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PVH Corp Up More Than 44% in 3 Months on Solid Online Show
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Shares of PVH Corp. (PVH - Free Report) have soared 44.2% in the past three months, outperforming the industry’s growth of 12.9%. The stock’s bullish run on the bourses can be attributable to the robust online performance that provided some cushion during second-quarter fiscal 2020.
Notably, impressive performance in the digital platform has made up for the lost sales during temporary store closures since the onset of the coronavirus pandemic. Even as stores reopened after almost seven weeks, digital sales momentum continued as more and more consumers have taken to the digital platform. As a result, e-commerce sales improved more than 50% year over year during second-quarter fiscal 2020, driven by strong online sales in all regions. Also, solid traffic and higher conversions contributed to digital growth.
Going ahead, management envisions online sales to represent 20% of total sales over the next few years. In fact, the e-commerce business continues to retain its momentum in the third quarter to date.
Other retailers benefiting from the sudden surge in online sales include Hibbett Sports (HIBB - Free Report) , Gap (GPS - Free Report) and American Eagle (AEO - Free Report) . Notably, Hibbett’s online sales advanced 212.2% year over year in the fiscal second quarter on the back of a rise in new customers. Also, Gap’s e-commerce channel recorded 95% growth during the fiscal second quarter. Similarly, American Eagle witnessed consolidated digital sales growth of 74% in second-quarter fiscal 2020, driven by a rise in new customers, solid traffic and higher conversions.
PVH Corp has been benefiting from strength in Calvin Klein and Tommy Hilfiger brands. Going forward, management’s optimism in the underlying power of these brands makes it poised for long-term growth. Apart from these, majority of PVH Corp’s stores have reopened, which is likely to reflect in its third-quarter performance. These endeavors are likely to aid the company’s top line in the near term.
However, significant disruption stemming from the COVID-19 pandemic is likely to prevail. This is expected to continue causing significant declines in shipments, which in turn hurt the wholesale revenues. The third-quarter to-date sales have declined 15% in this channel. Moreover, reduced store hours and lower occupancy levels have somewhat affected the initial growth in sales volume in the fiscal third quarter. Also, it expects the top and bottom lines in the second half of fiscal 2020 to be hurt by COVID-19 impacts, with a revenue decline of nearly 25% year over year.
Wrapping Up
Although weakness in the top line due to COVID-19 woes persists, we hope that sturdy digital growth and reopened stores help this Zacks Rank #3 (Hold) stock maintain momentum amid this crisis. In fact, a VGM Score of B and a long-term earnings growth rate of 9.6% raise optimism in the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
PVH Corp Up More Than 44% in 3 Months on Solid Online Show
Shares of PVH Corp. (PVH - Free Report) have soared 44.2% in the past three months, outperforming the industry’s growth of 12.9%. The stock’s bullish run on the bourses can be attributable to the robust online performance that provided some cushion during second-quarter fiscal 2020.
Notably, impressive performance in the digital platform has made up for the lost sales during temporary store closures since the onset of the coronavirus pandemic. Even as stores reopened after almost seven weeks, digital sales momentum continued as more and more consumers have taken to the digital platform. As a result, e-commerce sales improved more than 50% year over year during second-quarter fiscal 2020, driven by strong online sales in all regions. Also, solid traffic and higher conversions contributed to digital growth.
Going ahead, management envisions online sales to represent 20% of total sales over the next few years. In fact, the e-commerce business continues to retain its momentum in the third quarter to date.
Other retailers benefiting from the sudden surge in online sales include Hibbett Sports (HIBB - Free Report) , Gap (GPS - Free Report) and American Eagle (AEO - Free Report) . Notably, Hibbett’s online sales advanced 212.2% year over year in the fiscal second quarter on the back of a rise in new customers. Also, Gap’s e-commerce channel recorded 95% growth during the fiscal second quarter. Similarly, American Eagle witnessed consolidated digital sales growth of 74% in second-quarter fiscal 2020, driven by a rise in new customers, solid traffic and higher conversions.
PVH Corp has been benefiting from strength in Calvin Klein and Tommy Hilfiger brands. Going forward, management’s optimism in the underlying power of these brands makes it poised for long-term growth. Apart from these, majority of PVH Corp’s stores have reopened, which is likely to reflect in its third-quarter performance. These endeavors are likely to aid the company’s top line in the near term.
However, significant disruption stemming from the COVID-19 pandemic is likely to prevail. This is expected to continue causing significant declines in shipments, which in turn hurt the wholesale revenues. The third-quarter to-date sales have declined 15% in this channel. Moreover, reduced store hours and lower occupancy levels have somewhat affected the initial growth in sales volume in the fiscal third quarter. Also, it expects the top and bottom lines in the second half of fiscal 2020 to be hurt by COVID-19 impacts, with a revenue decline of nearly 25% year over year.
Wrapping Up
Although weakness in the top line due to COVID-19 woes persists, we hope that sturdy digital growth and reopened stores help this Zacks Rank #3 (Hold) stock maintain momentum amid this crisis. In fact, a VGM Score of B and a long-term earnings growth rate of 9.6% raise optimism in the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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