Robert Way Shares of PVH Corp. ( NYSE: PVH ) have been a strong but volatile performer over the past year, rising by over 50%. PVH shares did fall sharply after reporting its last set of quarterly results, but I urged investors to buy the dip, and since then, the stock has gained about 10%.
I argued we were likely to see the company outperform conservative guidance, and Tuesday afternoon, PVH did raise EPS guidance this year to my anticipated range. Shares are largely flat in response after-hours and near my low-$120’s price target, making now a good time to revisit the stock. I am raising my price target and would still be a buyer.
Seeking Alpha In the company’s first quarter , PVH earned $2.45, which beat estimates by $0.26.
Revenue was down 10% from last year at $1.95 billion; excluding divestitures, revenue was down by 7%. Adjusted EPS excludes a $0.
10 gain from its Heritage Brands lingerie brand sale. Q1 results were $0.30 above guidance.
Sales fell by $206 million, but gross profit fell just $52 million as margins rose 350bps to 61.4%, due to input cost deflation and the decision to reduce sales to low-margin wholesale channels. Management also noted it is seeing improved pricing power.
Additionally, SG&A was down over 4% as management continues to manage costs carefully. We do continue to see meaningful geographic divergence with the US leading the way, Asia was also positive while PVH has strategically reduced low-margin sales in Europe. North American revenue ros.
