PVH's Brand Strength to Drive Strong Earnings Growth Over Long Term, UBS Says

MT Newswires Live
09/04

PVH (PVH) has the brand strength, strategy and balance sheet to drive strong earnings growth over the long term, UBS said in a note Wednesday.

The brokerage said the company's PVH+ plan is showing signs of working, and it is also showing good growth in its "leading indicator" channels and making progress selling more units at full price, adding that it could buy back over 10% of its stock over the next four to six months.

The company maintained its fiscal 2026 adjusted EPS guidance of $11.80 to $12.10. UBS said the Q2 gross margin, excluding tariff refund noise, showed an organic beat led by better full-price selling.

UBS said it believes that the company's H2 EPS guidance looks beatable, citing improving sales growth trends, step-up in marketing in Q3, a prudent gross-margin outlook and potential for higher share repurchases.

UBS reiterated the company's buy rating and $121 price target.

Price: 71.73, Change: -0.57, Percent Change: -0.78

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