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PVH Corp (PVH) to Report Q2 Earnings: What's in the Cards?
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PVH Corporation (PVH - Free Report) is expected to register year-over-year top and bottom-line growth when it reports second-quarter fiscal 2021 results on Jun 2. The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at $1.17 per share, suggesting substantial year-over-year growth from 13 cents 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 $2.14 billion, implying 35.2% growth from the year-ago quarter’s reported number.
In the last reported quarter, the company delivered an earnings surprise of 134.2%. Its bottom line surpassed estimates by 171.7%, on average, over the trailing four quarters.
PVH Corp has been gaining from brand strength, particularly Calvin Klein and Tommy Hilfiger, backed by market share growth and strong demand. It has been witnessing an impressive performance in the digital platform as customers shifted to online purchases amid the COVID-19 pandemic. Revenues in the digital commerce business are likely to have been aided by robust growth across all regions and brands in the fiscal second quarter as well. The company’s initiatives to expand its digital business and strengthen its network with third-party digital partners are expected to have contributed to digital sales growth in the fiscal second quarter.
It has been witnessing favorable margin trends in the past few quarters, which are expected to have continued in the fiscal second quarter. The gross margin is likely to have benefited from reduced promotional selling, positive shift to regional sales mix and lower inventory reserves. This is expected to have resulted in gross margin expansion across all regions and brands. Expense leverage across all regions and brands is expected to get reflected in EBIT margin growth in the to-be-reported quarter.
On the last reported quarter’s earnings call, management anticipated year-over-year revenue growth of 34-36% (up 29-31% at cc) for the fiscal second quarter. Adjusted earnings per share are expected to be $1.15-$1.18 per share, suggesting a rise from 13 cents reported in the prior-year quarter.
However, sluggish store traffic due to a lack of international tourists in North America is expected to have been 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.
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 #3 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:
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PVH Corp (PVH) to Report Q2 Earnings: What's in the Cards?
PVH Corporation (PVH - Free Report) is expected to register year-over-year top and bottom-line growth when it reports second-quarter fiscal 2021 results on Jun 2. The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at $1.17 per share, suggesting substantial year-over-year growth from 13 cents 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 $2.14 billion, implying 35.2% growth from the year-ago quarter’s reported number.
In the last reported quarter, the company delivered an earnings surprise of 134.2%. Its bottom line surpassed estimates by 171.7%, on average, over the trailing four quarters.
PVH Corp. Price and EPS Surprise
PVH Corp. price-eps-surprise | PVH Corp. Quote
Key Factors to Note
PVH Corp has been gaining from brand strength, particularly Calvin Klein and Tommy Hilfiger, backed by market share growth and strong demand. It has been witnessing an impressive performance in the digital platform as customers shifted to online purchases amid the COVID-19 pandemic. Revenues in the digital commerce business are likely to have been aided by robust growth across all regions and brands in the fiscal second quarter as well. The company’s initiatives to expand its digital business and strengthen its network with third-party digital partners are expected to have contributed to digital sales growth in the fiscal second quarter.
It has been witnessing favorable margin trends in the past few quarters, which are expected to have continued in the fiscal second quarter. The gross margin is likely to have benefited from reduced promotional selling, positive shift to regional sales mix and lower inventory reserves. This is expected to have resulted in gross margin expansion across all regions and brands. Expense leverage across all regions and brands is expected to get reflected in EBIT margin growth in the to-be-reported quarter.
On the last reported quarter’s earnings call, management anticipated year-over-year revenue growth of 34-36% (up 29-31% at cc) for the fiscal second quarter. Adjusted earnings per share are expected to be $1.15-$1.18 per share, suggesting a rise from 13 cents reported in the prior-year quarter.
However, sluggish store traffic due to a lack of international tourists in North America is expected to have been 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.
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 #3 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:
lululemon athletica inc. (LULU - Free Report) currently has an Earnings ESP of +3.06% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. (AEO - Free Report) presently has an Earnings ESP of +1.44% and a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank #3.