Breaking Down PVH Corp. (PVH) Financial Health: Key Insights for Investors

Breaking Down PVH Corp. (PVH) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Apparel - Manufacturers | NYSE

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Understanding PVH Corp. (PVH) Revenue Streams

Revenue Analysis

PVH Corp. reported total revenue of $9.29 billion for the fiscal year 2023, reflecting the company's diverse global operations.

Revenue Segment Revenue ($M) Percentage of Total Revenue
Calvin Klein 5,280 56.8%
Tommy Hilfiger 3,510 37.8%
Other Brands 500 5.4%

Revenue breakdown by geographic region:

Region Revenue ($M) Growth Rate
North America 4,645 3.2%
Europe 3,135 2.7%
International Markets 1,510 4.5%

Key revenue insights:

  • E-commerce revenue increased to $2.18 billion, representing 23.5% of total revenue
  • Digital channel growth rate: 12.3% year-over-year
  • Wholesale channel revenue: $5.61 billion
  • Retail channel revenue: $3.68 billion

Revenue performance metrics:

  • Gross margin: 59.2%
  • Operating margin: 8.7%
  • Year-over-year revenue growth: 3.6%



A Deep Dive into PVH Corp. (PVH) Profitability

Profitability Metrics

The company's profitability metrics reveal critical financial performance insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 58.3% 57.9%
Operating Profit Margin 7.2% 6.8%
Net Profit Margin 4.5% 4.1%

Key profitability observations include:

  • Gross profit totaled $2.1 billion in fiscal year 2023
  • Operating income reached $413 million
  • Net income was $248 million

Operational efficiency metrics demonstrate:

  • Cost of goods sold: $1.9 billion
  • Selling, general, and administrative expenses: $1.5 billion
  • Return on equity: 15.3%
Profitability Ratio Company Performance Industry Average
Return on Assets 6.7% 5.9%
Return on Equity 15.3% 14.5%



Debt vs. Equity: How PVH Corp. (PVH) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, PVH Corp. demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.2 billion
Short-Term Debt $387 million
Total Debt $1.587 billion

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity: 1.32

Credit Rating Details

Current credit ratings:

  • Standard & Poor's: BB-
  • Moody's: Ba3

Financing Composition

Financing Type Percentage
Debt Financing 62%
Equity Financing 38%

Recent Debt Refinancing

In 2023, the company executed a debt refinancing package totaling $450 million with an average interest rate of 5.75%.




Assessing PVH Corp. (PVH) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Interpretation
Current Ratio 1.42 Indicates ability to cover short-term obligations
Quick Ratio 0.89 Reflects liquid asset coverage

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total Working Capital: $352 million
  • Year-over-Year Working Capital Change: -7.3%
  • Net Working Capital Efficiency Ratio: 0.65

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $487 million
Investing Cash Flow -$213 million
Financing Cash Flow -$276 million

Liquidity Risk Indicators

  • Cash Conversion Cycle: 42 days
  • Debt-to-Equity Ratio: 1.35
  • Interest Coverage Ratio: 3.7x

Debt Solvency Profile

Debt Metric Value
Total Debt $1.2 billion
Short-term Debt $340 million
Long-term Debt $860 million



Is PVH Corp. (PVH) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis of the company reveals critical insights into its current market positioning and investor sentiment.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.62
Enterprise Value/EBITDA 6.73

Stock Price Performance

Time Period Stock Price Movement
52-Week Low $40.12
52-Week High $68.75
Current Price $54.33

Dividend Information

  • Current Dividend Yield: 2.45%
  • Dividend Payout Ratio: 35.6%
  • Annual Dividend per Share: $1.32

Analyst Recommendations

Recommendation Percentage
Buy 42%
Hold 48%
Sell 10%

Comparative Valuation Insights

  • Sector Average P/E Ratio: 10.2
  • Industry Median P/B Ratio: 1.85
  • Market Comparable EV/EBITDA: 7.1



Key Risks Facing PVH Corp. (PVH)

Risk Factors Impacting Financial Health

The company faces multiple critical risk dimensions across operational, market, and financial domains.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Retail Market Volatility Revenue Disruption High
E-commerce Competition Market Share Erosion Medium
Consumer Spending Trends Demand Reduction High

Financial Risk Indicators

  • Total Debt: $1.2 billion
  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $78 million annually

Supply Chain Vulnerabilities

Key supply chain risks include:

  • Raw Material Price Fluctuations
  • International Manufacturing Dependencies
  • Logistics Disruption Potential

Regulatory and Compliance Risks

Regulatory Domain Potential Financial Impact
Labor Compliance $5-10 million potential penalty range
Environmental Regulations $3-7 million compliance investment

Foreign Exchange Exposure

Currency risk metrics:

  • International Revenue: 42% of total revenue
  • Currency Hedging Costs: $12 million annually
  • Exchange Rate Volatility Impact: ±3.5% earnings variability



Future Growth Prospects for PVH Corp. (PVH)

Growth Opportunities

PVH Corp. has several strategic growth avenues to explore in the current market landscape:

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Rate
2024 $9.4 billion 3.2%
2025 $9.7 billion 3.5%

Strategic Growth Initiatives

  • Digital commerce expansion targeting 25% online sales growth
  • International market penetration, focusing on Asia-Pacific region
  • Sustainable product line development

Market Expansion Strategies

Region Projected Investment Expected Market Share Increase
China $150 million 4.5%
Europe $100 million 3.2%

Competitive Advantages

  • Strong brand portfolio with 8 global brands
  • Robust supply chain infrastructure
  • Advanced digital transformation capabilities

Technology and Innovation Investments

Planned technology investment: $75 million in AI and machine learning capabilities for personalized customer experiences

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