What Happened?
Shares of fashion conglomerate PVH (NYSE: PVH) jumped 18.7% in the morning session after the company reported impressive fourth quarter 2024 results, with sales and earnings exceeding Wall Street's expectations. In North America, sales remained steady, supported by the benefit of earlier wholesale shipments. Meanwhile, European sales declined as planned, reflecting the company's deliberate strategy to prioritize quality over volume.
Looking out to the rest of the year, the company provided full-year EPS guide which came in above consensus estimates. They called for at least 6% earnings growth in 2025, even with revenue expected to stay flat. That tells you that the company remained focused on being more efficient, as it also continued to return value to shareholders via its share repurchase program. This outlook also reflected management's confidence in its turnaround plan, especially with continued momentum in Asia and signs of recovery in Europe. Overall, this was a strong quarter, highlighting the potential for significant improvements.
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What The Market Is Telling Us
PVH’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for PVH and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 23.3% on the news that the company reported fourth-quarter results and provided full-year earnings forecast, which fell well below Wall Street's expectations. PVH blamed the macro, especially in Europe. On the other hand, revenue and EPS exceeded expectations during the quarter. Overall, this was a challenging quarter.
PVH is down 27.4% since the beginning of the year, and at $76.18 per share, it is trading 45.5% below its 52-week high of $139.73 from March 2024. Investors who bought $1,000 worth of PVH’s shares 5 years ago would now be looking at an investment worth $2,335.
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