Monday, March 31, 2025 On the last trading day of calendar Q1, major indexes were mixed. The Dow, which first tested a 6-month bottom, finished up exactly +1.00%, or +417 points — resulting in a more than 900-point swing. Big Tech closed its worst quarter in 3 years, with the Nasdaq dipping another -23 points, -0.14%. The S&P 500 was +0.55% and the small-cap Russell 2000 finished -0.50%. Construction Spending, also for February, comes out tomorrow after the opening bell, too. We are expected to see a sewing ...

PVH (PVH) came out with quarterly earnings of $3.27 per share, beating the Zacks Consensus Estimate of $3.19 per share. This compares to earnings of $3.72 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 2.51%. A quarter ago, it was expected that this owner of the Calvin Klein and Tommy Hilfiger brands would post earnings of $2.61 per share when it actually produced earnings of $3.03, delivering a surprise of 16.09%. Over the ...

Revenue Performance - Fourth quarter revenue decreased 5% to $2.372 billion, exceeding guidance of a 6% to 7% decline[4] - Full year revenue decreased 6% to $8.653 billion, aligning with guidance of a 6% to 7% decline[4] - Total revenue for the quarter ended February 2, 2025, was $2,371.6 million, a decrease of 4.7% compared to $2,489.9 million for the same quarter in 2024[35] - The company reported total revenue for the year ended February 2, 2025, of $4,327.1 million, a decrease from $4,479.5 million for the year ended February 4, 2024[39] - Total revenue for PVH Corp. decreased to $8,652.9 million for the year ended February 2, 2025, down from $9,217.7 million in the prior year, representing a decline of 6.1%[51] Earnings and Profitability - Non-GAAP EPS for the fourth quarter was $3.27, exceeding guidance of $3.05 to $3.20[4] - Non-GAAP EBIT for the full year was $865 million, down from $931 million in 2023, impacted by foreign currency translation[13] - Net income for the quarter was $157.2 million, down 42.2% from $271.8 million in the prior year quarter[35] - Diluted net income per share for the quarter was $2.83, compared to $4.55 in the same quarter last year, reflecting a decline of 37.7%[35] - For the quarter ended February 2, 2025, net income on a non-GAAP basis was $181.4 million, compared to $222.1 million for the quarter ended February 4, 2024, representing a decrease of 18.4%[41] - Diluted net income per common share on a non-GAAP basis for the quarter ended February 2, 2025, was $3.27, down from $3.72 for the same quarter last year, a decline of 12.1%[39] - For the year ended February 2, 2025, net income was $598.5 million, down from $665.0 million the previous year, a decrease of 10.0%[45] - The diluted net income per common share for the year was $10.56, compared to $11.74 for the previous year, indicating a decline of 10.0%[45] Expenses and Costs - Selling, general and administrative expenses for the quarter were $1,156.7 million, compared to $1,216.3 million in the same quarter last year, indicating a decrease of 4.9%[35] - Selling, general and administrative (SG&A) expenses for the quarter ended February 2, 2025, were $1,150.7 million, a decrease of 5.0% compared to $1,211.0 million for the quarter ended February 4, 2024[39] - The company incurred pre-tax restructuring costs totaling $24 million in 2024, primarily related to severance and the simplification of its operating model[27] - The company incurred restructuring costs related to its multi-year initiative to simplify its operating model, which included severance and a gain on the sale of a warehouse and distribution center[37] Tax and Interest - The effective tax rate for 2024 was 20.0% on a GAAP basis, compared to 19.3% in the prior year[12] - The effective tax rate is projected to be approximately 18%[26] - Interest expense for the first quarter of 2025 is projected to increase to approximately $20 million, up from $18 million in the first quarter of 2024[26] Inventory and Assets - Inventory increased 6% compared to the prior year, reflecting a strategic investment in core inventory[9] - Total current assets increased to $3,487.6 million as of February 2, 2025, up from $3,259.7 million a year earlier, marking an increase of 7.0%[46] - Cash and cash equivalents rose to $748.0 million, compared to $707.6 million in the previous year, reflecting a growth of 5.7%[46] - The company's total assets decreased to $11,033.2 million from $11,172.9 million year-over-year, a decline of 1.2%[46] - The company’s total liabilities decreased to $5,892.7 million from $6,054.0 million year-over-year, a reduction of 2.7%[46] - The company’s goodwill and other intangible assets decreased to $5,281.0 million from $5,419.5 million year-over-year, a decline of 2.6%[46] Segment Performance - Tommy Hilfiger North America reported net sales of $1,252.8 million for the year ended February 2, 2025, a slight decrease from $1,262.7 million in the previous year[51] - Calvin Klein North America achieved net sales of $1,120.0 million for the year ended February 2, 2025, compared to $1,112.4 million in the previous year, indicating a modest increase[51] - Tommy Hilfiger International's net sales were $3,218.5 million for the year ended February 2, 2025, a decline of 6.8% from $3,452.9 million in the previous year[56] - Total Calvin Klein revenue was $3,856.7 million for the year ended February 2, 2025, down from $3,914.5 million in the prior year, a decrease of 1.5%[56] Future Projections - Projected 2025 revenue is expected to be flat to slightly increase compared to 2024[20] - Projected 2025 non-GAAP EPS is in the range of $12.40 to $12.75, including a negative impact of approximately $0.20 per share from foreign currency translation[20] - The company is unable to project full year 2025 operating margin and EPS on a GAAP basis due to uncertainties regarding restructuring costs[22] - Constant currency revenue for the first quarter of 2025 is estimated to change flat to a decrease of 1%[57] Operational Initiatives - The company is focusing on improving systems and automation to drive more efficient, cost-effective operations across the organization[37] - The company aims to reduce people costs in its global offices by approximately 10% by the end of 2023 as part of its 2022 cost savings initiative[37]

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying PVH stock? Here's what analysts think: Read This Next: PVH Corp. PVH will release its fourth-quarter financial results after the closing bell on Monday, March 31. Analysts expect the company to report qu ...

Core Viewpoint - PVH Corporation is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2024, with revenues estimated at $2.3 billion, a decrease of 6.1% year-over-year, and earnings per share projected at $3.19, down 14.3% from the previous year [1]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for quarterly revenues is pegged at $2.3 billion, indicating a drop of 6.1% from the prior-year number [1]. - The consensus estimate for earnings is pegged at $3.19 per share, which indicates a decline of 14.3% year over year [1]. - In the last reported quarter, the company delivered an earnings surprise of 16.1%, with a trailing four-quarter earnings surprise of 17.3% on average [2]. Group 2: Operational Challenges - The fourth-quarter results are expected to reflect a challenging operating backdrop due to a calendar shift, including the loss of the 53rd week [3]. - The Heritage Brands segment has been experiencing sluggishness, particularly in the women's intimates business [3]. - The wholesale channel is under pressure, with anticipated softness in orders from retail partners and a more promotional retail environment expected to weigh on profitability [4]. Group 3: Margin and Cost Pressures - The fourth-quarter operating margin is expected to contract by 200 basis points to 10% [5]. - Gross margin is forecasted to decline nearly 200 basis points due to a moderately higher promotional backdrop and elevated freight costs [6]. - Management anticipates a mid-single-digit revenue decrease in the wholesale business, including a 2% decline from the Heritage Intimates business [7]. Group 4: Regional Performance Insights - In Europe, the company foresees a high-single-digit revenue decline in euros, reflecting ongoing macroeconomic challenges [7]. - The Zacks Consensus Estimate for Tommy Hilfiger and Calvin Klein sales is currently pegged at $1.3 billion and $1.02 billion, indicating year-over-year drops of 1.4% and 3.2% respectively [7]. Group 5: Strategic Initiatives - PVH Corp's PVH+ Plan aims to accelerate growth by enhancing core strengths and connecting its brands with consumers [8]. - The company strives to create the best products across significant growth categories and strengthen its presence in global demand spaces [8]. Group 6: Valuation Perspective - PVH Corp's shares are trading at a forward 12-month price-to-earnings ratio of 5.43, below the five-year median of 9.21x and the industry average of 12.02x, presenting an attractive opportunity for investors [10].

Core Viewpoint - PVH Corp. is expected to report a decline in quarterly earnings and revenue for the fourth quarter, with analysts maintaining mixed ratings on the stock and adjusting price targets significantly [1][2]. Financial Performance - PVH is projected to report quarterly earnings of $3.22 per share, down from $3.72 per share in the same period last year [1]. - The company anticipates quarterly revenue of $2.34 billion, compared to $2.49 billion a year earlier [1]. Analyst Ratings - Citigroup analyst Paul Lejuez has maintained a Neutral rating on PVH and lowered the price target from $123 to $72 [2]. - Telsey Advisory Group analyst Dana Telsey has maintained an Outperform rating while cutting the price target from $130 to $90 [2]. Dividend Information - PVH currently offers an annual dividend yield of 0.22%, translating to a quarterly dividend of 4 cents per share, or 15 cents annually [2]. - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 40,000 shares, equating to a total investment of about $2,663,600 [3]. - For a more conservative monthly income goal of $100, an investor would need 8,000 shares, requiring an investment of approximately $532,720 [4]. Stock Price Movement - PVH shares fell by 0.5% to close at $66.59 on Thursday [6].

Core Viewpoint - Wall Street analysts predict that PVH will report a quarterly earnings per share (EPS) of $3.19, reflecting a year-over-year decline of 14.3%, with revenues expected to be $2.34 billion, down 6.1% from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating that analysts have not revised their initial projections during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Revenue- Tommy Hilfiger' will reach $1.28 billion, indicating a decline of 5% year-over-year [5]. - The forecast for 'Revenue- Total Calvin Klein' is $1.02 billion, suggesting a decrease of 4.5% compared to the prior year [5]. - 'Revenue- Heritage Brands Wholesale' is expected to be $43.65 million, reflecting a significant year-over-year decline of 41.3% [5]. - For 'Revenue- Tommy Hilfiger North America', the estimate is $393.19 million, indicating a slight decline of 1.9% year-over-year [6]. - 'Revenue- Calvin Klein North America' is projected at $358.84 million, with a minimal change of -0.3% [6]. - 'Revenue- Calvin Klein International' is expected to reach $658.03 million, reflecting a year-over-year decline of 6.6% [6]. - The consensus estimate for 'Revenue- Tommy Hilfiger International' stands at $890.79 million, indicating a decline of 6.3% from the previous year [7]. Stock Performance - Over the past month, shares of PVH have decreased by 13.1%, while the Zacks S&P 500 composite has only declined by 2.9% [7]. - PVH currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [7].

Group 1 - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a notable background in investment, having founded Tradition Capital Management in 2000 and received multiple accolades for his performance [1] - Halliburton has extensive experience in the investment field, starting his career at Merrill Lynch in 1986 and earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] Group 2 - Halliburton earned the Chartered Financial Analyst designation in 1994 and was recognized as the top-performing portfolio manager at Brundage, Story and Rose [1] - His investment strategy, known as "Disciplined Growth Strategy," outperformed the S&P 500 during the 1990s bull market [1] - Halliburton was noted as the youngest partner at his firm and received high praise from senior managing partners for his investment acumen [1]

Company Overview - PVH Corp. (NYSE: PVH) is engaged in selling apparel, footwear, accessories, and other products under the Tommy Hilfiger and Calvin Klein brands [1] Sales Distribution - In FY2023, approximately 48% of PVH's sales were generated from Europe, 29% from the United States, and 18% from the Asia Pacific region [1]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The author has a beneficial long position in GIII shares, indicating a personal investment interest in the company [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship with any company whose stock is discussed, reinforcing the independence of the analysis [2]