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Shares of Calvin Klein owner PVH trade on pace for best day since 2014

Emanuel "Manny" Chirico, CEO PVH
Scott Mlyn | CNBC
Emanuel "Manny" Chirico, CEO PVH

Shares of Calvin Klein owner PVH climbed surged more than 8 percent Thursday, a day after the company reported quarterly earnings that beat expectations.

By market close the stock had nearly matched its best gains back in September 2014, when shares gained 9.6 percent.

The clothing company reported fourth-quarter adjusted earnings of $1.23 per share, topping a Thomson Reuters consensus estimate of $1.19. Sales also came in above expectations at $2.11 billion for the quarter, versus a Reuters estimate of $2.09 billion.

PVH, which also owns Tommy Hilfiger, said it expects first-quarter adjusted earnings to fall within $1.58 to $1.60 per share, above a Reuters forecast of $1.57 a share.

"We believe that our brands, led by Calvin Klein and Tommy Hilfiger, continue to resonate with consumers and position us well in the marketplace against our competition," Chief Executive Emanuel Chirico said in a statement.

PVH expects revenue from its Calvin Klein business to rise about 3 percent in the first quarter of 2017, after posting a 1 percent decline year over year in the fourth quarter. For total sales this year, PVH projects a 2 percent increase.

"We continue to take a prudent approach to planning our 2017 business in light of the macroeconomic and geopolitical volatility around the world, the uncertain global retail landscape, as well as the strengthening U.S. dollar," Chirico said, referring to the company's updated 2017 guidance, which prompted several firms to issue notes on PVH to investors Thursday.

"We remain impressed by the company's results, particularly in International and North America wholesale, in the face of a choppy retail environment," Guggenheim wrote in a note to clients Thursday. The firm maintains a buy rating on the stock with a $125 price target.

With Thursday's gains, shares of PVH are now up 9 percent for the year, though they have fallen roughly 9 percent over the last six months.

PVH year-to-date performance

Source: FactSet

Correction: This article has been updated to reflect PVH doesn't own BCBG Max Azria, as was previously stated. The two entered a licensing agreement in 2003.