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
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.
Dominion holds PVH Corp. in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.