The 10-second takeaway
For the quarter ended April 29 (Q1), PVH beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins shrank, and net margins increased.
PVH reported revenue of $1.43 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $1.39 billion on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $1.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.30. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.26 per share. GAAP EPS of $1.27 for Q1 were 61% higher than the prior-year quarter's $0.79 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 53.0%, 20 basis points worse than the prior-year quarter. Operating margin was 10.5%, 170 basis points worse than the prior-year quarter. Net margin was 6.5%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $6.00 billion. The average EPS estimate is $6.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 220 rating the stock outperform, and 21 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 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 $102.14.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.