03:10 PM EDT, 06/05/2025 (MT Newswires) -- PVH's (PVH) "moderately disappointing" Q1 results don't alter the company's long-term earnings growth story, UBS Securities said.

"Operational challenges and larger-than-expected tariff headwinds" are weighing on fiscal 2025 earnings, but UBS said in a note Wednesday that the broader outlook remains intact. "We are still positive on the stock," the firm said.

PVH on Wednesday reported Q1 non-GAAP earnings of $2.30 per share on revenue of $1.98 billion, both above analyst expectations. The company reduced its fiscal 2025 EPS forecast to a range of $10.75 to $11 from its previous outlook of $12.40 to $12.75, but reaffirmed its revenue growth guidance.

UBS said the guidance cut reflects two gross margin pressures: higher-than-expected tariff costs, with a $1.05 impact on full-year EPS, and a supply chain issue that led to increased reliance on air freight for Calvin Klein products.

Still, the brokerage said the Calvin Klein and Tommy Hilfiger brands remain strong and are showing signs of momentum due to improved product and marketing. It sees these issues as transitory, with margins likely to recover in 2026.

"PVH's issues are mainly operational and macro related," the firm said. "We believe the operational issues get resolved sooner rather than later."

UBS said PVH's long-term earnings potential remains underappreciated.

The firm reiterated its buy rating on the stock with a price target of $150.

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