Prior to the presentation at the ICR XChange Conference to be held on Jan 13, PVH Corp. (PVH - Free Report) reaffirmed its earnings per share (EPS) guidance for the fourth quarter and fiscal 2013 but lowered the sales outlook for both the periods.
The company has reiterated its non-GAAP earnings guidance of $1.40 and $7.00 per share for the fourth quarter and fiscal 2013, respectively that was announced at its third-quarter earnings release. Currently, the Zacks Consensus Estimate for both the periods is pegged at $1.45 and $7.04 per share, respectively, above the company’s forecast.
However, the company has lowered its previous non-GAAP sales guidance of $2.08 billion for the fourth quarter and $8.24 billion for fiscal 2013 to $2.06 billion and $8.22 billion, respectively. At present, the Zacks Consensus Estimate for both the periods is pegged at $2,080 million and $8,244 million.
Most retailers reported lackluster results for the holiday shopping period in 2013, followed by lowered forecasts, as retailers suffered from reduced traffic, an intensified promotional environment, lesser shopping days between Thanksgiving and Christmas, numerous icy storms and sluggish consumer spending. Retailers that lowered their guidance battered by the holiday results include Family Dollar Stores Inc. , American Eagle Outfitters Inc. (AEO - Free Report) and L Brands Inc. (LB - Free Report) .
In early Dec 2013, PVH Corp. posted better-than-expected third-quarter results. The company's third-quarter fiscal 2013 adjusted earnings of $2.30 per share beat its own guidance of $2.25 and the Zacks Consensus Estimate of $2.26. In the quarter, PVH Corp.’s total revenue rose 37.5% year over year to $2,259.1 million and surpassed the Zacks Consensus Estimate of $2,222.0 million.
PVH Corp. is now focused on brand building, asset management, global expansion and effective implementation of business strategies to drive long-term growth. We believe that the company is moving in the right direction, which will help it to exploit opportunities in the lifestyle apparel market. However, lingering macroeconomic factors could dampen its growth in the near term.
Currently, PVH Corp. carries Zacks Rank #3 (Hold).