) has recently raised its non-GAAP earnings outlook for the
upcoming third quarter and fiscal 2012 on the back of strong sales
of its iconic brands
. Moreover, the company has been taking initiatives to revamp its
The world's largest shirt and neckwear company is experiencing
strong demand for its
brand, particularly in North America, while its
brand is outperforming everywhere.
For fiscal 2012, the company now anticipates earnings in the
range of $6.32-$6.37 per share instead of $6.25-$6.32 projected
earlier. It also raised its guidance range for the third-quarter to
$2.28-$2.30 per share from the previous guidance range of
The current Zacks Consensus Estimate for the third quarter and
fiscal 2012 are $2.29 and $6.32 per share, respectively.PVH has
topped the Zacks Consensus Estimate by 4.0%-8.3% over the trailing
four quarters. Going by the current sales trends, we believe that
the company will outperform our estimates once again.
In August 2012, PVH reported an outstanding bottom-line
performance in the second quarter of fiscal 2012. Driven by a solid
segment-wise performance along with a lower tax rate, the company's
earnings per share jumped approximately 17% year over year to
$1.25, beating the Zacks Consensus Estimate of $1.19.
However, the company's total revenue remains almost flat at
$1.337 billion compared with $1.334 billion in the previous-year
quarter. The year-over-year revenue growth at the company's Tommy
Hilfiger and Calvin Klein segments were offset by the decline at
its Heritage Brands segment and unfavorable foreign currency
exchange rates. Moreover, quarterly revenue marginally missed the
Zacks Consensus Estimate of $1.342 billion.
PVH Corp., which competes with
Ralph Lauren Corporation
), currently has a Zacks #2 Rank, which translates to a short-term
Buy rating. However, we remain slightly cautious on the stock and
uphold our long-term 'Neutral' recommendation, waiting to see
further catalysts before becoming more positive on the stock.
PVH Corp., formerly known as Phillips-Van Heusen Corporation, is
headquartered in New York. PVH Corp. designs and markets branded
dress shirts, neckwear, sportswear, footwear and other related
products. The company markets its products at a wholesale level
through department store chains and directly to consumers through
retail stores. The company's portfolio of brands includes its owned
brands and its licensed brands.
PVH CORP (PVH): Free Stock Analysis Report
RALPH LAUREN CP (RL): Free Stock Analysis
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