PVH (PVH.US) stock jumped more than 18% on Tuesday after the parent company of Calvin Klein and Tommy Hilfiger posted better than expected quarterly results, while revenue guidance also beat market expectations.
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Company recorded adjusted earnings of $2.38 per share (down 16% YoY) on $2.49 billion of revenue (2.0% increase YoY). Analysts surveyed by Refinitiv were expecting $1.67 in earnings per share on $2.37 billion of revenue.
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Revenue from the Tommy Hilfiger and Calvin Klein brands increased by 3% each.
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PVH recorded a drop in adjusted profit in Q4, despite higher revenues. Source: AlphaStreet
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“We delivered strong fourth quarter performance with stronger than expected high-single digit constant currency revenue growth and earnings above guidance. Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy enabled us to compete to win despite the challenging macro situation,” said PVH’s CEO Stefan Larsson.
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Company expects revenue to increase 3% to 4% as compared to 2022 (increase 2% to 3% on a constant currency basis), while operating margin is projected to be approximately 10%.
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PVH expects full-year earnings to be $10 per share compared to $3.03 on a GAAP basis and $8.97 on a non-GAAP basis in 2022.
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Interest expense is expected to rise to approximately $100 million compared to $83 million in 2022 primarily due to higher interest rates.
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PVH (PVH.US) stock launched today’s session with an impressive bullish price gap and later on buyers managed to break above local resistance at $85.20, which coincides with 38.2% Fibonacci retracement of the upward wave started in March 2020. If current sentiment prevails, upward move may accelerate towards February 2023 high at $94.50. Source: xStation5