Here's FPA Queens Road Small Cap Value Fund's Views on PVH (PVH)

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 8.60% compared to a 4.97% return for the Russell 2000 Value Index. Moreover, the Fund returned 5.87% YTD, compared to -3.16% for the index. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as PVH Corp. (NYSE:PVH). PVH Corp. (NYSE:PVH) is an apparel company. The one-month return of PVH Corp. (NYSE:PVH) was -0.13%, and its shares lost 24.08% of their value over the last 52 weeks. On August 18, 2025, PVH Corp. (NYSE:PVH) stock closed at $76.24 per share with a market capitalization of $3.665 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding PVH Corp. (NYSE:PVH) in its second quarter 2025 investor letter:

"PVH Corp. (NYSE:PVH) is an apparel company that owns the Tommy Hilfiger and Calvin Klein brands globally. Most of PVH’s earnings come from Europe, where the Tommy and Calvin brands are considered “almost luxury” and where PVH has demonstrated high single-digit organic growth with pricing power over the preceding decade. CEO Stefan Larsson has done an excellent job revitalizing the company and improving margins at PVH’s moribund U.S. operations. In the company’s most recent fiscal year (ending January 31, 2025), comparable revenue was down 2% as the company bumped into a weaker global consumer and actively cleaned up its channel inventory in Europe. Investors are skittish about tariffs and, in 2024, PVH was added to China’s “Unreliable Entity” list threatening the roughly 15% of the company’s profitability that comes from China. PVH’s sales and sourcing are globally diversified, and the company uses its prodigious cash flow to buy back shares. We think shares are cheap at roughly 6x trailing earnings."

PVH Corp. (NYSE:PVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held PVH Corp. (NYSE:PVH) at the end of the first quarter, which was 28 in the previous quarter. While we acknowledge the potential of PVH Corp. (NYSE:PVH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered PVH Corp. (NYSE:PVH) and shared the list of stocks expected to beat the market by 20 percentage points this year. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.