Yahoo Finance Here's How PVH Corp (PVH) is Placed Ahead of Q4 Earnings
PVH Corporation PVH is expected to register year-over-year bottom-line growth when it reports fourth-quarter fiscal 2023 results on Apr 1. The consensus mark for quarterly revenues is pegged at $2.4 billion, indicating a decline of 3.2% from the prior-year reported number.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $3.50 per share, suggesting growth of 47.1% from the year-ago quarter’s reported figure. The consensus mark for earnings has moved up by a penny in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 6.6%. It has a trailing four-quarter earnings surprise of 18.9%, on average.
PVH Corp. Price and EPS Surprise
PVH Corp. price-eps-surprise | PVH Corp. Quote
Factors to Note
PVH Corp has been gaining from the continued momentum in its core brands, Calvin Klein and Tommy Hilfiger, along with pricing actions and strong consumer engagement. The company's Tommy Hilfiger and Calvin Klein brands are anticipated to have performed well in the to-be-reported quarter, driven by robust consumer demand.
On the last reported quarter’s earnings call, management was confident about the underlying power of the Calvin Klein and Tommy Hilfiger brands, which position the company to thrive in the ever-changing consumer landscape.
Our model predicts a sales decline of 0.6% for Tommy Hilfiger for the fiscal fourth quarter. Sales for Calvin Klein are anticipated to increase 2.9% year over year, while Heritage Brands is expected to record a sales fall of 75.4%.
The continued momentum in PVH Corp's international unit is likely to have aided the company’s performance in the fiscal fourth quarter. Management has been on track with its PVH+ Plan, which is likely to result in substantial cost efficiencies and better productivity. PVH expected the business momentum to be positive throughout 2023. These factors are likely to get reflected in the company’s top-line results for the fiscal fourth quarter.
PVH has been focused on fueling digital growth by developing a holistic distribution strategy for Calvin Klein and Tommy Hilfiger, driven by digital and direct-to-consumer channels and wholesale partnerships. PVH has also been focusing on boosting efficiencies to be cost-competitive and, in turn, reinvest in strategic plans. Gains from these efforts are likely to get reflected in the company’s top and bottom lines in the to-be-reported quarter.
On the last reported quarter’s earnings call, management anticipated a revenue decline of 3-4% on both reported and constant-currency basis for fourth-quarter fiscal 2023. The company expects the gain from the 53rd week to be fully offset by revenue reduction due to the sale of the Heritage Brands intimate apparel business. Adjusted earnings are anticipated to be $3.45 compared with $2.38 earned in the prior-year quarter. This view includes favorable currency impacts of 3 cents per share.
The company expects revenues to increase 1% year over year (up 1% in constant currency) for fiscal 2023. Sales for fiscal 2023 are expected to include a gain of less than 1% from the 53rd week and a negative impact of less than 1% related to the sale of the Heritage Brands intimate apparel business.
The company’s adjusted earnings per share is expected to be $10.45, whereas PVH reported $8.97 in the year-ago quarter. The company also expects to achieve a double-digit adjusted EBIT margin in fiscal 2023.
However, PVH Corp has been witnessing elevated inventory costs and increased investments to support the company’s strategic initiatives, which have been denting margins. High raw material costs and currency headwinds have been taking a toll on the company’s margins. The gross margin for the fiscal fourth quarter is expected to reflect higher product costs, the negative impacts of foreign exchange and abnormally high raw material costs.
Additionally, the company has been witnessing an elevated SG&A expense rate from increased investment-related costs for the DTC and international businesses for the past few quarters. This is likely to have dented the operating margin in the to-be-reported quarter.
PVH Corp has been experiencing higher interest rates stemming from the ongoing tough macroeconomic environment. The higher interest rates are likely to have led to increased interest expenses, which are likely to have dented the company’s bottom line in the to-be-reported quarter.
On the last reported quarter’s earnings call, management predicted interest expenses for the fiscal fourth quarter to be $25 million, up 1% from the year-ago period.
Zacks Model
Our proven model predicts an earnings beat for PVH Corp this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
PVH Corp has an Earnings ESP of +1.82% and a Zacks Rank #2.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
MGM Resorts International MGM currently has an Earnings ESP of +9.93% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports first-quarter 2024 results. The consensus mark for MGM’s quarterly revenues is pegged at $4.2 billion, which suggests growth of 7.3% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGM’s earnings has moved up by a penny to 62 cents per share in the past 30 days. The consensus estimate indicates a 40.9% growth from the year-ago quarter’s reported figure.
Boyd Gaming BYD currently has an Earnings ESP of +1.07% and a Zacks Rank #3. The company is likely to register a decline in the top and bottom lines when it reports first-quarter 2024 numbers. The consensus mark for BYD’s quarterly earnings has been unchanged at $1.57 per share in the past 30 days. The consensus estimate suggests a decline of 8.2% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for Boyd’s quarterly revenues is pegged at $946.8 million, which suggests a decline of 1.8% from the figure reported in the prior-year quarter.
Planet Fitness PLNT currently has an Earnings ESP of +3.19% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2024 numbers. The consensus mark for PLNT’s quarterly earnings has been unchanged in the past 30 days at 50 cents per share. The consensus estimate suggests 22% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Planet Fitness’ quarterly revenues is pegged at $249.6 million, which suggests an increase of 12.3% from the figure reported in the prior-year quarter.
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