Clothing company PVH (NYSE:PVH) delivered better-than-expected fourth-quarter results. Despite the Q4 beat, PVH stock fell over 22% in Monday’s after-hours trading due to weak guidance. The company, which owns Calvin Klein and Tommy Hilfiger brands, expects its top line to decline in both the first quarter of 2024 and the full year.
Q4 Snapshot
PVH delivered revenue of $2.49 billion in Q4, which remained flat year over year but exceeded analysts’ estimate of $2.42 billion. Its Q4 EPS of $3.72 jumped over 56% year over year and surpassed analysts’ consensus estimate of $3.53. PVH’s focus on improving sales quality and cost efficiencies supported the company’s bottom line.
Meanwhile, PVH expects its Q1 revenue to decline by 11% year-over-year. This implies that PVH could report revenue of about $1.92 billion in Q1, much lower than the Street’s forecast of $2.09 billion. As for 2024, the company expects its top line to decline by 6-7%. Macro headwinds in Europe are likely to remain a drag.
Is PVH a Good Buy?
PVH stock has gained over 57% in one year. Wall Street analysts are upbeat about its prospects. The stock has seven Buy and two Hold recommendations for a Strong Buy consensus rating. The analysts’ average price target on PVH stock of $153.33 implies a 9.73% upside potential.
It’s worth noting that most of the price targets and ratings were set before the Q4 earnings report. This raises the possibility that PVH stock might witness a downward adjustment in price targets from analysts due to a weak sales forecast.
