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PVH Corp's Latest Deal with Li & Fung to Enhance Supply Chain
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In an effort to enhance its supply chain, PVH Corp. (PVH - Free Report) recently inked a deal with the leading consumer goods design, development, sourcing and logistics company – Li & Fung Limited. This will transform the existing non-exclusive buying agency deal into a fresh strategic collaboration, thereby exiting the previous agreement.
Per the latest contract, which is expected to close on Jul 1, 2017, Li & Fung will offer greater value-added services to PVH. Also, this symbiotic transaction will be focused on using the latest technology and knowledge, which is likely to improve PVH’S supply chain. The latest sourcing contract is in sync with PVH’s goal of delivering at greater speed, and accelerating the enrichment of its collection as per the changing customer preferences.
PVH has long been committed toward strengthening its supply chain network and making it more efficient in order to match up with the ever-changing trends in the retail space. In a similar move, PVH acquired True&Co, which is a direct-to-consumer intimate apparel online retailer. This deal, which was announced last week, underscored PVH’s focus on making innovations and refining consumer experience.
Further, keeping pace with the evolving trends, PVH undertook several necessary initiatives to stay afloat in a challenging macroeconomic environment which helped it to sustain solid momentum in fourth-quarter fiscal 2016. While sales marked its second consecutive beat, earnings kept its positive surprise streak alive for the 11th time in the fourth quarter.
Results continued to gain from solid momentum at the company’s premium Calvin Klein and Tommy Hilfiger brands. However, a volatile macro environment, intense promotional activities and foreign currency headwinds continued to be major dampeners for this Zacks Rank #4 (Sell) company. These headwinds are expected to persist in the long run as well.
Nonetheless, management believes that the company’s superb execution, continued investments in brands and international platforms should keep it going. This led management to provide a decent outlook for the first quarter and fiscal 2017.
The company projects reported revenue growth of 2% and constant-currency revenues growth of 4% in both first quarter and fiscal 2017. Adjusted earnings per share are expected in the range of $1.58–$1.60 in the fiscal first quarter and $7.30–$7.40 in fiscal 2017. Earnings are expected to include 10 cents per share and 40 cents per share negative impact from currency headwinds, respectively, for both periods.
Revenues in both periods are expected to bear the brunt of Mexico deconsolidation and the licensing agreement with G-III Apparel Group, Ltd. (GIII - Free Report) .
Notably, shares of the company have gained 6.3% after its recently reported fourth-quarter results. Moreover, PVH has outperformed the Zacks categorized Textile-Apparel Manufacturing industry, with a return of 4.7% in the last one year as against the industry’s downside of 24.3%.
Children's Place has an average positive earnings surprise of 39% in the trailing four quarters. The stock has a long-term growth rate of 10.3%.
Kate Spade, with long-term earnings per share growth rate of 28.3%, has delivered positive earnings surprise in the last two quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emergingphenomenon and 6 tickers for taking advantage of it. If you don't buy now, you maykick yourself in 2020. Click here for the 6 trades >>
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PVH Corp's Latest Deal with Li & Fung to Enhance Supply Chain
In an effort to enhance its supply chain, PVH Corp. (PVH - Free Report) recently inked a deal with the leading consumer goods design, development, sourcing and logistics company – Li & Fung Limited. This will transform the existing non-exclusive buying agency deal into a fresh strategic collaboration, thereby exiting the previous agreement.
Per the latest contract, which is expected to close on Jul 1, 2017, Li & Fung will offer greater value-added services to PVH. Also, this symbiotic transaction will be focused on using the latest technology and knowledge, which is likely to improve PVH’S supply chain. The latest sourcing contract is in sync with PVH’s goal of delivering at greater speed, and accelerating the enrichment of its collection as per the changing customer preferences.
PVH has long been committed toward strengthening its supply chain network and making it more efficient in order to match up with the ever-changing trends in the retail space. In a similar move, PVH acquired True&Co, which is a direct-to-consumer intimate apparel online retailer. This deal, which was announced last week, underscored PVH’s focus on making innovations and refining consumer experience.
Further, keeping pace with the evolving trends, PVH undertook several necessary initiatives to stay afloat in a challenging macroeconomic environment which helped it to sustain solid momentum in fourth-quarter fiscal 2016. While sales marked its second consecutive beat, earnings kept its positive surprise streak alive for the 11th time in the fourth quarter.
Results continued to gain from solid momentum at the company’s premium Calvin Klein and Tommy Hilfiger brands. However, a volatile macro environment, intense promotional activities and foreign currency headwinds continued to be major dampeners for this Zacks Rank #4 (Sell) company. These headwinds are expected to persist in the long run as well.
Nonetheless, management believes that the company’s superb execution, continued investments in brands and international platforms should keep it going. This led management to provide a decent outlook for the first quarter and fiscal 2017.
The company projects reported revenue growth of 2% and constant-currency revenues growth of 4% in both first quarter and fiscal 2017. Adjusted earnings per share are expected in the range of $1.58–$1.60 in the fiscal first quarter and $7.30–$7.40 in fiscal 2017. Earnings are expected to include 10 cents per share and 40 cents per share negative impact from currency headwinds, respectively, for both periods.
Revenues in both periods are expected to bear the brunt of Mexico deconsolidation and the licensing agreement with G-III Apparel Group, Ltd. (GIII - Free Report) .
Notably, shares of the company have gained 6.3% after its recently reported fourth-quarter results. Moreover, PVH has outperformed the Zacks categorized Textile-Apparel Manufacturing industry, with a return of 4.7% in the last one year as against the industry’s downside of 24.3%.
Stocks to Consider
Some better-ranked stocks in the apparel/shoe space include The Children's Place, Inc. (PLCE - Free Report) and Kate Spade & Company , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Children's Place has an average positive earnings surprise of 39% in the trailing four quarters. The stock has a long-term growth rate of 10.3%.
Kate Spade, with long-term earnings per share growth rate of 28.3%, has delivered positive earnings surprise in the last two quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emergingphenomenon and 6 tickers for taking advantage of it. If you don't buy now, you maykick yourself in 2020. Click here for the 6 trades >>