PVH Corp., formerly “the Phillips-Van Heusen Corporation”, the American clothing and apparel behemoth, which owns world-renowned brands such as Tommy Hilfiger and Calvin Klein, reported strong 2022 fourth-quarter financial results and forecasts “double-digit EPS growth in 2023” with the opportunity “to drive meaningful top and bottom-line growth.”
Shares in PVH Corp. surged 20% on Tuesday, the 28th of March, approximately two weeks ago, after the apparel giant disclosed better-than-expected quarterly results “despite the challenging macro situation.” Fourth-quarter revenue increased by 2.4% to $2.489 billion relative to the prior year’s quarterly period, where general market consensus estimates pointed toward a decrease of 4%. Similarly, on a GAAP basis, fourth-quarter earnings per share (EPS) came in at $2.18, significantly higher than general market consensus estimates of approximately $0.45 per share. Moreover, on a non-GAAP basis, fourth-quarter earnings per share (EPS) came in at $2.38, an impressive 44% higher than the guided figure of approximately $1.65. Zac Coughlin, Chief Financial Officer of PVH Corp., expressed his stance that the group is in an excellent position to attain double-digit EPS growth in 2023 and believes that PVH has the potential to “drive meaningful top and bottom-line growth.”
On the 27th of March 2023, the Chief Executive Officer of PVH Corp., Stefan Larsson, expressed his belief that the apparel giant is “entering 2023 with significant momentum” with a “long-term vision to build TOMMY HILFIGER and Calvin Klein into the most desirable lifestyle brands in the world.” Mr Larsson also aims to bring PVH Corp. to “be one of the highest performing brand groups in [the] sector.”
Technical Analysis:
The price action on the American apparel giant has been consolidating sideways for the last four months, with the primary resistance and support levels firmly at $94.00 (green line) and $68.00 (red line).
For the bull case, a short-term trading opportunity could exist if the price action pushes above $91.00, which could be the first resistance point in the price for the bulls. If the price breaches the resistance, the share price could reach $94.00, a share level towards the primary resistance of $103.00 (green line).
The bears could see the price action retrace toward the support level at $84.00, which could be the first support level for the bears. Should the support level at $84.00 fail to hold, the price action can decline to the support level at $70.00 (black dotted line), a share level towards the primary support level of $68.00.
Summary:
Whether the recent positive sentiment around PVH Corp. holds against the backdrop of expectations for a solid 2023, the possibility could exist for a long above $91.00 to the next significant resistance at $94.00. If the price action retraces, the support level at $84.00 could be watched closely as a potential entry point for the bulls. However, should that support level fail to hold, the possibility could exist for a short position below $84.00 to the next significant support level at $70.00 or $68.00.
Sources: Bloomberg, FX Street, PVH Corp., Trading View
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