PVH Corporation (NYSE:PVH) Q1 2024 Earnings Conference Call June 5, 2024 9:00 AM ET Company Participants Stefan Larsson - Chief Executive Officer Zac Coughlin - Chief Financial Officer Sheryl Freeman - Senior Vice President, Investor Relations Conference Call Participants Matthew Boss - JP Morgan Bob Drbul - Guggenheim Michael Binetti - Evercore ISI Jay Sole - UBS Dana Telsey - Telsey Group John Kernan - TD Cowen Ike Boruchow - Wells Fargo Operator Good morning everyone and welcome to today’s PVH first quar ...

PVH (PVH) reported $1.95 billion in revenue for the quarter ended April 2024, representing a year-over-year decline of 9.6%. EPS of $2.45 for the same period compares to $2.14 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.93 billion, representing a surprise of +1.23%. The company delivered an EPS surprise of +14.49%, with the consensus EPS estimate being $2.14. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

PVH (PVH) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $2.14 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 14.49%. A quarter ago, it was expected that this owner of the Calvin Klein and Tommy Hilfiger brands would post earnings of $3.51 per share when it actually produced earnings of $3.72, delivering a surprise of 5.98%. Over the l ...

Revenue Performance - First quarter revenue decreased 10% to $1.952 billion compared to the prior year period, exceeding guidance of a decrease of approximately 11%[1] - Total revenue for the quarter ended May 5, 2024, was $1,951.9 million, a decrease of 9.5% compared to $2,157.9 million for the same period in 2023[24] - Revenue for Tommy Hilfiger North America was $271.4 million, up from $266.7 million, indicating a growth of 2.8%[37] - The total revenue for Calvin Klein was $133.0 million, up from $102.6 million, marking a growth of approximately 29.6%[38] - Tommy Hilfiger International revenue decreased by 14.0% to $716.6 million, while Total Tommy Hilfiger revenue decreased by 9.9% to $1,013.3 million[43] - Calvin Klein International revenue decreased by 1.9% to $601.5 million, with Total Calvin Klein revenue remaining relatively stable, decreasing only 0.1% to $886.8 million[43] - Owned and Operated Retail Stores revenue increased by 2.9% to $697.5 million, while Owned and Operated Digital Commerce revenue decreased by 6.5% to $148.4 million[43] Earnings and Profitability - GAAP EPS for the first quarter was $2.59, exceeding guidance of approximately $2.15, while non-GAAP EPS was $2.45, also exceeding guidance[1] - Net income for the quarter was $151.4 million, up from $136.0 million in the prior year, resulting in a diluted net income per share of $2.59 compared to $2.14[24] - Earnings before interest and taxes (EBIT) for the quarter was $205.1 million, an increase from $198.8 million in the same quarter last year[24] - The company reported a non-GAAP net income of $142.9 million for the quarter, with a diluted net income per share of $2.45 after excluding a pre-tax gain of $10.0 million related to the Heritage Brands intimates transaction[28][30] - The company reported a net income of $663.6 million for the full year 2023, with diluted net income per common share of $10.76 under GAAP[48] Cost Management - Selling, general and administrative expenses decreased to $1,017.3 million from $1,064.0 million year-over-year, reflecting a cost management strategy[24] - The company is undergoing a cost savings initiative aimed at reducing personnel costs by approximately 10% by the end of 2023[48] - Interest expense is projected to decrease to approximately $75 million compared to $88 million in 2023, primarily due to debt repayment[1] - The effective tax rate is projected to be approximately 20%, down from previous guidance of approximately 21%[1] Inventory and Asset Management - Inventory decreased 22% compared to the prior year period, aligning with proactive inventory management strategies[1] - Inventory levels decreased from $1,718.1 million to $1,346.8 million, a reduction of about 21.6%[35] - Total current assets fell from $3,353.2 million to $2,911.9 million, a decrease of about 13.1% year-over-year[35] - Total assets decreased from $11,491.2 million on April 30, 2023, to $10,788.7 million on May 5, 2024, representing a decline of approximately 6.1%[35] - Accounts payable and accrued expenses decreased from $1,924.7 million to $1,561.3 million, a decline of approximately 18.9%[35] Strategic Focus and Challenges - The company is focusing on divesting non-core assets, including the recent sale of the Heritage Brands women's intimate apparel business to concentrate on Calvin Klein and Tommy Hilfiger brands[24] - The company highlighted ongoing challenges such as inflationary pressures and supply chain disruptions affecting sales and profitability[24] - Future outlook remains cautious due to potential economic uncertainties and the impact of geopolitical events, including the ongoing war in Ukraine[24] Guidance and Outlook - Full year revenue outlook reaffirms a projected decrease of 6% to 7%, with operating margin expected to remain approximately flat compared to 10.1% in 2023[1] - EPS guidance for the full year is raised to a range of $11.15 to $11.40 on a GAAP basis, compared to previous guidance of $10.75 to $11.00[1] - The company expects a GAAP revenue decrease of 6% to 7% for the full year 2024, with a similar decrease projected for the second quarter[47] - Estimated GAAP net income per common share for 2024 is projected to be between $11.15 and $11.40, with a non-GAAP basis estimate of $11.00 to $11.25[46] - The impact of foreign exchange on revenue is expected to be a negative 1% for the second quarter of 2024[47] - The company recorded a pre-tax gain of $15 million related to the sale of the Heritage Brands women's intimates business in the first quarter of 2024[44]

Core Viewpoint - PVH Corporation is set to report its first-quarter fiscal 2024 results on June 5, with expected revenues of $1.9 billion, reflecting a 10.7% decline year-over-year, while earnings per share are estimated to remain flat at $2.14 [1][2] Financial Performance - In the last reported quarter, PVH Corporation achieved an earnings surprise of 6%, with an average trailing four-quarter earnings surprise of 9.2% [2] - Revenue projections indicate an 11% year-over-year decline, influenced by a 3% reduction from the Heritage Brands sale, with specific sales declines anticipated for Tommy Hilfiger (10.2%), Calvin Klein (11.2%), and Heritage Brands (10.7%) [6] Strategic Initiatives - The company is focusing on digital growth through a holistic distribution strategy for its brands, emphasizing digital and direct-to-consumer channels, as well as wholesale partnerships [3] - Management is implementing the PVH+ Plan, which is expected to yield significant cost efficiencies and improved productivity [4] Market Conditions - PVH Corporation is experiencing elevated inventory costs and increased investments, which are negatively impacting margins, alongside high raw material costs and currency headwinds [5] - The gross margin is anticipated to reflect the pressures from higher product costs and foreign exchange impacts [5] Valuation Metrics - PVH Corporation is trading at a forward 12-month price-to-earnings ratio of 10.01x, significantly below its five-year high of 124.50x and the industry average of 29.58x, indicating an attractive investment opportunity [8] - The company's current Value Score of A supports this positive valuation outlook [8] Stock Performance - Over the past six months, PVH Corporation's shares have increased by 15.8%, contrasting with a 15.7% decline in the industry [9]

Core Viewpoint - The upcoming earnings report from PVH is anticipated to show quarterly earnings of $2.14 per share, with revenues expected to decline by 10.7% year over year to $1.93 billion [1]. Earnings Estimates - There has been a downward revision of 3.2% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Revenue estimates for key segments include: - Tommy Hilfiger: $1.02 billion, down 9.4% year over year [5]. - Heritage Brands Wholesale: $83.20 million, down 43% year over year [5]. - Total Calvin Klein: $830.94 million, down 6.4% year over year [5]. - Royalty revenue: $80.40 million, down 5.1% year over year [6]. - Advertising and other revenue: $21.40 million, down 3.2% year over year [6]. - Net sales: $1.82 billion, down 11.3% year over year [6]. Regional Revenue Estimates - Revenue estimates for North America and International segments include: - Tommy Hilfiger North America: $285.85 million, down 1.9% year over year [7]. - Calvin Klein North America: $272.30 million, down 0.7% year over year [7]. - Calvin Klein International: $558.65 million, down 8.9% year over year [7]. - Tommy Hilfiger International: $732.36 million, down 12.1% year over year [8]. Stock Performance - PVH shares have increased by 5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.2% [8].

Core Viewpoint - Wall Street anticipates flat earnings for PVH in the upcoming quarter, with a consensus EPS estimate of $2.14, unchanged from the previous year, and revenues expected to decline by 10.7% to $1.93 billion [1][3]. Earnings Report Expectations - The earnings report is scheduled for June 4, 2024, and could lead to stock price movement depending on whether the actual results exceed or fall short of expectations [2]. - Management's discussion during the earnings call will be crucial in shaping future earnings expectations and stock price sustainability [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.19% over the last 30 days, indicating a reassessment by analysts [4]. - The Zacks Earnings ESP model suggests that recent estimate revisions may provide insights into business conditions leading up to the earnings release [5][6]. Earnings ESP Analysis - PVH has a positive Earnings ESP of +0.70%, indicating a likelihood of beating the consensus EPS estimate, although it currently holds a Zacks Rank of 3 [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. Historical Performance - PVH has consistently beaten consensus EPS estimates, achieving a surprise of +5.98% in the last reported quarter and surpassing estimates in all of the last four quarters [12][13]. Conclusion - While PVH is positioned as a strong candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of the earnings release [14][16].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering PVH (PVH) , which belongs to the Zacks Textile - Apparel industry.This owner of the Calvin Klein and Tommy Hilfiger brands has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.30%.For the last reported quarter, PVH came out with earni ...

It has been about a month since the last earnings report for PVH (PVH) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is PVH due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. PVH Q4 Earnings Beat Estimates, Revenues Flat Y/YPVH Corp. repor ...

In the latest trading session, PVH (PVH) closed at $106.78, marking a +0.44% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.88%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq decreased by 2.05%.Heading into today, shares of the owner of the Calvin Klein and Tommy Hilfiger brands had lost 22.94% over the past month, lagging the Consumer Discretionary sector's loss of 5.74% and the S&P 500's loss of 2.57% in that time.Marke ...