Nomura Reiterates Above Consensus Estimate for PVH (PVH) Ahead of Earnings

Nomura analyst, Robert Drbul, is holding fast with his above consensus call for PVH Corp (NYSE: PVH) heading into earnings tomorrow night. His EPS estimate is $2.50, $0.03 above consensus despite expecting that the retail environment will remain tough over the next several quarters. He believes upside in the current quarter and what would have been a guidance raise will be offset by the weaker environment. This shows up in FY16 numbers. The FY16 EPS estimate of $7.30, is $0.14 below the street.

The highly promotional current environment and heightened inventory levels across many key retailers is evident thus far in 3Q. In a very difficult and promotional environment, the PVH brands are relatively outperforming their categories here in the U.S. and that PVH is performing well on a global basis.

The analyst stated that "with PVH trading at ~12.5x our 2016 EPS estimate of $7.30, vs. our branded apparel group average of ~16.0x, and down almost ~30% YTD we see the shares as attractive on a relative value basis despite the macro challenges that we think lie ahead."

The firm maintained a Buy rating and price target of $135.

For an analyst ratings summary and ratings history on PVH Corp click here. For more ratings news on PVH Corp click here.

Shares of PVH Corp closed at $91.29 yesterday.

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