PVH Corp. posts strong results and increases guidance. Share price… drops?
Surprisingly, shares in PVH Corp., the owner of top class fashion brands like Tommy Hilfiger and Calvin Klein, dropped last week. The reason it was surprising is that the drop came on the back of what looks like positive news: the company posted strong quarterly earnings and increased its guidance for the full year. In any case, beating the Street in its last quarter was obviously not enough to keep investors happy – and PVH Corp.’s share price fell after hours when the company said that it might log a slight miss in earnings for the current quarter.
After last week’s drop, PVH’s share price has appreciated by 4% so far this year
Source: Yahoo Finance
PVH said that revenues rose by 13%, year on year, to $2.33 billion, beating analysts’ expectations of $2.29 billion. Hilfiger and Klein were the outperformers over the quarter, with the former seeing revenues rise by 15% and the latter by 18%, both reported against the same period in the previous year.
Emanuel Chirico, the company’s CEO, made the following comment about progress in the quarter: “We have made great progress in enhancing our consumer insights capabilities, increasing our efforts around online and offline consumer experiences, and driving engagement with the next generation of consumers.”
Adjusted earnings per share rose dramatically against the same period in the previous year to $2.18 – that’s also an easy beat against analysts’ expectations of $2.10 per share. However, PVH Corp. said that it expects to report adjusted earnings of “between $3.10 and $3.13 per share” for the current quarter – at the low end, that guidance trails the Street’s predictions of $3.13 per share.
The company said it now expects full-year revenue to increase by 7% against the previous year. That’s an increase from its previous full-year guidance of a 6% increase.
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.