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Shares of Tommy Hilfiger and Calvin Klein parent PVH Corp. tumbled on Tuesday - here's why
Shares of PVH Corp. (NYSE:PVH) are trading lower after the company issued weak first-quarter guidance. The company reported fourth-quarter adjusted earnings of $3.72 per share, beating Wall Street estimates of $3.53. Quarterly revenue was $2.49 billion, beating the analyst consensus estimate of $2.42 billion. Sales were flat year-over-year, exceeding expectations of a decline of 3% to 4%. For the quarter, Tommy Hilfiger revenue grew 1% and Calvin Klein revenue grew 4%.
PVH Corp. (NYSE:PVH) shares were lower after the company issued weak Q1 guidance.
The company reported fourth-quarter adjusted EPS of $3.72, beating Wall Street estimates of $3.53.
Quarterly revenues of $2.49 billion exceeded the analyst consensus estimate of $2.42 billion. Sales were flat year-over-year, exceeding expectations of a decline of 3% to 4%.
This quarter.Tommy Hilfiger Revenue growth of 1%.Calvin KleinRevenues grew by $4%, and theHeritage BrandsRevenues declined by 41%.
Despite the challenging macroeconomic environment in Europe, which particularly impacted the wholesale business, growth in the Asia Pacific region resulted in a 4% increase in overall revenue from the Company's international operations.
Quarterly gross margins increased to 60.31 TP3T from 55.91 TP3T in the same period last year. This growth reflects favorable changes in freight rates, regional and channel mix and lower product costs. This growth reflects lower freight rates, favorable changes in geographic and channel mix, and the benefits of lower product costs.
As the Company continued to proactively manage inventory levels, inventory decreased by 21% year-on-year, which was in line with expectations.
Stock Loop: The Company purchased 2.5 million shares of common stock for $282 million in the fourth quarter of 2023, bringing the total amount of share repurchases for the full year of 2023 to 5.7 million shares for $550 million.
On March 27, 2024, the Board of Directors approved an extension through July 2028 of the $2 billion stock exchange program.
outlook PVH expects first quarter EPS to be $2.15, compared to $2.14 in the first quarter of 2023 (analysts expect $2.59). First quarter revenue is expected to decline by approximately 11%.
The Company's full year 2024 earnings per share are expected to be in the range of $10.75 to $11.00. Revenues are expected to decrease by 6% to 7% compared to 2023. operating margins are expected to remain flat at 10.1% in 2023.
Price Trend: On Tuesday, PVH shares fell 24.0% to $106.25.
Image from Wikimedia Commons
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This article Tommy Hilfiger and Calvin Klein Parent Company PVH Corp. Shares Plunge Tuesday - Here's Why originally appeared on Benzinga.com.
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