PVH Stock Declines on Macy's Weakness, Jim Cramer's View
NEW YORK (TheStreet) -- PVH (PVH) - Get Report stock is falling by 7.2% to $83.48 in mid-afternoon trading on Wednesday, after retail giant Macy's (M) reported a 7.4% year-over-year decline in first quarter revenue and slashed its full-year same-store sales outlook.
The tempered forecast is weighing on shares of consumer companies such as Wal-Mart (WMT) and Michael Kors (KORS) as well as companies that stock retailers with goods such as Nike (NKE), VF Corp (VFC) and PVH.
Investors view Macy's outlook as an indication that consumers aren't spending now and don't plan on spending any time soon, Ken Perkins, president of Retail Metrics, told Bloomberg.
"PVH gets beaten up by Macy's all the time," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
He added that with department stores such as Kohl's (KSS) and JC Penney (JCP) as well as Macy's, there is an excess of stores at which PVH can sell its products.
"Honestly, we just don't need this many stores," he mentioned.
PVH is a New York City-based apparel company that owns brands such as Calvin Klein and Tommy Hilfiger.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
PVH's strengths such as its compelling growth in net income, revenue growth and attractive valuation levels are countered by the fact that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: PVH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
