PVH Corp Posts Stronger-than-Expected Quarterly Results

Apparel company PVH Corp (PVH) announced better-than-expected first-quarter results.

Revenues came in at $2.08 billion in Q1, which was above the Street’s estimates of $1.93 billion, and jumped 55% from the year-ago period.

Adjusted earnings came in at $1.92 per share, beating the consensus estimates of $0.83 per share. A loss of $3.03 per share was reported in the same quarter last year.

PVH Corp CEO Stefan Larsson said, “Looking ahead, we are increasing our full year outlook despite continued uncertainty in the macro environment, as we navigate through the pandemic and related supply chain disruptions. We are confident in our ability to drive towards an accelerated recovery in a way that positions PVH closer to the consumer than any time before.” (See PVH Corp stock analysis on TipRanks)

For Q2, PVH expects revenues to increase 34% to 36% year-over-year. Non-GAAP earnings are expected in the range of $1.15 to $1.18 versus the consensus estimate of $1.22.

PVH increased its full-year 2021 outlook despite continued uncertainty in the macro environment. It projects revenues to increase 24% to 26% year-over-year. Additionally, non-GAAP earnings per share are anticipated to be $6.50. The consensus estimate for EPS is pegged at $6.16.

On April 13, Guggenheim analyst Robert Drbul reiterated the stock’s price target of $120 (9.7% upside potential) and a Buy rating.

Drbul commented, “Given the company’s actions to streamline its organization in recent months, coupled with a potentially normalizing retail environment in 2021 (including improving levels of store traffic, a potential return of tourism travel & spend, and an increase in discretionary spend on more formal apparel, all of which PVH stands to benefit from), we believe PVH will be emerging from the pandemic a stronger, leaner, and more profitable company with some favorable YoY tailwinds in 2021.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 6 Buys, 2 Holds, and 1 Sell. The average analyst price target of $112.25 implies 2.6% upside potential to current levels. Shares have increased 24.1% over the past six months.

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