Name of opportunity: 👀
PVH Corp
Got the receipts: 🧾
PVH Corp has released its Q1 figures. The group had previously predicted that it would have experienced an 11% drop in first quarter revenue, the highest in 3 years. However, the decrease in revenue was not as severe as had been thought, dropping 10% compared to the previous year rather than 11%.
While a drop in revenue doesn’t sound like great news, it’s less than expected. The group also announced that its earnings per share or EPS estimate for the full year ahead had improved. Using standardised GAAP reporting, this figure has increased to US$2.59, exceeding the company’s previous prediction of US$2.15.
How hot is this investment opportunity? 🔥🔥🔥
The group’s stock has gone up slightly (0.37% at time of writing) since the announcement, indicating that this news has been received well. Investors and analysts seem to be feeling more confident in PVH’s profitability and performance. The stock is currently rated a ‘Buy’.
Analysts think PVH Corp may continue to modestly rise in value, from US$119.89 to US$132.21 over the next 12 months. They say it could be a good sign that PVH Corp management have repurchased US$200 million worth of shares (and have plans to repurchase another US$200 million by the end of the year). A ‘share buyback’ can mean a higher earning per share for other investors, and as we have seen, the group’s improving EPS is already a reason that some analysts believe PVH could be a good investment.
PVH Corp also announced that Martijn Hagman CEO of PVH Europe and of Tommy Hilfiger Global will be stepping down - CEO departures can sometimes make stock more volatile, and the first impression created by the new CEO when one is hired is likely to have an effect on the group’s stock, too. So for those who are potentially interested in investing in this stock, it will be worth keeping an eye on who the new CEO of PVH Europe - and of the Tommy Hilfiger brand overall - will be.
Dressing up: 👔
PVH Corp owns two globally renowned fashion brands: Calvin Klein and Tommy Hilfiger. Last year, it sold off the underwear brands Olga, Warner’s and True & Co to Basic Resources, in order to streamline and focus its attention on Tommy Hilfiger and Calvin Klein. Based in the United States, PVH Corp products are available internationally - as both branded and white-label products sold by other companies.
Which neme?: 🔍
‘Fashion’
Download Nemo to see if PVH Corp’s stock changes further in response to the QI earnings announcement
