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Here's How PVH Corp (PVH) is Placed Ahead of Q1 Earnings

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PVH Corporation (PVH - Free Report) is expected to register year-over-year top and bottom-line growth when it reports first-quarter fiscal 2021 results on Jun 2. The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 82 cents per share, suggesting a substantial year-over-year growth from a loss of $3.03 reported in the year-ago quarter. The consensus mark for earnings has been unchanged in the past 30 days.

The consensus mark for quarterly revenues is pegged at $1.92 billion, implying 43.1% growth from the year-ago quarter’s reported number.

In the last reported quarter, the company delivered a negative earnings surprise of 2.7%. However, its bottom line surpassed estimates by 121.3%, on average, over the trailing four quarters.

Key Factors to Note

Despite the COVID-related headwinds, PVH Corp has been witnessing impressive trends in the digital arena as consumers have shifted to online shopping. E-commerce sales are expected to have witnessed gains from the company’s expanded omni-channel capabilities and improved inventory.

Moreover, the digital business is anticipated to have witnessed strong growth across all regions and brands, owing to robust online demand, particularly for casual wear. Further, the company’s initiatives to expand its digital business and strengthen its network with third-party digital partners are expected to have aided digital sales in the fiscal first quarter.

PVH Corp. Price and EPS Surprise

 

PVH Corp. Price and EPS Surprise

PVH Corp. price-eps-surprise | PVH Corp. Quote

On the last reported quarter’s earnings call, management anticipated year-over-year revenue growth of 42-44% (up 34-36% at cc) for the fiscal first quarter. Adjusted earnings per share are expected to be 80-83 cents for the fiscal first quarter, indicating an improvement from a loss of $3.03 per share reported in the year-ago quarter.

Moreover, the company predicted revenues for the international businesses to surpass the 2019 pre-pandemic revenue levels in the first half of 2021. Also, management expects to cut its workforce in some international markets along with reducing real estate footprint to manage its cost structure.

However, sluggish store traffic due to a lack of international tourists in North America remains a headwind. On its last reported quarter’s earnings call, the company anticipated North America businesses to remain soft, owing to sluggishness in international tourism. Also, it expects continued adverse impacts of COVID-19 particularly due to store closures in Europe to put pressure on revenues and earnings in the first quarter of fiscal 2021.

Zacks Model

Our proven model does not conclusively predict an earnings beat for PVH Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PVH Corp has a Zacks Rank #4 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:

Rocky Brands, Inc. (RCKY - Free Report) has an Earnings ESP of +46.99% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +1.78% and it presently flaunts a Zacks Rank #1.

Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +0.17% and it currently sports a Zacks Rank #1.

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