Are These Retailers Glimpsing Into a Crystal Ball?
Two major apparel retailers have announced adjustments to their per-share earnings guidance for the fiscal third quarter. PVH Corp. (NASDAQ:PVH) boosted outlook while Express Inc. (NASDAQ:EXPR) was forced to cut its estimates on the heels of an abrupt shift in customer traffic.
PVH reported that, thanks to strong performances at its Tommy Hilfiger and Calvin Klein brands, it is raising its fiscal quarter per-share earnings view to $2.28 to $2.30, up from the previous mark for $2.20 to $2.25. PVH also boosted its per-share estimates for the fiscal year to $6.32 to $6.37, from its prior estimate of $6.25 to $6.32.
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Express, on the other hand, cut its fiscal third-quarter guidance. Shares were down 25 percent on the year as of Monday’s close, and the month of September was not a friendly one. “While our sales in August were in line with the expectations we provided when we introduced third-quarter guidance,” said Chief Executive Michael Weiss, “trends became increasingly difficult in September driven by an abrupt change in traffic.”
“This along with increased promotional activity to maintain our inventory discipline,” Weiss continued, “has led to the revision in our third-quarter sales and earnings guidance.” The company now expects per-share earnings of 16 cents to 20 cents on a same-store sales decline in the mid-single-digit range.