PVH Corp Price Target Slashed to $79 After Q1 Revenue and EPS Beat
PVH•Evercore downgraded PVH Corp to In Line from Outperform and cut its price target to $79 from $95 after Q1 results showed 2% revenue growth to $2.03 billion and EPS of $2.01. CEO Stefan Larsson said prolonged Middle East conflict pressures EMEA consumers, prompting full-year revenue outlook to be flat.
1. Evercore Downgrade and Price Target Cut
Evercore ISI lowered PVH Corp to an In Line rating from Outperform and reduced its price target from $95 to $79, warning of low-quality update risk and triggering a more than 20% premarket stock decline.
2. Q1 Revenue and EPS Beat Estimates
PVH Corp reported first-quarter revenue of $2.03 billion, up 2% year-over-year, and EPS of $2.01, both surpassing consensus estimates of $2.00 billion and $1.82 respectively.
3. Middle East Conflict Pressures EMEA Consumers
CEO Stefan Larsson said prolonged Middle East conflict has weighed on consumer demand in Europe, Middle East and Africa, partially offsetting a $100 million tariff refund gain included in fiscal guidance.
4. Full-Year Outlook Revised to Flat Revenue
The company lowered its full-year revenue outlook to flat on a reported basis, while maintaining an 8.8% operating margin target and EPS guidance of $11.80 to $12.10, noting that exclusion of the one-time tariff benefit would challenge margin goals.
