MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: US JUN PERSONAL INCOME +0.2%; NOM PCE +0.3%

Monthly Retail Sales Volatility Obscures Still-Positive 3m/3m Trend

Retail Sales Grow Slightly In June, Consistent With Surveys

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

PVH (Baa3, BBB-; Double Pos) 1Q24 Results

CONSUMER CYCLICALS
Credit BulletsBulletHomepagemarkets-real-timeCredit

PVH has reported small beat & kept FY guidance (ending Jan) unch outside small upward revision to EPS and adding explicit 2Q guidance. It is still our cheapest deal of the year in primary. More recently we told investors to stay on side-lines heading into earnings - we take that caution off and add back a cheap view at Z+135/B+165/4.2%. It is our most value pick among retailers. We expect both raters to stay on pos. outlook.

  • 1Q (3m ending April) sales fell -10% (constant currency -9%) to $1.95b better than guidance for -11% (cc-10%) which consensus was also at. Sale of Heritage Brands women's intimates business took 3% off and its drag is included in above/reported figures.
  • DTC was up cc3% with +5% growth in owned & operated stores, while online declined -5% which is says was on planned reduction in Europe. Wholesale decreased -17% (cc), -6% from Heritage sale & rest on the "strategic reduction" in Europe - the latter led to FY guidance cuts earlier this year, is part of broader PVH+ strategy & has been cleared by raters (both on Pos. outlook) & has had positive takes from ER analysts we've seen.
  • Gross margin up +350bps yoy at 61.4% (c60.5%) the above shift away from wholesale & favourable channel mix driving that. EBIT was $205m at a 10.5% margin & is a beat on consensus $181m.
  • Buybacks totalled $200m during the 1Q and its now explicitly added $400m total in FY24 expected (down from $550m last yr). We don't see any drastic changes in BS (unch to lower on gross debt yoy) - which would leave it in upgrade territory.
  • FY guidance is reaffirmed; -6-7% fall in headline & constant currency revenue & includes a -2% reduction from Heritage brand sale & -1% from calendar effect (i.e. net of both -3-4% fall). EBIT margin still expected flat yoy at 10.1%. Small upward revision to adj & GAAP EPS from $10.75-11 to $11-11.25 (adj) & 11.15-$11.4 (GAAP). Explicit 2Q guidance given for a -6-7% fall in headline revenue (cc-5-6%) including a -3% headwind from Heritage sale.

Asides

Keep reading...Show less
444 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

PVH has reported small beat & kept FY guidance (ending Jan) unch outside small upward revision to EPS and adding explicit 2Q guidance. It is still our cheapest deal of the year in primary. More recently we told investors to stay on side-lines heading into earnings - we take that caution off and add back a cheap view at Z+135/B+165/4.2%. It is our most value pick among retailers. We expect both raters to stay on pos. outlook.

  • 1Q (3m ending April) sales fell -10% (constant currency -9%) to $1.95b better than guidance for -11% (cc-10%) which consensus was also at. Sale of Heritage Brands women's intimates business took 3% off and its drag is included in above/reported figures.
  • DTC was up cc3% with +5% growth in owned & operated stores, while online declined -5% which is says was on planned reduction in Europe. Wholesale decreased -17% (cc), -6% from Heritage sale & rest on the "strategic reduction" in Europe - the latter led to FY guidance cuts earlier this year, is part of broader PVH+ strategy & has been cleared by raters (both on Pos. outlook) & has had positive takes from ER analysts we've seen.
  • Gross margin up +350bps yoy at 61.4% (c60.5%) the above shift away from wholesale & favourable channel mix driving that. EBIT was $205m at a 10.5% margin & is a beat on consensus $181m.
  • Buybacks totalled $200m during the 1Q and its now explicitly added $400m total in FY24 expected (down from $550m last yr). We don't see any drastic changes in BS (unch to lower on gross debt yoy) - which would leave it in upgrade territory.
  • FY guidance is reaffirmed; -6-7% fall in headline & constant currency revenue & includes a -2% reduction from Heritage brand sale & -1% from calendar effect (i.e. net of both -3-4% fall). EBIT margin still expected flat yoy at 10.1%. Small upward revision to adj & GAAP EPS from $10.75-11 to $11-11.25 (adj) & 11.15-$11.4 (GAAP). Explicit 2Q guidance given for a -6-7% fall in headline revenue (cc-5-6%) including a -3% headwind from Heritage sale.

Asides

Keep reading...Show less