PVH Corp. (NYSE:PVH) -- the parent company of well-known brands like Calvin Klein, Tommy Hilfiger, and Speedo USA -- got a positive market reaction today following the release of its Q4 and full-year earnings. The stock was up as much as 10% during the trading day.
For the full year, the apparel brand conglomerate posted sales of $8.2 billion, up 2% year over year, though earnings per share dropped a little more than 1% to $6.79 (GAAP). Still, both were above analyst expectations. Speaking about the relatively positive performance, CEO Emanuel Chirico said, "We are very pleased with our fourth quarter results, which exceeded both our sales and earnings guidance despite the volatile macroeconomic environment and the highly promotional retail market in the U.S."
The retail environment continues to be a challenge for many companies, such as Guess? (NYSE:GES), whose stock took a big hit last week on weak 2016 earnings. The changing consumer landscape has left many iconic brands on the defensive, including some of PVH Corp.'s brands. Chirico spoke to that in the press release as well, saying that the environment has forced the company to "implement new initiatives to ensure that our business model is positioned for future success."
For the future, Chirico says that the company will be prudent about macroeconomic risks, but that it will continue to seek out growth opportunities, such as the recently announced plan to acquire bra maker True&Co. The company also set guidance, including an expected 2% rise in full-year sales, that seems to have pleased Wall Street. However, it expects an even wider drop in earnings in 2017, down to the range of $6.20 to $6.30.