Stock on Watch: PVH Corp. (PVH)

Company Profile:

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Calvin Klein North America, Calvin Klein International, Tommy Hilfiger North America, Tommy Hilfiger International, Heritage Brands Wholesale, and Heritage Brands Retail segments. It designs, markets, and retails mens and womens apparel and accessories, branded dress shirts, neckwear, sportswear, jeans wear, intimate apparel, swim products, handbags, footwear, golf apparel, fragrances, cosmetics, eyewear, socks, jewelry, watches, outerwear, small leather goods, and furnishings, as well as other related products. The company offers its products under its own brands, such as Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warners, Olga, and Eagle; and licensed brands comprising Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection, and Chaps, as well as various other licensed and private label brands. PVH Corp. was founded in 1881 and is based in New York, New York.

Recent News:

In Q2 FY17, PVH’s total revenues rose to $2.07 billion from $1.93 billion reported in Q2 FY16. Total revenues for the reported quarter topped market anticipation of $2.03 billion. Net sales increased to $1.96 billion during the reported quarter from $1.85 billion in Q2 FY16.

First quarter revenue increased 4% to $2.0 billion (increased 5% on a constant currency basis) compared to the prior year period. During the first quarter of 2017, the Company repurchased 0.6 million shares of its common stock for $60 million (5.2 million shares for $501 million since inception) under the $1.250 billion stock repurchase program authorized by the Board of Directors through June 3, 2020.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PVH’s strengths can be seen in its strong growth, better profitability and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 60.40 with positive bias. We rate PVH Corp. (PVH) a STRONG BUY.