Factors Influencing PVH Corp (PVH) This Earnings Season
PVH Corporation PVH is slated to release fourth-quarter fiscal 2020 results on Mar 30. In the last reported quarter, the company delivered an earnings surprise of 450%. Moreover, its bottom line surpassed estimates by 123.1%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at a loss of 38 cents per share, indicating a year-over-year decline of 120.2%. The consensus mark for earnings remained stable in the past 30 days. The consensus mark for quarterly revenues is pegged at $2.11 billion, implying an 18.8% decline from the year-ago quarter’s reported number.
Key Factors to Note
PVH Corp has been witnessing impressive trends in the digital arena, despite store closures amid the resurgence of cases in some parts of Europe. Notably, solid online demand for casual wear as well as expanded digital services are likely to have contributed to digital growth. Moreover, PVH Corp has been benefiting from strength in Calvin Klein and Tommy Hilfiger brands. Consequently, we expect positive digital trends to have slightly aided the company’s top line in the to-be-reported quarter.
However, sluggish store traffic due to a lack of international tourists in North America remains a headwind. Also, management in its last earnings call noted that continued COVID-19 woes are likely to have hurt its fourth-quarter revenues and earnings due to a resurgence in cases across Europe and North America. As a result, fourth-quarter revenues are expected to have declined nearly 20% year over year.
PVH Corp. Price and EPS Surprise
PVH Corp. price-eps-surprise | PVH Corp. Quote
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:
Snap-on Corporation SNA currently has an Earnings ESP of +0.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ralph Lauren Corporation RL currently has an Earnings ESP of +31.32% and a Zacks Rank #3.
Columbia Sportswear Company COLM presently has an Earnings ESP of +27.27% and a Zacks Rank #3.
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