PVH Stock Soars After-Hours On Q4 Beat, Strong 2025 View: Retail Awaits More Details From Earnings Call
For fiscal 2025, PVH expects revenue to be flat to slightly higher compared to 2024 on both a reported and constant currency basis.
FollowPVH Corp (PVH) shares surged 16.2% in after-hours trading on Monday, after the company reported better-than-expected fourth-quarter results and provided an upbeat forecast, even as retail investors took a bearish view.
"In a challenging macro, we delivered another year of strong profitability in North America, drove sequential improvements in our wholesale order books in Europe while improving our quality of sales, and we achieved our third consecutive year of growth in Asia Pacific, on a constant currency basis," CEO Stefan Larsson said in a statement.
The company, which owns brands such as Tommy Hilfiger and Calvin Klein, said revenue fell 4.8% to $2.37 billion. Analysts had estimated $2.33 billion, from LSEG/Reuters.
Adjusted earnings of $3.27 per share were higher than the $3.21 per share estimate.
Fourth-quarter revenue was impacted by a 3% decline from the extra week in 2023 and a 1% drop from the sale of its Heritage Brands women’s intimates business, the company said.
For fiscal 2025, PVH said it expects revenue to be flat to slightly higher compared to 2024 on both a reported and constant currency basis.
It projected adjusted earnings of $12.40 to $12.75 per share, higher than the estimate of $11.68.
PVH also announced a $500 million share repurchase plan.
The earnings report, however, did not include commentary on the potential impact of the U.S. trade tariffs, which have weighed the outlook for all kinds of retailers, and the risks to the company's business in China.
The Asian country recently added PVH to its “Unreliable Entity” list due to certain alleged mispractices, and the characterization could attract penalties and restrictions.
Details are expected during PVH's analyst call on Tuesday at 9 a.m. ET.
On Stocktwits, retail sentiment for PVH notched lower in the 'extremely bearish' territory, with 'extremely high' message volume.
A user said that PVH is not a safe bet owing to its high dependence on Chinese factories and a broadly weak market.
Another user said the buyback could send the stock to $120 to $140 in three to six months.
As of Monday's close, shares of the company are down 39% year to date.
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