PVH Corp.

PVH Corp. (NYSE: PVH) is a company that designs and markets branded clothes for Tommy Hilfiger, Calvin Klein, Warner's, Olga, and True&Co., among other brands. It is one of the world's largest garment firms, with operations in over 40 countries and a 140-year history.

Key Highlights

• The company reported a surge of 57.53% in net sales to USD 1.98 billion in Q1FY21 (ended May 02, 2021) compared to USD 1.26 billion in Q1FY20 (ended May 03, 2020).
• As of May 02, 2021, the company had cash and cash equivalents of USD 913.2 million and total debt of USD 3.06 billion.
• PVH operated at a relatively low EBITDA margin of 5.0% in FY21 whereas the industry median stood at 9.5%.
• On August 2, 2021, PVH completed the sale of certain intellectual property and other assets relating to its Heritage Brands business to Authentic Brands Group for approximately USD 223 million, previously announced on June 23, 2021.
• Stock is currently trading well above its crucial long-term as well as short-term support levels of 50-day and 200-day SMA levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 49.60 to USD 121.17.
• PVH stock has risen 113.43% in the past twelve months, compared to 57.44% for the S&P 500 index and 27.81% for the S&P 500 Apparel sector.
  
  

Technical Price Chart (as of August 12, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the present share price adequately reflects the decent business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 114.27, up 0.37% as of August 12, 2021.

*The reference data in this report has been partly sourced from REFINITIV. 

Skechers U.S.A., Inc.

Skechers U.S.A., Inc. (NYSE: SKX) designs and markets lifestyle and performance footwear for men, women and kids under the brand name of ‘Skechers’.

Key Highlights

• The company reported a surge of 127.25% in total revenue to USD 1.66 billion in Q2FY21 (ended June 30, 2021) compared to USD 729.47 million in Q2FY20.
• SKX reported a net income of USD 137.37 million in Q2FY21 in contrast to a net loss of USD 68.10 million in Q2FY20.
• On July 21, 2021, SKX launched a limited-edition collection of sneakers inspired by late Japanese designer Kansai Yamamoto in Japan, North America, and Europe. Similarly, on July 8, 2021, it partnered with pocket.watch and Sunlight Entertainment to launch its new collection designed in collaboration with kid YouTuber Ryan Kaji.
• On June 29, 2021, SKX was named official footwear supplier of both the European and United States Solheim Cup Teams for the 2021 tournament.
• Relatively high net margin of 9.8% in Q2FY21 vs. industry median of 7.2%.
• Stock is currently trading above its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 28.25 to USD 55.87.
• SKX’ share price has increased 47.37% and 71.90% in the past six and nine months, respectively.

Technical Price Chart (as of August 12, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 53.70, up 0.26% as of August 12, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

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