PVH CEO Larsson Buys $1M In Company Stock: Needham Calls It An ‘Encouraging Show Of Confidence’

Calvin Klein-parent PVH’s CEO, Stefan Larsson, bought $1 million worth of company stock that brokerage Needham on Tuesday called an “encouraging show of confidence.”

PVH’s shares were up nearly 3% in early morning trade. The stock has fallen 35% year-to-date as the apparel maker struggles with slowing demand, mainly at its direct-to-consumer channel.

Needham maintained a Buy rating and its $100 price target on PVH, according to The Fly, adding that the insider purchase by its CEO represents management's confidence in the current state of the business.

According to a regulatory filing, Larsson on June 26 purchased 15,644.586 shares of PVH’s common stock for $63.92 per share.

While the macro environment is undoubtedly challenging, shares have been overly punished, said Needham, adding that this is particularly due to the accretion from cost efficiencies and the G-III licenses hitting the P&L within the next three years.

Customers in the United States are becoming more cautious about their buying behaviour due to the macroeconomic environment influenced by President Donald Trump’s on-and-off tariffs, which have resulted in price hikes by retailers ranging from Walmart to Nike.

The tariffs have also resulted in higher production costs for many retailers in the United States, who depend on Asian countries such as China, Vietnam, and Thailand for manufacturing their products.

In June, PVH forecast a second-quarter profit below expectations and slashed its guidance for the full year, as the apparel maker battles rising costs and a slowdown in consumer demand.

Stocktwits data showed that the retail sentiment over the last month was ‘bullish,’ but turned ‘bearish’ in the past week.

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