Shares of the New York City-based clothing company began to pop after the open on Friday morning after nearly double-digit declines in after-market trading on Thursday into Friday's pre-market.
Amid the volatility, analyst consensus remains a "Buy" while consensus price targets estimate a nearly $50 premium to Thursday's closing price of $109.77 per share despite some pullback on price targets Thursday evening.
"It is important to understand that the story doesn't appear to be unraveling: inventory/GM outlook is now healthy, holiday momentum appears compelling and 2019 drivers are in place," Wells Fargo analyst Ike Boruchow wrote in his take on third-quarter earnings.
He noted that the stock is currently the cheapest it has been in seven years, trading at a P/E ratio of 10.8 amid its 2018 tumble, making it attractively priced among its peers.
Boruchow maintained his "Buy" rating despite a lessened price target of $140 from his prior $180 estimate.
One of the key drivers toward the raised guidance offered by the company and potential for progress past a low multiple is the company's e-commerce element.
"From a digital sales point of view we continue to see growth at an outpaced rate with revenues growing over 20% across our third party and our owned and operated businesses," PVH CEO Manny Chirico told analysts on Friday morning. "We continue to be impressed by the strength experienced across all channels retail wholesale and digital."
He added that the digital segment would remain a focus heading into the key holiday season as the company zeroes in on younger consumers.
"For holiday 2018 we are shifting more of our media spend from halo marketing to more commercial digital and social media advertising," Chirico said. "We have upped the frequency of our posts on social platforms like Instagram and we are increasingly using micro influencers and hosting local activation to drive meaningful engagement particularly with millennials and Gen Z."
The company has also touted its connection to e-commerce giants like Alibaba's (BABA) Tmall for helping drive strong digital growth even far from its base in New York.
Trending With Tommy
The growth in digital has coincided with stronger consumer interest in Tommy Hilfiger, particularly among the aforementioned young customers, that could set up growth in the soon-to-be largest customer demographic.
The e-commerce sales of Tommy in particular were noted to have helped pump up the company's earnings despite weakness in Calvin Klein.
"Tommy's Capsule Collection with street label sold out online in 37 minutes," Chirico said. "Our recent brand studies have confirmed the average age of our consumer has come down several years as we continue to connect with more millennials and Gen Z."
The growth in Tommy Hilfiger among a younger consumer base provides a compelling longer-term investment strategy for those figuring demographic forecasts into longer-term investments.
PVH shares jumped as much as 5% in Friday morning market hours as many analysts and experts signal it is not too late to jump on board the relatively cheap stock, especially given its future following among a burgeoning base of young consumers.