An Uncommon Bargain, PVH Could Be a Winner for Investors Even If Some PVH+ Goals Are Missed

No-moat PVH laid out aggressive growth and margin improvement plans centered on its two major brands, Tommy Hilfiger and Calvin Klein, at an April 2022 investor event. Yet, its shares trade at less than one half our fair value estimate of $131 as pessimism appears to have taken hold. While we acknowledge some of PVH’s financial goals may not be met, we envision progress and believe its low valuation provides an attractive margin of safety.