Analyst removes PVH from favorites
NEW YORK (AP) — A key analyst at Citi Investment Research removed on clothing maker PVH Corp. from her list of favorite picks, citing pressures in Europe, and replaced it with Ralph Lauren Corp.
Kate McShane still rates the company behind Calvin Klein and Tommy Hilfiger a "Buy," however.
Ralph Lauren is the best value for investors among the global clothing sellers she tracks, McShane wrote in a note to clients Wednesday. She said Ralph Lauren was doing better in Europe.
The move follows PVH's warning on Monday that it is "cautious" about the rest of the year as consumer spending remains soft.
PVH bought rival clothier Warnaco for $2.9 billion in February. The deal created one of the world's largest clothing companies and cemented PVH's control of the Calvin Klein clothing brand. But the cost of integrating Warnaco is also dragging on the company. Along with weakness in the U.S. and Europe, those costs led to a loss in the fiscal second quarter that ended Aug. 4.
PVH said then that it remains cautious about the remainder of the year given the Warnaco integration and economic uncertainty. It expects to earn approximately $7 per share for the full year on an adjusted basis; analysts had predicted $7.13 per share.
Shares fell $2.42, or 1.9 percent, to $122.24 in afternoon trading on Wednesday. The stock is off about 6 percent this week but still up 10 percent this year. Ralph Lauren stock added 96 cents to $164.