Calvin Klein Parent PVH Rises After Earnings Beat Estimates

Shares of PVH were higher after the owner of Calvin Klein and Tommy Hilfiger reported earnings that beat analyst expectations.
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Shares of PVH  (PVH) - Get Report rose Thursday after the owner of Calvin Klein and Tommy Hilfiger posted fiscal-third-quarter earnings that beat analysts' expectations.

Shares of the New York company at last check rose 8.3% to $90.07.

The apparel company posted earnings of $69.8 million, or 98 cents a share, a decline of 67% from $209.2 million, or $2.82 a share, in the year-earlier period.

Revenue for the quarter ended Oct. 31 dropped 18% to $2.12 billion from $2.59 billion.

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 32 cents a share, or an adjusted 24 cents, on revenue of $2 billion.

"Our third-quarter results exceeded our expectations across all markets and channels, with a very strong recovery in Europe and China, considering the ongoing covid-19 pandemic," Chairman and Chief Executive Emanuel Chirico said in a statement.

PVH's revenue through digital channels grew 36%, with sales through its directly operated digital commerce businesses up 70% from the year-earlier period

"It is clear where we are winning with the consumer – in our international businesses, across our digital channels, and with casual assortments – and we increasingly are shifting our business towards these channels and categories," added Chirico.

PVH expects revenue in the fourth quarter to decline 20% from the year-ago period due to renewed coronavirus restrictions. The FactSet survey is calling for $2.05 billion.

Chirico said the company had outperformed the holiday season expectations in the fourth quarter to date, "including Singles’ Day in Asia and our Black Friday promotions in North America and Europe, with particular strength across the digital channels. 

"Although we are dealing with virus resurgences, including temporary store closures in parts of Europe, as well as brick-and-mortar traffic declines in North America, we are pivoting our businesses to capture where and how the consumer is shopping during this critically important holiday period."