Shares of PVH Corp rose 3.9% in after-market trading on Wednesday after the apparel retailer reported better-than-expected 2Q results. The stock is now up 3.2% in Thursday’s pre-market session.
The fiscal second-quarter revenue of PVH (PVH), the owner of Calvin Klein and Tommy Hilfiger brands, declined 33% Y/Y to $1.58 billion but was ahead of analysts’ forecast of $1.25 billion. The top line gained from strong digital sales and the demand for comfort and casual assortments as more people are working from home amid the pandemic. Sales through the company’s directly operated digital businesses grew 87%.
Also, the company’s adjusted EPS of $0.13 handily exceeded analysts’ prediction of a loss per share of $2.43. Adjusted EPS was $2.10 in the second quarter of the prior-year.
Looking ahead, PVH’s Chairman and CEO Emanuel Chirico said, “As we head into the third quarter, trends in China and Europe continue to be very encouraging. However, our North America business continues to experience pressure due to the resurgence of COVID-19 cases and the lack of international tourist traffic coming to the U.S.”
PVH anticipates its revenue to decline 25% in the second half of the year, which marks an improvement compared to the second-quarter decline of 33%. (See PVH stock analysis on TipRanks)
Today, Piper Sandler analyst Erinn Murphy raised her price target for PVH to $69 from $62 and maintained her Buy rating following the better-than-expected second-quarter performance. Even a day before the results, the analyst had raised her price target to $62 from $59 as the retail checks at outlet suggested that promotional levels have pulled back.
Overall, the Street has a Moderate Buy consensus for PVH based on 7 Buys, 8 Holds and 1 Sell. PVH stock has declined 43% so far in 2020 and the average analyst price target of $56.33 indicates a further downside of 5.3% over the next 12-months.
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