Clothing company PVH Corp. (PVH) has reported mixed results for the third quarter of 2021 as earnings surpassed but revenue lagged expectations. Shares of the company declined 1% in Wednesday’s extended trading session.
Adjusted earnings of $2.67 per share rose 102.3% year-over-year and came ahead of the consensus estimate of $2.07 per share. (See PVH stock chart on TipRanks)
Revenue during the quarter increased 10% year-over-year to $2.33 billion. However, it lagged the consensus estimate of $2.4 billion. The upside can be attributed to the growth witnessed in Tommy Hilfiger and Calvin Klein brands in international markets and North American regions.
The CEO of PVH, Stefan Larsson, said, “Looking ahead, while we continue to monitor the evolving COVID uncertainty, based on our strong third quarter performance and current momentum with holiday sales off to a strong start, we are further raising our earnings guidance for the full year… We remain highly focused on driving sustainable, long-term profitable growth and shareholder value.”
Meanwhile, the company expects revenue to rise 27% to 28% year-over-year in 2021. It has raised its adjusted EPS outlook to $9.25 per share from the previous guidance of $8.50 per share.
Revenue in the fourth quarter is expected to grow 11% to 14% year-over-year. Also, PVH anticipates delivering adjusted earnings of $1.94 per share against a loss of $0.38 per share in the same quarter last year.
Wall Street’s Take
The stock has a Moderate Buy consensus rating based on 1 Buys and 2 Holds. The average PVH price target of $126 implies upside potential of about 19.9% from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Travelers, with 10.3% of investors on TipRanks increasing their exposure to PVH stock over the past 30 days.
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