Wall Street Watch Tuesday: PVH Dresses Up as Hilfiger, Klein Sales Grow
A dicey economy doesn't mean that fashion is out of fashion.
PVH (PVH) posted better than expected quarterly results on Monday afternoon.
Even though the apparel designer reported flat revenue growth of $1.3 billion, PVH's adjusted profit of $1.25 a share came in ahead of both the $1.20 a share that Wall Street was projecting and the $1.07 a share that PVH earned a year earlier.
PVH has been around since 1881, but it was the company's 2003 acquisition of Calvin Klein and its 2010 purchase of Tommy Hilfiger that catapulted it to the upper echelon of designer brands. It should also be noted that despite the company's flat top-line growth this quarter, revenue for Calvin Klein and Tommy Hilfiger did climb 5% and 4% respectively during the period.
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The outlook remains rosy. PVH is actually boosting its bottom-line guidance. The designer is now predicting its adjusted profit for the entire fiscal year will come in between $6.25 a share and $6.32 a share. Analysts were forecasting tweaked earnings of $6.22 a share.
So while it would be nice to see PVH's revenue growing, but investors will take the healthy bottom-line beat.
Other Things Worth Watching
• As residents in the Southeast and along the Gulf Coast anxiously track Isaac's movements, in the markets, people are tracking its investing implications. Between airline flight cancellations and the slowdown in Gulf of Mexico oil production and refining, entire sectors could be put on tilt by the spunky storm.
• Chinese online gaming companies grabbed the spotlight on an otherwise quiet earnings day Monday. Shanda Games (GAME) reported mixed financials in the morning and also announced that its CEO would be resigning. Perfect World (PWRD) followed after Monday's close. There are a few companies in China thriving on the booming popularity of multiplayer online games, but Perfect World isn't one of them. Revenue and earnings fell in the company's second quarter.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article.
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