PVH Corp. (PVH): A Bull Case Theory

We came across a bullish thesis on PVH Corp. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on PVH. PVH Corp.'s share was trading at $62.36 as of January 27th. PVH’s trailing and forward P/E were 9.48 and 4.90 respectively according to Yahoo Finance.

PVH Corp ($PVH), the global apparel company behind Calvin Klein and Tommy Hilfiger, represents a classic value opportunity in a market dominated by enthusiasm for software and AI-driven businesses. The company is undergoing a strategic transformation through its multi-year PVH+ Plan, which aims to streamline operations, improve efficiency, and accelerate growth in higher-margin direct-to-consumer and digital channels.

By divesting its lower-margin Heritage Brands business, PVH has become a more focused pure-play lifestyle brand operator, allowing management to reallocate capital toward brand investment, supply chain optimization, and e-commerce capabilities. Despite a challenging retail backdrop in Europe, both Calvin Klein and Tommy Hilfiger have demonstrated resilience across the Americas and Asia-Pacific, with China in particular representing a meaningful long-term growth lever as consumer sentiment stabilizes and brand equity remains intact.

The market’s current skepticism has left PVH shares trading around the low $60s, creating an attractive setup for selling long-dated September 2026 $50 put options. This positioning reflects confidence that $50 represents a fundamental floor for the business, offering roughly 18% downside protection from current levels and implying a deeply discounted valuation of approximately 7x forward earnings. After collecting a $3.30 premium, the effective entry price of $46.70 provides a substantial margin of safety, further supported by PVH’s dividend and a sizable $5 billion share repurchase authorization.

The extended time horizon gives the PVH+ strategy ample runway to translate into improved profitability and cash flow, while generating an attractive yield simply for waiting. Although macro risks such as a prolonged European slowdown or supply chain disruptions remain, PVH enters this period with a strengthened balance sheet and disciplined inventory management. Overall, the trade offers a favorable risk-reward profile, combining income generation with the potential to own iconic global brands at a compelling valuation.

Previously, we covered a bullish thesis on Crocs, Inc. (CROX) by Taylor Nichols in April 2025, which highlighted the company’s industry-leading margins, strong free cash flow generation, disciplined capital allocation, and valuation disconnect versus footwear peers. CROX’s stock price has depreciated by approximately 5.93% since our coverage due to macro uncertainty. OppCost shares a similar perspective but emphasizes brand-focused restructuring and downside-protected entry via options.

PVH Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held PVH at the end of the third quarter which was 33 in the previous quarter. While we acknowledge the potential of 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.

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Disclosure: None.