2023-03-28 11:10:03 ET
PVH Corp. ( NYSE: PVH ) shares ripped over 20% higher during Tuesday's trading after topping earnings expectations and promoting an upbeat outlook. These dynamics were widely lauded by analysts, many of whom noted the “solid” nature of the results and guidance.
For its fiscal fourth quarter, the Calvin Klein parent posted far stronger than expected profits and noted continued strong sales trends. Management also forecast sales to remain robust in 2023, with revenue expectations exceeding the Street consensus . Additionally, margin improvements and normalizing inventory levels are expected to boost full-year EPS to $10.00, well above the $8.91 in earnings per share anticipated by analysts.
“CEO Stefan Larsson has only just begun executing his plan to improve PVH's profitability and we think there are major margin unlocks that will play out over the next few years,” UBS analyst Jay Sole wrote in a review of the results. “While we have a bearish Softlines industry view, we think PVH will outperform other stocks over the [next twelve months].”
Sole reiterated a Buy rating and a $92 price target, indicating that he was encouraged by the “very solid Q4 report” on Monday. He told clients that the particularly strong bottom line report “increases [his] conviction the PVH+ plan is working.”
Sole’s bullish take on the print dovetailed with Bank of America’s reiteration of a Buy rating . Equity analyst Christopher Nardone indicated he was “encouraged” by the results, maintaining a $100 price target.
Shares of PVH ( PVH ) popped over 20% after the conclusion of its Q4 earnings call, touching an intraday high of $89.12. The apparel manufacturer traded near its highest levels since the first week of February.
Wedbush and BMO Capital Markets’ analysts lauded the report and the progress of management’s long term plans. However, both maintained Neutral ratings in contrast to Buy ratings from both Bank of America and UBS.
“The paradigmatic brand-builder, PVH, deserves much credit for what it achieved with Calvin Klein and Tommy Hilfiger, growing them into two of the largest brands in history. That said, we believe CK has reached a revenue peak and could benefit from a greater focus on profits versus sales,” BMO analyst Simeon Siegel explained in his investment thesis. “We rate the shares Market Perform until we see greater evidence of the ability to expand margins.”
Dig into sell-side ratings on the stock .
For further details see:
PVH stock pops over 20% as analysts applaud earnings beat