PVH Corp. Stock Up 18% on Q4 Earnings & Raised View: Should You Buy?

Core Insights - PVH Corporation's shares increased by 18.10% following the release of its fourth-quarter fiscal 2024 earnings, which, despite a year-over-year decline in sales and earnings, exceeded analysts' expectations and provided a strong outlook for fiscal 2025 [1][3][8] Financial Performance - PVH reported adjusted earnings per share of $3.27 on revenues of$2.37 billion, surpassing analyst projections [3] - International revenues decreased by 6% (3% in constant currency), while North America revenues for Tommy Hilfiger and Calvin Klein rose by 1% year over year [4] - Direct-to-consumer revenues fell by 5% (2% in constant currency), and wholesale revenues also declined by 5% (2% in constant currency) [5] - Gross profit was $1.4 billion, reflecting a 6.7$12.40 and $12.75, an increase from$11.74 per share last year [7] - The earnings growth will be supported by a $500 million stock buyback program aimed at enhancing per-share profitability [8] Strategic Initiatives - PVH is advancing its multi-year PVH+ Plan, focusing on sustainable growth through strengthening core capabilities and enhancing consumer connections for its brands [9] - The plan emphasizes five key drivers: winning with product, enhancing consumer engagement, excelling in a digitally-led marketplace, developing a demand- and data-driven operating model, and driving efficiencies for reinvestment in growth [9][10] - The company aims to position Calvin Klein and TOMMY HILFIGER among the most desirable lifestyle brands by focusing on key growth categories and expanding in high-demand global markets [10]