Following the release of its Q4 Fiscal 2022 earnings, which exceeded market forecasts, PVH stock (PVH:NYE) increased by approximately 11% in after-hours trading. The American luxury clothing business announced adjusted earnings of $2.38 per share on revenue of $2.49 billion, exceeding expectations of $1.67 per share on revenue of $2.36 billion.
CEO Stefan Larsson of PVH attributed the business’s good performance to its meticulous implementation of the PVH+ Plan, a multi-year, brand-focused, direct-to-consumer, and digitally-led strategy that enabled the company to compete despite difficult macroeconomic conditions.
Both Calvin Klein and Tommy Hilfiger brands had excellent brand desirability, resulting in a 3% revenue increase compared to Q4FY22 numbers. However, full-year Fiscal 2022 revenues decreased 1% annually to $9.02 billion, and adjusted profitability for the year came in at $8.97 per share, a significant decrease from FY21’s $10.15 per share, which can be ascribed to excess inventory management issues.
During Q1FY23, PVH anticipates flat revenues year-over-year and earnings per share of $1.90. Nevertheless, Fiscal 2023 revenues are anticipated to increase by 3% to 4% above Fiscal 2022, with earnings per share of approximately $10.
The consensus rating for PVH stock on Stock Target Advisor is Buy, and the average price target for PVH Corp is $82.65, indicating a possible upside of 29.5% from present levels. PVH stock has gained 3.2% year-to-date.