PVH Corp. (NYSE:PVH) reported better-than-expected results for the first quarter. The company also announced major changes to its C-suite. Despite the Q4 beat, PVH stock fell about 2% in Tuesday’s after-hours trading due to weak revenue guidance for both the second quarter of 2024 and the full year.
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PVH is a global apparel company known for several brands, including Calvin Klein and Tommy Hilfiger.
PVH: Q1 Snapshot
PVH delivered revenue of $1.95 billion in Q1, which declined 10% year-over-year but exceeded analysts’ estimate of $1.93 billion.
Meanwhile, adjusted earnings per share (EPS) of $2.45 jumped 14.5% year over year and surpassed analysts’ consensus estimate of $2.17. PVH’s focus on improving cost efficiencies and strong pricing power supported the company’s bottom line.
Q2 and 2024 Outlook
For Q2, PVH expects a 6-7% year-over-year decline in revenue. Also, it forecasts an EPS of $2.25. Analysts are predicting an EPS of $2.21 on revenue of $2.07 billion.
For the full year 2024, the company reaffirmed its outlook of a 6-7% decline in revenues. However, PVH raised its earnings guidance to a range of $11 to $11.25 per share, compared with the previous guidance of $10.75 to $11.00 per share. The consensus estimate of $11.09 comes in within the guided range.
Leadership Changes
PVH has announced the departure of Martijn Hagman, CEO of Tommy Hilfiger Global and PVH Europe. As a result, David Savman, PVH’s Chief Supply Chain Officer, will step in as interim CEO for PVH Europe.
Additionally, Lea Rytz Goldman, President of Tommy Hilfiger Global, will oversee the global brand.
Top-Analyst Bullish Post-Q1 Results
Following the Q1 earnings release, five-star analyst Christopher Nardone from Bank of America Securities reiterated a Buy rating on PVH with a price target of $122, suggesting a 12.7% upside potential. (To watch Nardone’s track record, click here.)
The analyst remains impressed by the company’s better-than-expected first-quarter earnings and the upward revision of its full-year adjusted EPS guidance. In addition, Nardone finds PVH stock’s current valuation attractive.
Is PVH a Good Buy?
Wall Street analysts are upbeat about the company’s prospects. The stock has 12 Buy and four Hold recommendations for a Strong Buy consensus rating. The analysts’ average price target on PVH stock of $134.40 implies a 12.7% upside potential. The stock has gained over 55% in one year.
