Calvin Klein maker PVH earnings damaged by COVID-19 pandemic

PVH Corp. shares rose more than 7% in the extended session Wednesday, after the company warned investors about the damaging effects of the COVID-19 pandemic on its businesses and beat earnings and revenue estimates. The apparel company reported a fourth-quarter net loss of $68.5 million, or 93 cents a share, compared with net income of $158.7 million, or $2.09 a share, in the year-ago period. Adjusted for items such as a non-cash loss on its Speedo acquisition, among other items, earnings were $1.88 a share versus $1.84 a year ago. The company said earnings per share were impacted negatively by 25 cents because of additional inventory reserves as a result of the onset of the coronavirus pandemic. Revenue rose to $2.6 billion from $2.48 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $1.72 a share on revenue of $2.47 billion. For the first quarter, analysts model adjusted earnings of $1.16 a share and sales of $1.94 billion. PVH said that it was not issuing guidance due to the COVID-19 pandemic and that its first quarter and full-year results will be hurt by the outbreak. PVH said it was halting stock buybacks, suspending its dividend beginning in the second quarter, reducing capital expenditures and eliminating discretionary spending; the apparel maker also said it was drawing down $750 million of its over $1 billion revolving credit facility. PVH stock has fallen 74% in the past year, with the S&P 500 index falling 9.9%.

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