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2 US Consumer Cyclical Stocks Post 2nd-Quarter Results

Shares of PVH Corp. (NYSE:PVH) were 0.94% lower at $70.90 in after-hours trading on Wednesday after missing consensus estimates on second-quarter fiscal 2019 earnings by 12 cents.

The U.S. apparel company posted $2.58 per share, reflecting 21.7% growth from the prior-year quarter.

Revenue came in at $2.36 billion, up 1.3% year-over-year and beating expectations by $30 million.

By segment, Tommy Hilfiger's sales increased 7.9% to $1.1 billion, Calvin Klein's sales dropped 5.6% at $873.3 million and Heritage Brands' sales were flat at $380.87 million.

Due to weak traffic trends and international tensions causing business pressure, PVH has lowered its earnings guidance to $7.95 to $8.05 for full fiscal 2019 versus its prior outlook of $9.05 to $9.15. Revenue is predicted to increase 1% to approximately $9.75 billion versus a 2.7% rise to $9.91 billion consensus.

For the third quarter of fiscal 2019, PVH Corp. expects revenue at $2.36 billion versus consensus of $2.61 billion and earnings per share of $2.95 to $3 versus consensus of $3.46.

The balance sheet had approximately $433.5 million in cash on hand and equivalents as of Aug. 4., and total debt amounted to $2.78 billion.

The stock declined 23% so far this year to below the 100- and 50-day simple moving average lines. The share price at close on Wednesday was $71.57 for a market capitalization of roughly $5.4 billion.


Wall Street recommends an overweight rating with an average target price of $117.39.

Shares of Five Below Inc. (NASDAQ:FIVE) rose 1.66% to $120.25 in after-hours trading on Wednesday after the specialty retailer beat analysts on earnings for the second quarter of fiscal 2019 by 1 cent.

Five Below recorded earnings per share of 51 cents, up 13.3% year-over-year, on $417.4 million in revenue, reflecting 20% growth from the prior-year quarter. However, the company fell $3.7 million short of expectations on revenue.

Amid the most relevant data, the retailer also noted a 1.4% rise in same-store sales and 8 basis points decline in operating income margin to 8.6%.

Looking ahead to full fiscal 2019, the Philadelphia-based specialty retailer expects full-year revenue ranging between $1.87 billion and $1.89 billion versus $1.89 billion consensus. The company's estimate is based on opening 150 new stores and increasing comparable sales by about 3% by the end of full fiscal 2019.

Net income is expected to range between $173.4 million and $179.9 million.

For the third quarter of fiscal 2019, the company expects to generate net income of $7.6 million to $9.8 million from revenue of $369 million to $374 million.

The balance sheet of the company had $269.13 million in cash and short-term investments and $272.7 million in total inventories as of Aug. 3. Accounts payable amounted to $108.7 million and total equity was worth $651.9 million.

Following a 15.6% increase so far this year, the share price of $118.29 at close on Wednesday is below the 100-day simple moving average line and very close to the 50-day simple moving average line. The market capitalization is $6.6 billion.


Wall Street issued an overweight recommendation rating for shares of Five Below Inc. with an average target price of $140.63.

Disclosure: I have no positions in any securities mentioned.

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