In his first Executive Decision segment of "Mad Money" Wednesday, host Jim Cramer spoke with Manny Chirico, chairman and CEO of PVH Cprp. (PVH) , the apparel maker that just posted strong earnings despite the pandemic.
Chirico said PVH's strong brands, combined with strong international sales, helped drive its results last quarter. He cited both Europe and China as pockets of strength despite store closures in Europe due to Covid-19.
When asked about U.S. sales, Chirico noted that international tourism accounts for 35% to 40% of North American sales at PVH, so with tourism down by as much as 95% those sales suffered. However, some of those losses were offset by gains in digital sales, where online partners such as Macy's M and Amazon AMZN helped close the tourism gap.
In our last review of PVH on Sept. 15 we wrote, "Traders could look to go long PVH closer to $65 risking a close below $59. Our targets are $96 and then $104."
In this updated daily bar chart of PVH, below, we can see that PVH pulled back into October and then rallied last month to a new high but has yet to reach our targets. Prices are trading above the rising 50-day moving average line and above the bottoming 200-day moving average line. The On-Balance-Volume (OBV) line has been moving irregularly higher since early April. The line is positive, but it has yet to make a new high for the move up to confirm the new price high on PVH. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed toward a possible downside crossover. The MACD oscillator tells us that the uptrend in PVH is not all that robust.
In this weekly bar chart of PVH, below, we can see that prices have finally broken the downtrend from the zenith in 2018. Prices are above the bottoming 40-week moving average line. The weekly OBV line shows a more positive trend than the daily OBV line. The MACD oscillator has been in a bullish alignment above the zero line since September.
In this daily Point and Figure chart of PVH, below, we can see that prices are in an uptrend. PVH is trading sideways now to correct some of those gains. The software is projecting the $101 area as the next price target.
Bottom line strategy: Raise stop protection on any longs to $67. Our price targets for now are $96 and the $101-$104 area.