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Post Earnings Coverage as PVH Outperformed Top- and Bottom-Line Expectations

Upcoming AWS Coverage on lululemon athletica Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 4, 2017 / Active Wall St. announces its post-earnings coverage on PVH Corp. (NYSE: PVH). The Company released its fourth quarter and fiscal 2016 financial results on March 22, 2017. The owner of the Calvin Klein and Tommy Hilfiger brands reported a y-o-y decline in sales and revenue, but results were still was better than market estimates. Register with us now for your free membership at:

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One of PVH Corp's competitors within the Textile - Apparel Clothing space, lululemon athletica inc. (NASDAQ: LULU), announced on March 15, 2017, that its financial results for Q4 and full year fiscal 2016 will be released Wednesday, March 29, 2017. The company will host a conference call at 4:30 p.m. ET to discuss the financial results. AWS will be initiating a research report on lululemon athletica in the coming days.

Today, AWS is promoting its earnings coverage on PVH; touching on LULU. Get our free coverage by signing up to

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Earnings Reviewed

For the three months ended January 29, 2017, PVH' s revenue of $2.11 billion was almost flat, or up 1% on a constant currency basis, compared to the prior year's same period. The Company's sales numbers surpassed analysts' consensus of $2.09 billion. PVH's revenue for FY16 increased 2% to $8.20 billion, or 4% on a constant currency basis.

For Q4 FY16, PVH's earnings before interest and taxes (EBIT) on a GAAP basis decreased to $154 million compared to $176 million in Q4 FY15. The Company's EBIT on a non-GAAP basis for the reported quarter was $147 million compared to $183 million in the prior year's comparable period.

On GAAP basis, PVH reported earnings per share (EPS) of $1.26 for Q4 FY16 compared to $1.63 in Q4 FY15. EPS was $1.23 on a non-GAAP basis for Q4 FY16 compared to $1.52 in the prior year's same period. The Company's earnings surpassed Wall Street's estimates of $1.21 per share. For FY16, PVH's EPS was $6.79 on a GAAP basis compared to $6.89 in the prior's corresponding year. EPS was $6.80 on a non-GAAP basis for FY16 compared to $7.05 in the prior year.

Segment Results

During Q4 FY16, revenue in the Calvin Klein business decreased 1% to $795 million (flat on a constant currency basis) compared to the prior year's same period, which includes a reduction of approximately $25 million resulting from the November 2016 deconsolidation of the Company's Mexican subsidiary. Calvin Klein International revenue increased 11% to $385 million, or 14% on a constant currency basis, compared to the prior year's corresponding period, including a 6% increase in comparable store sales, due to continued strong performance in Europe and China. Calvin Klein North America revenue decreased 11% to $409 million in Q4 FY16 compared to the year ago comparable period, in part, by the Mexico deconsolidation. EBIT on a GAAP basis for Q4 FY16 totaled $69 million compared to $101 million in the prior year's same period. EBIT on a non-GAAP basis decreased to $75 million, inclusive of an $11 million negative impact due to foreign currency exchange rates, for the reported quarter compared to $109 million in the prior year's same period.

During Q4 FY16, revenue in the Tommy Hilfiger business grew 3% to $932 million, or 5% on a constant currency basis, compared to the prior year's comparable period. Tommy Hilfiger International revenue increased 10% to $513 million, or 14% on a constant currency basis, compared to Q4 FY15. This increase was driven by outstanding performance in Europe, including a 7% increase in comparable store sales, and the April 2016 acquisition of the 55% interest in the Company's former joint venture for Tommy Hilfiger in China (“TH China”) that it did not already own. Tommy Hilfiger North America revenue decreased 4% to $419 million compared to the prior year's same period. The North America revenue decrease was principally due to a 7% comparable store sales decline and the discontinuation of the Company's directly operated womenswear wholesale business in the US and Canada during the reported quarter in connection with the licensing of this business to G-III Apparel Group, Ltd.

The segment's EBIT on a GAAP basis decreased to $66 million for the reported quarter compared to $83 million in the prior year's same period. EBIT on a non-GAAP basis for Q4 FY16 increased to $92 million compared to $86 million on a non-GAAP basis in the prior year's corresponding period.

For Q4 FY16, revenue in the Heritage Brands business decreased 5% to $381 million compared to the prior year's same period, principally resulting from the discontinuation of several licensed product lines in the dress furnishings business, which was a rationalization initiative implemented in 2015 that continued to impact the business in 2016. Comparable store sales were flat compared to the prior year. EBIT for the quarter decreased to $13 million on both a GAAP and non-GAAP basis compared to $19 million on a non-GAAP basis in the prior year's comparable period

Inventory

During Q4 FY16, PVH's inventory levels were flat compared to Q4 FY15. Included in inventory was an increase related to the TH China acquisition, which was offset by a decrease resulting from the Mexico deconsolidation

Stock Repurchase Program

During FY16, PVH repurchased 3.2 million shares of its common stock for $315 million under the $500 million three-year stock repurchase program authorized by the Board of Directors in 2015. On March 21, 2017, the Board of Directors authorized a $750 million increase to the program and extended it to June 03, 2020.

Outlook

PVH is forecasting FY17 earnings per share on a GAAP basis to be in a range of $6.20 to $6.30. The Company projects 2017 earnings per share on a non-GAAP basis will be in the range of $7.30 to $7.40. Revenue in 2017 is projected to increase approximately 2% (increase approximately 4% on a constant currency basis) compared to 2016.

For Q1 FY17, PVH is forecasting GAAP earnings per share to be in a range of $0.73 to $0.75. On a non-GAAP basis, the Company projects upcoming quarter per share to be in a range of $1.58 to $1.60. Revenue in Q1 FY17 is projected to increase approximately 2%, or increase approximately 4% on a constant currency basis, compared to the prior year's comparable period.

Stock Performance

On Monday, April 03, 2017, the stock closed the trading session at $103.18, marginally down 0.28% from its previous closing price of $103.47. A total volume of 793.72 thousand shares have exchanged hands. PVH Corp.'s stock price advanced 14.53% in the last month, 14.39% in the past three months, and 5.82% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 14.39%. The stock is trading at a PE ratio of 15.25 and has a dividend yield of 0.15%.

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SOURCE: Active Wall Street