In a market where fashion retailers are struggling to stay relevant, PVH Corp (NYSE: PVH) has emerged as a standout performer. The parent company of Calvin Klein and Tommy Hilfiger reported impressive earnings results for its fourth quarter, beating analyst expectations and sending shares soaring.
PVH’s stock price jumped 19% on Tuesday, making it one of the biggest gainers in the market today. This surge is not just a flash in the pan – the company has been working hard to revamp its strategy and focus on digital transformation, which seems to be paying off.
The fashion retailer reported adjusted earnings per share (EPS) of $3.27 for Q4 2025, beating Visible Alpha forecasts by a wide margin. Revenue declined just 5% year-over-year to $2.37 billion, but this was still ahead of expectations. The company’s CEO Stefan Larsson attributed the success to “disciplined execution” of its PVH+ Plan, which aims to drive growth through quality sales and cost efficiencies.
But what really caught investors’ attention is the company’s outlook for 2025. PVH sees full-year adjusted EPS of $12.40 to $12.75, with revenue expected to be “flat to increase slightly” from last year. This guidance was well above analyst estimates, which had been calling for a decline in earnings and sales.
The stock repurchase program announced by the company is also worth noting. PVH plans to enter into accelerated share repurchase agreements worth $500 million, which will help reduce its outstanding shares and boost EPS growth.
While some investors may be concerned about the 45% drop in the stock price over the past year, this recent surge suggests that PVH’s fundamentals are improving. The company has a strong brand portfolio, with Calvin Klein and Tommy Hilfiger being two of the most recognizable fashion brands globally.
Institutional ownership is also worth mentioning – FMR LLC (Fidelity) owns 12.27% of the outstanding shares, while Vanguard Group Inc holds around 10.54%. This level of institutional support suggests that investors are confident in PVH’s long-term prospects.
As with any investment, it’s essential to consider both the risks and benefits before making a decision. While PVH has shown impressive growth recently, its stock price can be volatile due to various market factors. Additionally, the company operates in a highly competitive industry where fashion trends change rapidly.
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