PVH Earnings: Here’s Why Investors are Not Happy Now

PVH Corp. (NYSE:PVH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.24%.

PVH Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 40.6% to $1.39 in the quarter versus EPS of $2.34 in the year-earlier quarter.

Revenue: Rose 47.01% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PVH Corp. reported adjusted EPS income of $1.39 per share. By that measure, the company missed the mean analyst estimate of $2.28. It missed the average revenue estimate of $2.23 billion.

Quoting Management: Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are pleased with our second quarter performance, which exceeded our previous guidance for both revenue and earnings per share, despite volatility in consumer spending during the second quarter, particularly highlighted by weakness in the United States and Europe. Our results for the quarter were driven by the outperformance of most of our newly acquired businesses coupled with organic growth in our Tommy Hilfiger and pre-acquisition Calvin Klein and wholesale Heritage Brands businesses, which more than offset the continued underperformance in our Tommy Hilfiger Japan, Bass retail and Calvin Klein Europe businesses.”

Key Stats (on next page)…

Revenue increased 2.87% from $1.91 billion in the previous quarter. EPS were the same at $1.39 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.79 to a profit $1.58. For the current year, the average estimate has moved up from a profit of $7.04 to a profit of $7.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)