“PVH Corp. (NYSEVH) shares moved higher on Thursday morning after promoting a positive view of sales growth despite significant headwinds.The Calvin Klein-parent reported EPS and revenue of $1.94 and $2.13B, respectively. The former figure was well beyond the prior guidance of $1.55 to $1.60 and well above the $1.59 anticipated by analysts. Revenue beat expectations by a more narrow margin, rising $40M above the bar set by Wall Street. The strong numbers were noted as overcoming significant headwinds related to Russia, Ukraine, and Belarus in the wake of Russia’s irredentist invasion. Management indicated a $0.10 per share impact from the shutdown of businesses and cuts to shipments across the region. Also, in contrast to most apparel retailers, inventory fell 4% in the quarter.Shares rose over 4% in premarket hours on Thursday.CEO Stefan Larsson voiced confidence in continued strength via the company’s recently unveiled PVH+ plan that focuses on Direct to Consumer sales and a firmer focus on the Tommy Hilfiger and Calvin Klein brands. “Looking ahead, we are encouraged by the sustained momentum of our overall underlying trends, and remain confident in our full year outlook,” he said. “While we are mindful of and continue to navigate through the global macroeconomic headwinds, we are proactively managing our business to deliver on our commitments, drive growth and create long-term value.”To this end, the company expects full-year EPS to reach $9.20 on a GAAP basis while operating margin estimates were reaffirmed at 10%. Analysts had anticipated $8.99 in EPS for the full year. Revenue is anticipated to rise 1% to 2% as compared to 2021 due to a 2% reduction resulting from the sale of Heritage Brands and a 2% hit to sales related to Ukraine and Russia. To be sure, management indicated the second quarter would be choppy before a return to strong growth in the latter part of the year. For the second quarter, revenue is projected to decrease approximately 4% to 3% compared to the prior year period as the company continues to iron out its Heritage Brands transaction and the exit from retail businesses in Russia. Earnings per share on a GAAP basis is projected to be approximately $2.20 compared to $2.51 in the prior year period, being hit significantly by the very same transition issues.”
CCX Price at posting:
$2.16 Sentiment: Buy Disclosure: Held
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VH) shares moved higher on Thursday morning after promoting a positive view of sales growth despite significant headwinds.The Calvin Klein-parent reported EPS and revenue of $1.94 and $2.13B, respectively. The former figure was well beyond the prior guidance of $1.55 to $1.60 and well above the $1.59 anticipated by analysts. Revenue beat expectations by a more narrow margin, rising $40M above the bar set by Wall Street. The strong numbers were noted as overcoming significant headwinds related to Russia, Ukraine, and Belarus in the wake of Russia’s irredentist invasion. Management indicated a $0.10 per share impact from the shutdown of businesses and cuts to shipments across the region. Also, in contrast to most apparel retailers, inventory fell 4% in the quarter.Shares rose over 4% in premarket hours on Thursday.CEO Stefan Larsson voiced confidence in continued strength via the company’s recently unveiled PVH+ plan that focuses on Direct to Consumer sales and a firmer focus on the Tommy Hilfiger and Calvin Klein brands. “Looking ahead, we are encouraged by the sustained momentum of our overall underlying trends, and remain confident in our full year outlook,” he said. “While we are mindful of and continue to navigate through the global macroeconomic headwinds, we are proactively managing our business to deliver on our commitments, drive growth and create long-term value.”To this end, the company expects full-year EPS to reach $9.20 on a GAAP basis while operating margin estimates were reaffirmed at 10%. Analysts had anticipated $8.99 in EPS for the full year. Revenue is anticipated to rise 1% to 2% as compared to 2021 due to a 2% reduction resulting from the sale of Heritage Brands and a 2% hit to sales related to Ukraine and Russia. To be sure, management indicated the second quarter would be choppy before a return to strong growth in the latter part of the year. For the second quarter, revenue is projected to decrease approximately 4% to 3% compared to the prior year period as the company continues to iron out its Heritage Brands transaction and the exit from retail businesses in Russia. Earnings per share on a GAAP basis is projected to be approximately $2.20 compared to $2.51 in the prior year period, being hit significantly by the very same transition issues.”
