| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 106.00 | 72 |
| Intrinsic value (DCF) | 27.78 | -55 |
| Graham-Dodd Method | 78.10 | 27 |
| Graham Formula | 17.90 | -71 |
PVH Corp. (NYSE: PVH) is a global apparel powerhouse, renowned for its iconic brands such as Tommy Hilfiger and Calvin Klein. Headquartered in New York, the company operates across six key segments, including Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands. PVH designs, markets, and retails a diverse range of men's, women's, and children's apparel and accessories, spanning sportswear, intimate apparel, footwear, and home furnishings. With a strong wholesale and retail presence, PVH distributes its products through department stores, specialty retailers, digital commerce platforms, and company-operated stores in approximately 40 countries. Founded in 1881, PVH has built a legacy of brand strength and innovation, leveraging licensing agreements and strategic partnerships to expand its market reach. As a leader in the consumer cyclical sector, PVH continues to capitalize on global fashion trends while maintaining a robust portfolio of owned and licensed brands.
PVH Corp. presents a compelling investment case with its strong brand equity, diversified revenue streams, and global footprint. The company's flagship brands, Tommy Hilfiger and Calvin Klein, command premium positioning in the apparel market, driving consistent revenue growth. However, PVH faces risks from macroeconomic headwinds, including inflationary pressures and fluctuating consumer demand. The company's high beta of 1.809 suggests above-average volatility relative to the market, which may deter risk-averse investors. On the positive side, PVH has demonstrated solid profitability, with net income of $598.5 million and diluted EPS of $10.56 in the latest fiscal year. Its operating cash flow of $740.9 million provides financial flexibility, though its total debt of $3.39 billion warrants monitoring. The modest dividend yield of $0.15 per share may appeal to income-focused investors, but growth prospects hinge on PVH's ability to innovate and expand in key international markets.
PVH Corp. competes in the highly fragmented global apparel industry, where brand differentiation and scale are critical. The company's competitive advantage lies in its ownership of two of the world's most recognizable fashion brands—Tommy Hilfiger and Calvin Klein—which enjoy strong consumer loyalty and premium pricing power. PVH's diversified distribution strategy, spanning wholesale, retail, and e-commerce, provides resilience against channel-specific disruptions. However, the company faces intense competition from both luxury and fast-fashion players. In the premium segment, rivals such as Ralph Lauren and Capri Holdings (owner of Michael Kors and Versace) challenge PVH's market share with similarly strong brand portfolios. Fast-fashion giants like Inditex (Zara) and H&M exert pressure on pricing and speed-to-market, particularly in casual and seasonal apparel. PVH's Heritage Brands segment, which includes Van Heusen and IZOD, competes with mid-tier brands like Levi Strauss and Gap Inc. While PVH's licensing agreements provide additional revenue streams, they also expose the company to brand dilution risks if not carefully managed. Overall, PVH's scale, brand equity, and global reach position it well, but sustained success will require continuous innovation and adaptive retail strategies.