Back to top

Analyst Blog

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).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%