PVH CORP. /DE/

Calvin Klein/Tommy Hilfiger owner with strong FCF but an earnings collapse and a newly material China sanctions overhang.

Strengths

• Strong free cash flow — FCF $538.4M (76th), FCF margin 6.0%
• High gross margin — 57.5% (56th)
• Adequate liquidity — current ratio 1.52 (35th)

Risks

• China 'Unreliable Entity List' risk — risk factors: China's MOFCOM placed PVH on the UEL, which could bring fines or restrictions and materially affect China revenue
• Earnings collapsed — net income growth -95.8% (16th), net margin 0.3%, interest coverage 2.45
• Heavy international exposure — MD&A: over 70% of $9.0B revenue generated outside the U.S. — FX and geopolitical risk

Notable findings

• Customer concentration~17% of revenue from one customer/distributor — Sales to our five largest customers were 16
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Exec changeRecent 8-K item 5.02 8-K ↗
• Strong balance sheetStrong balance sheet — $702M cash & investments
• Buying back stockNet buyback — share count -5%/yr over 4y
• Insider sellingInsider selling — 3 open-market sale(s) by 1 insider(s) (~$642,500, last 6mo) Form 4 ↗
• Revenue declineRevenue -19.2% YoY
• Notable holderHeld by 6 notable fund(s): FMR LLC, STATE STREET CORP, CITADEL ADVISORS LLC +3 more (as of 2026-03-31)