Calvin Klein-Owner PVH (PVH) Surges After Smashing Q2 Profit Views and Guidance, Analysts Expect Shares to Outperform
Shares of PVH Corp. (NYSE: PVH), which owns the Calvin Klein brand, are up more than 7% in pre-open Wednesday after the company presented stronger-than-expected Q2 results.
PVH reported Q2 EPS of $2.72 to smash the analyst consensus of $1.20. Revenue for the quarter came in at $2.31 billion versus the consensus estimate of $2.14 billion.
“We delivered another quarter of high-quality growth and strong performance above our guidance. This was driven by disciplined execution of our key strategic priorities, led by Calvin Klein and TOMMY HILFIGER and our international markets, focused on product strength and winning in the marketplace, super-charged by e-commerce. Our international performance was particularly strong, which performed above 2019 pre-pandemic levels. Based on our strong first half results, along with strong underlying trends, we are raising our full year outlook, which continues to reflect gross margins above 2019 pre-pandemic levels and further improvement in our operating margin,” Stefan Larsson, Chief Executive Officer, commented.
PVH forecasts FY2021 EPS of $8.50 to again beat the consensus of $6.75. Revenue in 2021 is projected to increase 26% to 28% (increase 24% to 26% on a constant currency basis) as compared to 2020.
Goldman Sachs analyst Brooke Roach reiterated a Buy rating and a $127.00 per share price target on the stock.
“PVH reported adjusted F2QEPS of $2.72, well ahead of GS/FactSet consensus of $1.24/$1.20… On balance, we expect shares to outperform on the strong F2Q sales and margin-driven beat and healthy near-term outlook,” Roach said in a note sent to clients.
Credit Suisse analyst Michael Binetti raised the price target to $145.00 per share from $130.00 on a strong Q2 report and the above-consensus guidance.
“We were positively surprised to see PVH confident enough to raise 2021 EPS significantly above our above - Consensus est (we were $7.00, Street, $6.68) considering increasing volatility in global supply chains. More importantly, the significant EPS revisions so far are still just due to reversing COVID impacts. Said differently, investors still haven’t heard the new CEO deliver his strategy to change the business (Analyst Day will be April 2022),” Binetti wrote in a client note.