Fashion brand PVH Corp. (NYSE: PVH) The stock benchmark index is trying to stage a comeback after the sell-off. Manufacturers of iconic brands, including Calvin Klein and Tommy Hilfiger, have seen double-digit top-line growth and increased direction despite supply chain headwinds. PVH also experienced significant logistical disruptions, including U.S. port delays that affected (-4%) causing the company to change its fourth-quarter wholesale shipment time. Despite these problems, the company sees digital e-commerce penetration as strong pricing power for 25% of total sales and double-digit top-line growth. The company is focusing on expanding its penetration to the next generation of consumers, including Zen-Z and the millennial population that favors digital channels. Wise investors looking for exposure in turnaround play by exploiting proven iconic fashion brands can look for opportunistic pullback levels in PVH Corporation shares.
Q3 Financial 2021 Earnings Release
On February 2, 2021, PVH released its third-quarter fiscal 2021 results for the quarter ended October 2021. The company reported earnings per share (EPS) of $ 2.67, excluding compliance analyst estimates for বৃ 0.61, excluding non-recurring items. Revenue grew 10% year-on-year (YoY) to 2.33 billion. The company shifted wholesale shipments from the third quarter to the fourth quarter due to US port delays, which had an effect (-4%). International sales significantly exceeded the third quarter 2019 level. Digital channel revenue grew 15%. Digital penetration as a percentage of total revenue was 21%. Gross margin has improved by 300 bps compared to pre-epidemic 2019 levels. The company has raised its full-year 2021 EPS outlook to 9.25, up from the $ 8.50 previous guideline. PVH CEO Stephen Larson commented, “Looking ahead, as we continue to monitor growing COVID uncertainty based on current momentum with our strong third-quarter performance and a strong start to holiday sales, we are looking at further earnings guidance for the full year. . . We are now forecasting operating margins above the pre-epidemic level of 2019. We are focused on sustainable, long-term profitable growth and shareholder value management. ”
Conference Call Takeaways
CEO Larson cites the powerful pricing capabilities of its Calvin Klein and Tommy Hilfiger brand across the 2021 with its increased pricing power and “supercharged” ecommerce driving its digital penetration to 25% of total business. It has achieved high gross margin by 300 bps. Its international business was strong across all brands. Europe has seen double-digit sales growth in its Calvin and Tommy brand compared to pre-epidemic levels in 2019, leading to stronger full-price sales and higher operating margins. Digital sales accounted for 23% of total revenue. Its brick and mortar business also saw significant outperformance. North America faced pressure in October due to a lack of tourism and bad port delays. PVH continues to accelerate recovery through product power, pricing capabilities, and increased focus on Gen-Z and millennial young consumers through supercharged e-commerce. North America has been a priority for many years to unlock opportunities. He noted, “In the end, as I shared earlier, when the epidemic hit, we first set out to successfully navigate through the initial face of the Covid crisis, which we did, and to do it in a way that sets us up. Run an accelerated recovery.” What we’re doing right now is that we’re in a position to win. ” He noted that Investor’s Day in April would be the first in more than a decade.
PVH opportunistic pullback price level
Using rifle charts in weekly and daily time frames provides an accurate view of the landscape for PVH stocks. The weekly rifle chart reached close to 101.21 Fibonacci (Five) layer. Shares continue to break above a weekly reverse pup from below $ 66.28 Fib before staging a return. The 5-period moving average (MA) fell to 83.87 on the weekly rifle chart downtrend, followed by the 15-period MA $ 94.51, the 200-period MA $ 97.05, and the 50-period MA $ 105.17. The weekly stochastic 20-band is trying to bounce off. Weekly lower Bollinger Bands (BBs) sit at $ 68.14. The Daily Rifle chart is trying to breakout, but is flat at 5-period MA $ 81.63 to 15-period MA $ 77.37. The daily stockist is still growing on a mini puppy. The daily 50-period MA sits at $ 91.04 and the 200-period MA sits at $ 103.67. Daily Lower Market Structure (MSL) Purchases triggered by a breakout above $ 77.50. Discreet investors can look for the opportunistic pullback levels at $ 78.76 fib, $ 76.58 fib, 72.43, $ 68.94 fib, $ 66.28 fib, $ 63.70 fib, $ 59.05 fib, and $ 56.28 fib. Upside trajectories range from $ 96.95 fib level to $ 115.08 fib level.