PVH beats the Street in fourth quarter
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PVH beats the Street in fourth quarter

Multi-brand apparel giant PVH Corp. posted better than expected earnings last week for the fourth quarter of fiscal 2017, causing its share price to surge. The company said that sales of its Tommy Hilfiger and Calvin Klein continued to increase, shoring up business throughout the year.

PVH’s share price has risen by 8% in the last month

graph 0304 pvh

SOURCE: Yahoo Finance

Adjusted earnings for the quarter came in at $1.58 per share – a beat against both last year’s figure ($1.23 per share) and the Street’s expectations ($1.46 per share). Revenue also outperformed, coming in at $2.50 billion. This is, once more, a beat against the previous year ($2.11 billion) and analysts’ expectations ($2.35 billion).

PVH’s CEO, Emanuel Chirico, made the following statement about the results: "We are very pleased with our fourth quarter and full year 2017 results, which exceeded our expectations. These results are ahead of our long-term targets, driven largely by strong momentum in our Tommy Hilfiger and Calvin Klein businesses."

Calvin Klein and Tommy Hilfiger were both outperformers. The former brand saw business increase by 23% year on year, while the latter brand saw revenues rise by 22% in the same period. In both brands’ case, this translates to a figure of around $1 billion – which goes to show just how central they are to the company.

PVH said that it has high hopes for the first quarter. It’s expecting to see revenue rise by 15%, and earnings per share in the range of $2.20 to $2.25.


Disclosure

Dominion holds PVH Corp. in its Global Trends Luxury Fund.


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