost-cutting and strategic initiatives, they wrote that near-term profit-and-loss volatility is likely to continue overshadowing progress.

Key Takeaways PVH is using AI, enterprise data and store investments to improve planning, consumer insights and execution.PVH reaffirmed its operating margin outlook, but tariffs and weaker EMEA demand remain key headwinds.PVH grew DTC and digital commerce in Q1 fiscal 2026 while wholesale sales declined in constant currency. PVH Corporation (PVH - Free Report) continues to advance its disciplined PVH+ Plan, using targeted marketing, product innovation and consumer-centric initiatives to strengthen the global appeal of its flagship brands, Calvin Klein and Tommy Hilfiger, despite a tough macroeconomic landscape. Management continues to strengthen the Calvin Klein and Tommy Hilfiger brands by introducing new and engaging offerings that align with evolving consumer preferences.

Calvin Klein continued to build momentum in its core underwear and denim categories through innovative product launches, high-profile marketing campaigns featuring culturally relevant personalities and stronger merchandising execution. Tommy Hilfiger also delivered solid progress by emphasizing key product categories such as sweaters, outerwear and shirts. Enhanced brand storytelling, improved digital experiences and sports-related partnerships helped drive direct-to-consumer (DTC) growth.

The company’s PVH+ Plan mainly aims at accelerating growth by boosting core strengths and connecting brands with consumers. This plan focuses on five key drivers, which are win with product, win with consumer engagement, win in the digitally-led marketplace, develop a demand and data-driven operating model, and drive efficiencies and invest in growth.

PVH’s constant efforts to expand its international business also bode well. The company has made meaningful progress in simplifying its structure by exiting non-core businesses, allowing greater management focus and improved capital allocation. It has also been advancing its product offers and innovating its key products. Innovation continues to support PVH, particularly through advancements in product design, digital engagement and sustainability initiatives.

PVH continued to make progress in strengthening its DTC and digital channels. The company has significantly enhanced its e-commerce capabilities and omnichannel execution. This is driving higher online traffic, stronger engagement and improved full-price sell-through across channels. Investments in data analytics, AI-enabled merchandising and DTC capabilities are enhancing consumer insights and personalization. Overall, PVH’s robust strategies, including the PVH+ initiative and expansion efforts, position it well for growth.

PVH’s Price Performance, Valuation and EstimatesShares of PVH Corp. have gained 13.2% in the past six months against the industry’s decline of 8.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, PVH trades at a forward price-to-earnings ratio of 6.2X compared with the industry’s average of 14.9X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PVH’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 5.8% and 8%, respectively. The estimate for fiscal 2026 has increased in the past 30 days while that of fiscal 2027 has moved south.

Image Source: Zacks Investment Research

PVH Corp. stock currently carries a Zacks Rank #3 (Hold).

Key Picks in the Consumer Discretionary SpaceColumbia Sportswear Company (COLM - Free Report) , which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average. The Zacks Consensus Estimate for Columbia Sportswear’s current financial-year sales indicates growth of 2.6% from the year-ago number.

Ralph Lauren Corporation (RL - Free Report) , which is a designer, marketer and distributor of premium lifestyle products, currently flaunts a Zacks Rank #2 (Buy).

RL delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 6.7% from the year-ago number.

Gildan Activewear Inc. (GIL - Free Report) , which is a designer and marketer of premium quality branded basic activewear, currently has a Zacks Rank of 2.

GIL delivered a negative trailing four-quarter earnings surprise of 1.1%, on average. The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales indicates growth of 68.3% from the year-ago number.

Key Takeaways PVH beat Q1 fiscal 2026 earnings and revenue estimates, though constant-currency sales declined 2%.PVH is benefiting from DTC growth, digital commerce gains and continued investments in stores and e-commerce.PVH expects roughly flat fiscal 2026 reported revenue as tariffs and weaker EMEA demand weigh on visibility. PVH Corp. (PVH - Free Report) is drawing investor attention after an earnings beat and a valuation profile that screens cheaply against earnings and sales. The question is whether that value case is strong enough when full-year sales are expected to be roughly flat.

The answer depends on how investors weigh brand execution and tariff offsets against softer demand in Europe, the Middle East and Africa.

PVH’s Valuation Looks UndemandingPVH trades at a trailing 12-month price-to-earnings multiple of 6.9X and a forward price-to-earnings multiple of 6.4X. Its price-to-sales ratio is 0.4X, while the PEG ratio stands at 0.9.

Image Source: Zacks Investment Research

Those figures support the stock’s value appeal, especially after shares gained 21.8% in the past three months compared with the industry’s 0.5% rise. The stock also has a 52-week range of $59.60 to $100.75, with the latest referenced stock price at $77.07.

Ralph Lauren Corporation (RL - Free Report) is a useful peer for investors comparing global apparel companies with premium brand positioning and international distribution. Tapestry, Inc. (TPR - Free Report) , the parent of Coach and Kate Spade, offers another relevant comparison for brand-led consumer discretionary companies focused on direct relationships with shoppers.

Earnings Beat, but Sales Growth Remains LimitedPVH reported adjusted earnings of $2.01 per share for the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.80 and management’s guidance range of $1.65-$1.80. The figure was down 12.6% from the year-ago quarter’s $2.30.

Revenues increased 2% year over year to $2.025 billion and beat the consensus mark of $1.997 billion. On a constant-currency basis, revenues declined 2%, underscoring why the post-earnings debate is not only about the earnings beat.

Direct-to-consumer revenues rose 6% on a reported basis and 3% in constant currency. Owned and operated digital commerce advanced 11% reported and 6% in constant currency, with growth across all regions.

Brands and Digital Execution Support the CasePVH continues to rely on Calvin Klein and Tommy Hilfiger as its core engines. In the first quarter, Calvin Klein revenues increased 1% reported but declined 3% in constant currency, while Tommy Hilfiger revenues rose 3% reported and fell 2% in constant currency.

The company is using product innovation, marketing and consumer engagement to strengthen key categories. Calvin Klein is focused on underwear and denim, while Tommy Hilfiger is emphasizing sweaters, outerwear and shirts.

PVH also continues to invest in e-commerce, store concepts and shop-in-shop renovations. It completed more than 140 refurbishments and new store openings combined, while using data-driven tools to improve consumer insights, demand forecasting and operations.

Tariffs and EMEA Keep the Value Case in CheckThe main caution is the outlook. PVH now expects fiscal 2026 revenues to be approximately flat on a reported basis and to decrease slightly in constant currency, compared with its prior view for a slight reported increase.

EMEA remains the weakest region, with first-quarter constant-currency revenues down 5% due to softness in both direct-to-consumer and wholesale channels. The prolonged effects of the Middle East conflict continue to weigh on consumer demand, store traffic and wholesale activity.

Tariffs are another pressure point. PVH assumes a full-year blended tariff rate of about 15% on goods entering the United States, with an estimated gross EBIT impact of about $195 million, or roughly 215 basis points of operating margin pressure. Tariff refunds should partially offset the hit, including an estimated $100 million benefit to EBIT.

Bottom Line on PVH StockPVH has a credible value argument, but it is not a clean one. Low valuation multiples, disciplined inventory management and direct-to-consumer growth are positives, while flat sales guidance, tariff exposure and EMEA weakness limit near-term visibility.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PVH also has a Value Score of A, a Momentum Score of A, a Growth Score of C and a VGM Score of A. The Value Score of A supports the view that PVH screens attractively on valuation, while the Momentum Score of A reflects favorable price action. The Growth Score of C is more balanced. Together with the Zacks Rank #3, the setup suggests PVH may appeal to value-focused investors, but the stock still needs steadier sales trends to make the buy case stronger.

For the quarter ended April 2026, PVH (PVH - Free Report) reported revenue of $2.03 billion, up 2.1% over the same period last year. EPS came in at $2.01, compared to $2.30 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2 billion, representing a surprise of +1.38%. The company delivered an EPS surprise of +11.87%, with the consensus EPS estimate being $1.80.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how PVH performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue by Segment- Americas: $602.9 million versus $606.94 million estimated by two analysts on average.Revenue by Segment- Asia-Pacific (APAC): $387 million versus $358.8 million estimated by two analysts on average.Revenue by Segment- Europe, the Middle East and Africa (EMEA): $946.1 million compared to the $940.26 million average estimate based on two analysts.Revenue by Segment- Licensing: $89.1 million versus $91.01 million estimated by two analysts on average.View all Key Company Metrics for PVH here>>>

Shares of PVH have returned +10.1% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) is stepping up its push into an underexplored onshore oil block in southeastern Türkiye,...

The Calvin Klein parent cuts its full-year revenue guidance, citing the conflict in the Middle East.

PVH Corp. is a stock to watch around its earnings release, considering how sensitive its price tends to be at the time. The company's Q1 2026 results released post-market yesterday, however, might not be as much of an event considering the mixed numbers. PVH showed better performance in reported than non-GAAP terms and reduced revenue guidance while keeping profits forecast steady.

Fineqia International Senior Associate Matteo Greco joined Steve Darling from Proactive to discuss the latest trends in cryptocurrency exchange-traded products (ETPs), the growing divergence between digital asset markets and traditional financial markets, and the factors that could drive heightened volatility in the months ahead.

Greco highlighted an unusual market dynamic that has emerged since late 2025. While major equity benchmarks such as the S&P 500 and Nasdaq have continued to reach record highs, cryptocurrency markets have generally struggled to maintain upward momentum, resulting in a notable disconnect between digital assets and broader risk markets.

According to Greco, this divergence stands in contrast to the pattern investors became accustomed to over the past several years, particularly following the approval and launch of spot cryptocurrency exchange-traded funds in the United States. Historically, digital assets often moved in tandem with broader growth-oriented investments, making the current separation between equities and cryptocurrencies particularly noteworthy.

One factor contributing to the divergence, Greco suggested, is the concentrated influence of artificial intelligence-related companies within major stock indices. A relatively small number of large-cap technology firms have been responsible for a significant portion of the gains seen across broader equity markets. As a result, headline index performance may not fully reflect conditions across the wider economy or investment landscape.

The discussion also focused on Fineqia’s latest May Crypto ETP report, which examined investment flows and performance trends across digital asset products. Greco explained that Bitcoin ETPs largely mirrored the performance of Bitcoin itself during the reporting period, with relatively balanced fund flows and limited net inflows or outflows. This suggests investors have generally maintained existing exposure while awaiting clearer market catalysts.

Ethereum, however, experienced a more challenging environment. Both Ethereum’s price performance and associated ETP flows lagged behind Bitcoin during 2026, reflecting weaker investor sentiment and a more cautious approach toward the second-largest cryptocurrency by market capitalization.
Despite the softer performance of the largest digital assets, Greco pointed to encouraging developments within segments of the altcoin market. Several alternative cryptocurrencies delivered stronger-than-expected returns and attracted increasing investor interest. He described recent market activity as resembling a modest "alt season," where smaller digital assets outperform larger cryptocurrencies and generate increased trading activity.

Looking ahead, Greco believes volatility is likely to remain elevated across both crypto and traditional financial markets. He noted that investors continue to face uncertainty surrounding monetary policy decisions, inflation trends, energy prices, and geopolitical developments, all of which have the potential to influence capital flows and risk sentiment.

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PVH Corp. beats Q1 estimates as DTC revenues rise 6% Y/Y; Calvin Klein and Tommy Hilfiger momentum holds even as FY26 revenue view eases.

Shares of PVH Corp. came under heavy pressure after the apparel company lowered its full-year revenue outlook, with analysts warning that the latest update could lead to additional estimate cuts despite better-than-expected quarterly earnings.

The owner of the Tommy Hilfiger and Calvin Klein brands saw its stock fall more than 22%, putting the shares on track for their steepest one-day decline in more than two years.

The selloff followed the company's decision to reduce its fiscal 2026 revenue outlook, citing the ongoing effects of the conflict in the Middle East on consumer demand across Europe, the Middle East and Africa (EMEA).

PVH now expects revenue for the fiscal year to be roughly flat, compared with its previous expectation for slight growth.

Analysts surveyed by FactSet had been forecasting growth of approximately 0.8%.

Chief Executive Officer Stefan Larsson said the company was "balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and TOMMY, and on the other, the prolonged effects of the Middle East conflict."

The weaker outlook largely eclipsed what was otherwise a stronger-than-expected first quarter.

PVH reported adjusted earnings per share of $2.01, ahead of analyst expectations of $1.82. Revenue rose 2% to $2 billion, topping estimates of roughly $2 billion.

For the second quarter, however, the company forecast revenue would decline between 4% and 5%, compared with Wall Street expectations for a 1% decline.

PVH maintained its full-year adjusted earnings guidance of $11.80 to $12.10 per share. The outlook includes an estimated benefit of approximately $1.50 per share from tariff refunds.

According to the company, the prolonged Middle East conflict has offset roughly $100 million in gains from those tariff refunds by weighing on consumers in the EMEA region.

The region is particularly important for PVH, accounting for about 47% of first-quarter sales, a significantly larger contribution than for several of its apparel industry peers.

Following the earnings release, Evercore ISI downgraded PVH to In Line from Outperform and lowered its price target to $79 from $95.

According to TheFly, analyst Michael Binetti described the company's first-quarter report as a "low quality update" and said it exposed PVH to the risk of further negative estimate revisions during the second half of the year.

Evercore also noted that PVH is the only company in its coverage universe to include a one-time benefit from tariff refunds in its fiscal 2026 guidance.

The firm argued that without that benefit, the company would struggle to maintain its current margin and earnings outlook.

Needham also reduced its price target on the stock, lowering it to $102 from $107 while maintaining a Buy rating.

The brokerage said first-quarter earnings exceeded the company's own guidance primarily because of interest and tax benefits and lowered its fiscal 2027 earnings estimate to $12.80 per share from $13.40.

Long-term optimism remainsDespite the more cautious near-term outlook, not all analysts have turned negative on the stock.

UBS reiterated its Buy rating and maintained a $130 price target, citing confidence in PVH's brand portfolio, strategic direction and financial position.

The differing analyst views reflect the debate surrounding the company.

While the latest guidance cut has raised concerns about the impact of geopolitical uncertainty on consumer spending, some investors continue to see value in the long-term strength of the Tommy Hilfiger and Calvin Klein franchises.

For now, however, the market appears focused on slowing sales growth and the possibility that earnings expectations could face additional pressure in the months ahead.

Shares of PVH Corp (PVH +1.06%) sank on Thursday after the fashion conglomerate warned of a downturn in one of its major international segments.

Image source: Getty Images.

Mixed Q1 results The parent company of Calvin Klein and Tommy Hilfiger reported a 2% year-over-year rise in revenue to $2 billion in its fiscal first quarter, which ended on May 3. However, excluding the effects of foreign currency fluctuations, PVH's sales declined by 2%.

Notably, PVH grew its direct-to-consumer revenue by 6% (and 3% on a constant-currency basis). Sales at its owned-and-operated stores and websites climbed 5% and 11%, respectively.

Conversely, the company's wholesale revenue was flat and declined 6% on a constant-currency basis.

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All told, PVH's adjusted operating income fell to $131 million from $160 million in the year-ago quarter, as its operating margin decreased to 6.5% from 8.1%. Higher marketing and other brand-building costs contributed to the declines.

PVH's adjusted earnings per share, in turn, dropped 12.6% to $2.01.

A cautious outlook Investors appeared more concerned about management's guidance. PVH warned that ongoing tensions in the Middle East would weigh on its sales. The company expects revenue to fall by 3% to 4% in the second quarter, driven by a downturn in its Europe, the Middle East, and Africa (EMEA) division.

"As we look forward, we are balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and TOMMY, and on the other, the prolonged effects of the Middle East conflict, which is putting pressure on the consumer in EMEA," CEO Stefan Larsson said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Choosing between PVH (PVH +1.06%) and Tapestry (TPR +1.27%) requires balancing raw brand power against financial efficiency. Both companies aim to dominate the closet, but their paths to investor returns look very different.

PVH thrives on high-volume global apparel staples, while Tapestry focuses on the higher-margin accessible luxury market. While they both navigate a shifting retail landscape, investors often compare them to determine whether a deep-value play or a growth-oriented luxury leader is the better long-term fit.

The case for PVHPVH operates as a massive global force in the apparel stocks space, primarily through its control of the Tommy Hilfiger and Calvin Klein brands. These labels reach consumers across 40 countries using a mix of department store wholesale, company-owned retail locations, and a growing digital presence. While the company relies on diverse revenue streams, its five largest customers accounted for approximately 16.6% of total revenue in 2025, though no single customer represented more than 5% of sales.

In FY 2025, revenue reached nearly $9.0 billion, which represents a year-over-year increase of roughly 3.4% compared to the previous year. Despite this top-line growth, the company reported a net income of approximately $25.3 million, a significant decline from the $598.5 million earned in fiscal 2024. This sharp drop resulted in a net margin, which is the percentage of revenue left as profit after all expenses, of just 0.3% for the most recent fiscal year.

As of its February 2026 balance sheet, the debt-to-equity ratio is roughly 0.9x. This ratio compares total debt to shareholder equity, and a level below 1.0x suggests the company is not overly reliant on borrowed funds. The current ratio stands at approximately 1.5x, meaning the company has $1.50 in short-term assets for every $1.00 in liabilities. Free cash flow, which is cash from operations minus capital expenditures, was close to $538.4 million during the 2025 fiscal period.

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The case for TapestryTapestry positions itself as a premier house of brands, anchored by the iconic Coach name and the Kate Spade New York label. The company operates a sophisticated direct-to-consumer model, with Coach alone running over 900 stores globally to maintain high levels of brand control. Wholesale accounts for only about 13% of total net sales, and no individual customer accounts for more than 10% of sales in any segment, reducing the risk of relying on a single retail partner.

During FY 2025, Tapestry generated revenue of approximately $7.0 billion, marking a 5.1% increase over the prior year. Net income for the period was roughly $183.2 million, which represents a decline from the $816.0 million reported in fiscal 2024. This resulted in a net margin of about 2.6%, suggesting the company faced higher costs or unique charges even as its total sales grew throughout the year.

As of its June 2025 balance sheet, the debt-to-equity ratio was roughly 4.5x. This figure indicates that total liabilities exceed the value of shareholder equity, reflecting a higher level of leverage than its peer. However, the current ratio of nearly 1.9x indicates a healthy ability to cover short-term debts with current assets. Free cash flow, calculated as cash from operations after subtracting capital spending, reached approximately $1.1 billion in FY 2025.

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Risk profile comparisonPVH faces substantial geopolitical hurdles, specifically after being placed on China's Unreliable Entities List, which could lead to fines or import restrictions in a critical market. The business is also highly dependent on the continued prestige of its two main brands, meaning any shift in consumer taste could hurt sales. Additionally, PVH relies on third-party manufacturers like G-III Apparel Group, which introduces risks related to supply chain stability and quality control.

Tapestry is heavily concentrated in Southeast Asian manufacturing, making it vulnerable to trade policy changes or regional instability in countries like Vietnam and India. The company also relies on a small number of fulfillment centers in the United States, so a localized disaster could halt deliveries for the entire brand. Furthermore, Tapestry faces intense competition from other luxury players like Capri Holdings, and any failure to maintain its prestige image could drive shoppers toward rival labels.

Valuation comparisonPVH offers a much lower P/S ratio than Tapestry, which currently trades at a significantly higher Forward P/E relative to future earnings estimates.

MetricPVHTapestrySector BenchmarkForward P/E6.4x20.1x29.5xP/S ratio0.4x4.0xn/aSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with Tapestry. The fashion industry is a tough place to be right now, with tariffs, shifting consumer spending, and geopolitical headwinds making life difficult for everyone selling clothes and accessories. But within that challenging backdrop, Tapestry's Coach brand is experiencing explosive growth. It’s adding millions of new customers and growing at a rate that keeps pushing management to raise its full-year outlook. In a sector full of headwinds, that's a pretty encouraging sign.

Although PVH owns two iconic brands in Calvin Klein and Tommy Hilfiger, the story with this stock right now is one of managing headwinds rather than capitalizing on tailwinds. Tariffs alone are a significant drag on the year, and the situation in China adds a layer of real uncertainty that I don’t like. With roughly a fifth of its suppliers and factories based in China, that's not a risk that goes away quietly.

Tapestry isn't without its own challenges, especially with the Kate Spade brand still in turnaround mode. But when one brand is firing the way Coach is right now, it could be the kind of engine that can carries a portfolio. As a patient, long-term investor, Coach's momentum is the more comfortable bet for me.

Investors need to pay close attention to PVH stock based on the movements in the options market lately.