PVH (PVH) Proved Its Power to Deliver Strong Long-Term EPS

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third-quarter 2025 investor letter. The letter can be downloaded here. The fund returned -0.33% in the third quarter, compared to the S&P 500’s 8.12 % return and the Russell 1000 Value’s 5.33% return. The firm is not happy with the flat performance of the portfolio, emphasizing its investments in real assets and brands that generate growing free cash flow (FCF) per share. Despite facing market pressures from speculation and government uncertainty, it anticipates that the Fund's ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Longleaf Partners 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 -0.68%, and its shares lost 7.58% of their value over the last 52 weeks. On October 23, 2025, PVH Corp. (NYSE:PVH) stock closed at $86.66 per share, with a market capitalization of $4.17 billion.

Longleaf Partners Fund stated the following regarding PVH Corp. (NYSE:PVH) in its third quarter 2025 investor letter:

"PVH Corp. (NYSE:PVH) - Branded apparel company PVH performed well in the quarter as the company continued to demonstrate that while quarterly earnings could have some volatility, the long-run earnings per share power of this company remains intact at over $10 per share. After hiccups at the Calvin Klein brand earlier this year, the company has gotten it back on track. PVH also remains our largest share repurchaser for the year after buying a teens percentage of shares outstanding at great prices. While this is a company that is sensitive to consumer trends, its brands resonate with a more price conscious buyer, plus the company still has numerous levers to pull to improve margins."

PVH Corp. (NYSE:PVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held PVH Corp. (NYSE:PVH) at the end of the second quarter, compared to 35 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 FPA Queens Road Small Cap Value Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.