By Dhirendra Tripathi
Investing.com – Stock of Calvin Klein and Tommy Hilfiger-owner PVH Corp (NYSE:PVH) lost 6.6% Thursday after several brokerages cut their price targets, according to StreetInsider.
Evercore’s $85 was the lowest set by any of the at least six brokerages who trimmed their targets. The brokerage earlier had a target of $120 for the stock. It maintained its underperform rating. Goldman Sachs, which also maintained its buy rating cut its target to $121 from $140 earlier.
The raft of price cuts followed the company’s fourth-quarter numbers that were disclosed Wednesday.
Fourth-quarter revenue increased 16% to $2.43 billion and the company said the pandemic continued to pressure the performance of its stores but not as much. Some stores in Europe and China were temporarily shut while some other operated on reduced hours.
The sales of Heritage Brands business, including IZOD, Van Heusen, Arrow and Geoffrey Beene brands, to Authentic Brands also weighed on the revenue.
Adjusted profit per share was $2.84 compared to a loss in the same period a year ago.
Revenue in 2022 is projected to increase 2% to 3%, impacted by the sales of the Heritage business and the closure of its stores in Russia and Belarus. Wholesale shipments to Ukraine have also reduced, the company said.
Morgan Stanley analyst Kimberly C. Greenberger said the economic forces remain volatile and “All in, if the European situation proves more dynamic than currently contemplated, and/or if consumers are less receptive to ongoing price increases, PVH could observe an unexpected departure in earnings results relative to plan”.
Greenberger now sees the stock at $89, down from the prior $122.
UBS analyst Jay Sole was an exception, reiterating a buy with a price target of $156, lower by $12.