Shares for PVH Corp. were up at market close on Wednesday after the New York-based company logged earnings and sales that beat analysts’ expectations.
As of 4:30 p.m. ET, the Tommy Hilfiger and Calvin Klein parent saw its stock jump more than 5% to roughly $34.30. During the fourth quarter, it delivered earnings per share of $1.88, roughly 7 cents higher than Wall Street’s forecasts. Revenues improved 5% to $2.6 billion, versus consensus bets of $2.5 billion.
Despite the better-than-expected report, PVH predicted a “significant negative impact” to its business as a result of the coronavirus, which has sickened nearly 922,000 people around the world and killed at least 46,200.
Reduced travel, temporary store closures and government-imposed restrictions have reduced traffic and consumer spending across its brands in “virtually all key markets” during the first quarter, said PVH. The company added that its wholesale customers and licensing partners have been similarly impacted, while it has also experienced disruptions to its supply chain as a result of closed factories or facilities operating with reduced workforces.
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PVH, which opted against providing guidance for the full year, explained that it was “taking a hard look” at discretionary spending, as well as exploring payroll and salary reductions to preserve its financial position. It currently has more than $1 billion in cash and available borrowing.
“I believe that we are in a solid financial position to navigate the COVID-19 outbreak and this period of unprecedented volatility,” Chairman and CEO Emanuel Chirico said in a statement. “With a nearly 140-year history, I believe that our core strengths — our talent, our brands and our strong fundamentals and balance sheet — will continue to support us through this uncertain time and ultimately lead us back to a healthy path of long-term growth once the pandemic subsides.”
Yesterday, the company’s philanthropic arm, The PVH Foundation, announced a $1 million commitment to coronavirus relief, including a $100,000 donation to the UN Foundation and Swiss Philanthropy Foundation’s COVID-19 Solidarity Response Fund to benefit the World Health Organization. The group is also shipping more than 2 million isolation gowns, masks and other protective medical equipment to support health-care workers in New York.
Tommy Hilfiger, Calvin Klein Parent Shuts Down All North American and European Stores for Two Weeks Amid Coronavirus Crisis