Shares of PVH Corp. (NYSE:PVH) jumped nearly 11% in after-hours trading yesterday after the company posted better-than-expected Q4 Fiscal 2022 results. The American luxury clothing brand company reported adjusted earnings of $2.38 per share on revenues of $2.49 billion. This was much higher than the Street’s expectation of adjusted earnings of $1.67 per share on revenues of $2.36 billion.
Commenting on the results, CEO Stefan Larsson said, “Our disciplined execution of the PVH+ Plan, our multi-year, brand-focused, direct-to-consumer and digitally-led strategy enabled us to compete to win despite the challenging macro situation.”
Q4 Results in Detail
PVH’s Q4 revenues grew 2% year-over-year to $2.49 billion, thanks to the strong brand desirability of both Calvin Klein and Tommy Hilfiger clothing. Revenue from both brands grew 3% compared to Q4FY22 figures. Meanwhile, full-year Fiscal 2022 revenues declined 1% annually to $9.02 billion.
Remarkably, Q4 adjusted earnings fell to $2.38 per share from the prior year’s figure of $2.84 per share, owing to excess inventory management challenges. Also, FY22 adjusted earnings came in at $8.97 per share, much lower than FY21’s figure of $10.15 per share.
Fiscal 2023 Outlook
Going ahead, the company expects Q1FY23 revenues to remain flat year-over-year, while earnings are expected to be $1.90 per share.
Similarly, Fiscal 2023 revenues are projected to grow by 3% to 4% over FY22, with earnings pegged at approximately $10 per share.
What Is the Stock Price Forecast for PVH?
On TipRanks, PVH has a Moderate Buy consensus rating based on six Buys and three Hold ratings. Further, the average PVH Corp price forecast of $95.33 implies 29.5% upside potential from current levels. Year to date, PVH stock is up 3.2%.
