The 10-second takeaway
For the quarter ended Jan. 29 (Q4), PVH beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins increased, and net margins expanded.
PVH logged revenue of $1.53 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $1.50 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $1.40 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.18. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share on the same basis. GAAP EPS of $1.11 for Q4 were 44% higher than the prior-year quarter's $0.77 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.5%, 230 basis points worse than the prior-year quarter. Operating margin was 7.1%, 340 basis points better than the prior-year quarter. Net margin was 5.3%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $6.06 billion. The average EPS estimate is $6.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 195 members rating the stock outperform and 23 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give PVH a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PVH is outperform, with an average price target of $82.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.