2023-03-27 16:33:23 ET
PVH Corp. ( NYSE: PVH ) stock ripped higher in Monday’s extended session after beating on the top and bottom line for Q4.
For its fiscal fourth quarter, the apparel manufacturer notched $2.38 in adjusted earnings per share, well above the $1.67 consensus. Meanwhile, a 2% rise in revenue year over year to $2.49B came in above the 2.9% decline to $2.36B that was anticipated. Gross margin contracted 240 basis points year over year to 55.9% amid promotional activity and elevated inventory levels across the industry. PVH’s ( PVH ) inventory increased 34% in Q4 2022 as compared to 2021.
“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,” CEO Stefan Larsson commented. “Looking ahead, we are entering 2023 with significant momentum, and we will continue to execute the PVH+ Plan with discipline towards our long-term vision to build TOMMY HILFIGER and Calvin Klein into the most desirable lifestyle brands in the world and be one of the highest performing brand groups in our sector.”
For the first quarter, the company expects revenue to be flat year over year while EPS is projected to fall slightly to $1.90. The latter figure is in-line with consensus while the former is better than the 1.7% decline anticipated by analysts.
For the full-year, revenue is expected to rise between 3% and 4% while EPS is expected to hit $10.00. Analysts had projected a 2.9% rise in revenue and $8.91 in earnings per share.
“We are well positioned to achieve double-digit EPS growth in 2023 and have a multi-year opportunity ahead of us to drive meaningful top and bottom-line growth,” CFO Zac Coughlin concluded. “Our plan is built on two of the most powerful brands in the fashion industry, and we are doubling down on the PVH+ Plan growth drivers and focusing on what is within our control to drive sustainable and profitable growth, generate strong cash flows, and deliver attractive returns for our shareholders.”
Shares of the Tommy Hilfiger and Calvin Klein parent pushed 10.23% higher in after hours trading.
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PVH Corp. stock pops 10% on profit beat, bullish outlook