This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

PVH Surges: What Wall Street's Saying

Stocks in this article: PVH

NEW YORK (TheStreet) -- PVH (PVH) shares soared 9.2% to $127.86 on Thursday as investors renewed their confidence in the apparel company's ability to navigate the challenging retail environment.

PVH, the owner of the Tommy Hilfiger and Calvin Klein brands, among others, reported fiscal second-quarter adjusted earnings of $1.51 a share, above the company's previous guidance of $1.40 to $1.45 a share and compared with $1.39 a share in the year-earlier quarter. The New York-based company reported GAAP earnings of $1.52 a share for the quarter ended Aug. 3. 

PVH's revenue rose 4% from last year to $1.98 billion. Revenue excludes the Bass business, which was sold during the fourth quarter of 2013. The revenue gains in the quarter were fueled by a 9% increase in the company's Tommy Hilfiger business. Sales from Calvin Klein inched 1% higher in the quarter, while the Heritage Brands business was flat compared with the prior year.

The company reaffirmed its full-year adjusted earnings guidance of $7.30 to $7.40 a share. Several sell-side analysts upped their price targets on the stock following the earnings report.

Read More: Home Depot's Possible Breach Makes What Happened at Target Look Like Practice

Here's what analysts are saying on Thursday.

Evren Kopelman, Wells Fargo Securities (Market Perform; $137-$141 valuation range)

Improved sales trends in August and the Q2 2014 EPS beat ($1.51 vs. consensus and our estimate of $1.42) are lifting the PE multiple on PVH shares today (9/4) as confidence is now higher around the achievability of H2 estimates. In addition, the company noted that inventory in the channel is clean. The beat in the quarter was from Tommy Hilfiger and better gross margins. PVH did not flow through the Q2 EPS beat to full-year guidance due to the negative impact from a weaker Euro in the H2 2014. We are slightly raising our FY2014/2015 EPS estimates to $7.40/$8.55 from $7.38/$8.50, and our valuation range is now $137-141 (from $127-132) based on 16-16.5x our 2015E EPS. We think that for the next real move in the stock, we need to wait to see sell-through trends on new CK product.

Read More: Retailers Expose Dramatic Weakness in U.K. Economy

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs