It's Raining For PVH -- Could it Pour With 10% to 25% Tariffs?

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PVH (PVH) - Get PVH Corp. Report management thought it was out of the woods in May on its first quarter earnings call. But it may not have been. 

Let's recap.

PVH said it was raising prices on some products in May, in order to keep gross margins in shape. The 25% tariffs currently in existence forced PVH to raise prices, enabling the company to cover roughly 5 cents of expected earnings per share. While PVH's tariff exposure isn't incredibly high compared to some other retailers, if the tariffs move up to what Trump suggests (10% or 25%), the picture could worsen. 

PVH management hasn't yet worked an added tariff scenario into its full year 2019 guidance. The company reports earnings September 4, and investors are anxious to find out just how much of a hit to EPS more tariffs would be. 

Current tariffs have already done some damage to the stock. Shares are down more than 11% since July 31, the last trading day before Trump said he'd like to place additional tariffs on Chinese goods, with apparel being one of the focal points of those tariffs. 

Many stocks have endured losses of late, yet many of them are not fully priced for a draconian scenario.  

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