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PVH (Baa3, BBB-; Double Pos) 1Q24 Earnings Call

CONSUMER CYCLICALS

€27/29s -3/unch, equities +2.4% (SPX +0.7%)

Not much new on the call with a lot of focus on PVH+ plan's progress - company pointing to the the controlled pull-back in Europe wholesale already benefiting margins in 1Q. It was asked about the Tommy Hilfiger & Europe CEO departure - there wasn't much mgmt wanted to add on that. €27s leading the move tighter today is confusing to us (27/29s gives +45bp for 1.5yr term extension - very steep). Our cheapest view on the sector is back on the 29s, and pre-earnings caution for those on sidelines is removed.

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€27/29s -3/unch, equities +2.4% (SPX +0.7%)

Not much new on the call with a lot of focus on PVH+ plan's progress - company pointing to the the controlled pull-back in Europe wholesale already benefiting margins in 1Q. It was asked about the Tommy Hilfiger & Europe CEO departure - there wasn't much mgmt wanted to add on that. €27s leading the move tighter today is confusing to us (27/29s gives +45bp for 1.5yr term extension - very steep). Our cheapest view on the sector is back on the 29s, and pre-earnings caution for those on sidelines is removed.

Keep reading...Show less