Calvin Klein Helped PVH Close Fiscal 2015 in Style
Stock market performance
PVH’s (PVH) stock has generated solid returns in 2016 after losing more than 40% in 2015. Its share price has climbed by more than 28% since January as of March 24, 2016. It closed 7.6% higher on March 24 after announcing its fiscal 4Q15 results after the market closed on March 23.
PVH’s stock performance has been among the best in its peer group during the current year as of March 24, 2016. While Ralph Lauren and Hanesbrands (HBI) have fallen by 14.4% and 3.8%, respectively, VF Corporation (VFC) and Coach (COH) have seen rises of 5.3% and 15%, respectively, year-to-date (or YTD).
PVH is also ahead of the S&P 500 Apparel and Accessories Index, which has risen 8% YTD. The company, however, trails Kate Spade (KATE) and Michael Kors (KORS), which have risen 34% and 38%, respectively, YTD.
Dividends
PVH offers very low dividends to its shareholders compared to other apparel and fashion companies. Its dividend payout ratio stood at 2.3% in fiscal 4Q15 compared to Coach’s dividend payout ratio of 92%. VF Corporation’s and Hanesbrands’ payout ratios were 46% and 38%, respectively, during their last-reported quarters.
Though PVH is a consistent dividend payer, there hasn’t been any growth in its dividends for the last 15 years. It offers a fixed dividend of $0.04 per share each quarter.
Stock repurchase program
In an attempt to boost shareholders’ returns and enhance earnings per share, PVH announced a $500 million three-year stock repurchase program in June 2015. The company repurchased approximately 1.3 million shares worth of its common stock for $126 million during 2015 under this program.
ETF investors seeking to add exposure to PVH can consider the First Trust Consumer Discretionary AlphaDEX ETF (FXD), which invests 1.3% of its portfolio in PVH.
Read the next part of this series to know about PVH’s valuations versus those of its peers.
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