PVH beats by $0.05, reports revs in-line; guides Q1 EPS and rev just above consensus; guides FY18 EPS and rev just above consensus; adds $750 mln to buyback
- Reports Q4 (Jan) earnings of $1.23 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.18; revenues fell 0.2% year/year to $2.11 bln vs the $2.09 bln Capital IQ Consensus.
- CK rev -1%; TH rev +3%
- Co issues upside guidance for Q1, sees EPS of $1.58-1.60, excluding non-recurring items, vs. $1.56 Capital IQ Consensus Estimate; sees Q1 revs +2% to ~$1.96 bln vs. $1.92 bln Capital IQ Consensus; +4% ex-FX. Negatively impacting revenue in the first quarter of 2017 as compared to the prior year period is a reduction in revenue resulting from the Mexico deconsolidation and the G-III license, partially offset by an increase in revenue from the Tommy Hilfiger China business, which was acquired in April 2016, as the first quarter of 2017 will include a full quarter of revenue, while the first quarter of 2016 included less than one month of revenue. Revenue for the Calvin Klein business in the first quarter is projected to increase ~3% (increase ~5% on a constant currency basis), which includes the negative impact of the Mexico deconsolidation. Revenue for the Tommy Hilfiger business in the first quarter is projected to increase ~4% (increase ~8% on a constant currency basis), which includes an increase in revenue from the Tommy Hilfiger China business, partially offset by the negative impact of the G-III license. Revenue for the Heritage Brands business in the first quarter is projected to decrease ~3%.
- Co issues upside guidance for FY18, sees EPS of $7.30-7.40, excluding non-recurring items, vs. $7.26 Capital IQ Consensus Estimate; sees FY18 revs +2% to ~$8.37 bln vs. $8.35 bln Capital IQ Consensus Estimate; +4% ex-FX. Negatively impacting revenue in 2017 as compared to 2016 is a decrease due to the Mexico deconsolidation, which resulted in the Company no longer recognizing revenues from a directly operated business in Mexico, and a decrease due to the G-III license, which resulted in the discontinuation of the Company's directly operated womenswear wholesale business in the U.S. and Canada in the fourth quarter of 2016. Revenue for the Calvin Klein business is projected to increase ~5% (increase ~7% on a constant currency basis), which includes the negative impact of the Mexico deconsolidation. Revenue for the Tommy Hilfiger business is projected to increase ~1% (increase ~4% on a constant currency basis), which includes the negative impact of the G-III license. Revenue for the Heritage Brands business is projected to decrease ~1%.
- On March 21, 2017, the Board of Directors authorized a $750 million increase to the program and extended it to June 3, 2020.
- Marriot's (MAR) Amy McPherson was appointed to its Board of Directors