Fashion conglomerate PVH (NYSE: PVH) will be reporting earnings this Wednesday after market close. Here’s what to look for.
PVH beat analysts’ revenue expectations last quarter, reporting revenues of $2.03 billion, up 2.1% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is PVH a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PVH’s revenue to decline 3.4% year on year, a reversal from the 4.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PVH has a history of exceeding Wall Street’s expectations.
Looking at PVH’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 28.8%, beating analysts’ expectations by 5.6%, and Movado reported revenues up 4.9%, topping estimates by 3.4%. Figs traded up 26.9% following the results while Movado was down 1.3%.
Read our full analysis of Figs’s results here and Movado’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary - apparel and accessories stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.3% on average over the last month. PVH is down 16.4% during the same time and is heading into earnings with an average analyst price target of $91.83 (compared to the current share price of $74.23).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
