Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Calvin Klein Parent PVH Corp. Stock Jumped Today

By Bradley Seth McNew - Mar 23, 2017 at 5:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The apparel conglomerate posted stronger-than-expected earnings. Here's why the market is giving it a lift.

What happened

PVH Corp. (PVH -2.01%) -- 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.

So what

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."

A man and woman in Tommy Hilfigir clothing stand in front of a red wall.

Image source: Tommy Hilfiger / PVH Corp.

Now what

The retail environment continues to be a challenge for many companies, such as Guess? (GES -4.13%)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. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PVH Corp. Stock Quote
PVH Corp.
$56.33 (-2.01%) $-1.16
Guess?, Inc. Stock Quote
Guess?, Inc.
$16.72 (-4.13%) $0.72

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.