PVH guidance for fiscal 2015
PVH Corp (PVH) has predicted its full-year earnings will meet or exceed $7.00 per share in fiscal 2015, compared to $7.59 per share in fiscal 2014. The forecast decline of ~8% in earnings results from a challenging US retail environment that’s been hurt by unseasonably warm weather and decreased international tourist traffic and spending. The results are also negatively impacted by the significant strengthening of the US dollar, which has affected earnings per share to an extent of ~$1.25.
The company revised its earnings guidance in February from the earlier guidance of $6.90 to $7.00. Emanuel Chirico, chairman and CEO, commented, “Our improved outlook for our earnings per share projection reflects the power of our designer lifestyle brands, Calvin Klein and Tommy Hilfiger, which enabled us to successfully navigate through the difficult macroeconomic environment, particularly the continued headwinds across our businesses resulting from the strengthening U.S. dollar.”
Wall Street’s view
Wall Street’s earnings estimates are in line with the company’s guidance. The average estimates of PVH’s fiscal 2015 earnings stand at $6.99 per share on total sales of $8.0 billion. Analysts are expecting a 3% year-over-year decline in PVH’s sales, similar to what the company has guided. For the last quarter of 2015, earnings per share are expected to increase to $1.46, compared to $1.76 a year ago.
If you want exposure to PVH, you could consider pooled investment vehicles like the Consumer Discretionary SPDR ETF (XLY). Other apparel companies in XLY include Coach (COH), Hanesbrands (HBI), Michael Kors (KORS), and VF Corporation (VFC). Together, these five companies account for 2.4% of the portfolio.
Read the next part of this series to learn about PVH’s stock market performance.