PVH Earnings So Good Even JC Penney Flying

Shares of PVH (PVH) are flying off the shelves after the owner of Calvin Klein and other brands easily topped estimates, with CEO Emanuel Chirico giving some of the credit to a revamped JC Penney (JCP).

REUTERS

PVH reported a profit of $1.51 a share, topping the Street consensus for $1.43. PVH also said it would earn between $2.45 and $2.50 during the third quarter, straddling forecasts for $2.48. Gross margins increased to 53.4% to 52.2%.

Citigroup’s Kate McShane calls PVH’s financial results a “nice fall kick-off.” She explains why:

Though PVH shares up ~8% over the past month, we expect the stock to move up on the beat & maintained guidance, indicating mgmt confidence in the back half of the year, despite continued macro caution. Recall that PVH has a long history of guiding conservatively, & we still see potential upside from ongoing strength in CK, Heritage imprvmts, & Europe.

In an interview with Jim Cramer, CEO Chirico gave some of the credit to improvements at JC Penney–”back on track”–and Kohl’s (KSS), where he said PVH sales were firming.

Shares of PVH have gained 9.3% to $128.03 at 11:23 a.m., while JC Penney has risen 4.1% to $11.05 and Kohl’s has advanced 1.9% to $60.28.