PVH Corp’s third-quarter revenue slides 17.3% due to COVID-19 disruptions

PVH Corp’s third-quarter revenue slides 17.3% due to COVID-19 disruptions
Written by:
Wajeeh Khan
December 2, 2020
  • PVH Corp’s third-quarter revenue slides 17.3% due to COVID-19 disruptions.
  • The clothing company earned 99 pence per share in Q3 on an adjusted basis.
  • PVH forecasts a close to 20% annualised decline in its revenue in fiscal Q4.

PVH Corp (NYSE: PVH) reported its financial results on Wednesday that topped analysts’ estimates for earnings in the fiscal third quarter. Despite the hawkish performance, the company gave downbeat guidance for the fiscal fourth quarter.

PVH Corp slipped less than 0.5% in extended trading on Wednesday. At £62.08 per share, the company shares are still 20% down year to date in the stock market after recovering from an even lower £21.73 per share. Learn more about how do people make money on the stock market.

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PVH Corp reports £52.21 million of net income in Q3

PVH Corp said that its net income in the third quarter came in at £52.21 million that translates to 73.30 pence per share. In the same quarter last year, it had posted a higher £156.48 million of net income or £2.11 per share. In a statement late last month, PVH Corp announced new appointments to its board of directors.

On an adjusted basis, the owner of prominent brands like Tommy Hilfiger and Calvin Klein earned £70.46 million in the recent quarter or 99 pence per share. In comparison, experts had forecast a much lower 17.95 pence of earnings per share for PVH Corp in Q3.

In terms of revenue, the clothing company registered £1.50 billion in the third quarter – 17.3% lower than the year-ago figure of £1.82 billion. In separate news from the U.S., Splunk said on Wednesday that its loss widened as the COVID-19 crisis weighed on its sales in the fiscal third quarter.

PVH Corp’s guidance for the fiscal fourth quarter

For the fiscal fourth quarter, PVH Corp now forecasts a close to 20% annualised decline in its revenue. The U.S. company also said that its Q4 revenue to date was currently 20% lower than last year.

CEO Emanuel Chirico commented on the financial report on Wednesday and said:

“We have outperformed our Holiday season expectations in the fourth quarter to date, including Singles’ Day in Asia and our Black Friday promotions in North America and Europe, with particular strength across the digital channels.”

According to PVH, the ongoing Coronavirus pandemic that has so far infected more than 14 million people in the United States and caused over a quarter million deaths will keep its financial performance under pressure in the upcoming months.

At the time of writing, PVH Corp has a market capitalisation of £4.43 billion.