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On Jul 13, Zacks Investment Research upgraded PVH Corporation (PVH - Analyst Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

PVH Corp. has been witnessing rising earnings estimates on the back of strong first-quarter fiscal 2013 results and an impressive guidance for the current fiscal. Moreover, this well-known apparel retailer surpassed the Zacks Consensus Estimate in the last 28 quarters with an average beat of 10.1%. The long-term expected earnings growth rate for this stock is 14.3%.

PVH Corp. came up with strong first-quarter results on Jun 12, 2013, with adjusted earnings per share rising 43.6% year over year to $1.91, thereby beating its own guidance of $1.33 and the Zacks Consensus Estimate of $1.37. The upside was primarily driven by strong revenue growth resulting from the acquisition of The Warnaco Group, Inc. and improved margins.

During the quarter, total revenue of the company (including sales return of $30.0 million related to certain Warnaco wholesale customers) jumped 33.8% to $1,910.2 million, compared with $1,427.4 million in the year-ago quarter. The year-over-year surge in revenue was attributable to robust sales performances across all segments of the company.

Based on solid first-quarter performance, the company remains optimistic about achieving its targeted sales and earnings per share guidance for fiscal 2013. Therefore, PVH Corp. reaffirmed its fiscal 2013 revenue and earnings outlook of $8.2 billion and $7.00 per share, respectively.

The Zacks Consensus Estimate for fiscal 2013 increased 1.1% to $7.10 per share as most of the estimates were revised upwards over the last 60 days. For fiscal 2014, the estimates moved higher over the same time period, lifting the Zacks Consensus Estimate by 1.2% to $8.23 per share.

Other Stocks to Consider

Apart from PVH Corp., other stocks worth a look in the retail industry include G-III Apparel Group, Ltd. (GIII - Snapshot Report), Maidenform Brands, Inc. and Michael Kors Holding Ltd. (KORS - Analyst Report). All of them carry a Zacks Rank #2 (Buy).

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