PVH Corp

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 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.

We continue to own PVH, which has been proactive in enhancing shareholder value through share repurchases and other strategic actions. The company is taking tangible steps to navigate the current market environment, which we believe positions it well for future growth. PVH's management is focused on creating value, and we see potential for the stock to appreciate as the market recognizes its efforts and the underlying strength of its brand portfolio.

We initiated a position in global apparel brand PVH, which we know well and have successfully owned before. The company is taking tangible actions such as share repurchases, which we believe will enhance its value. In a market where we see mispricings, PVH stands out as a compelling opportunity for growth and value creation.

PVH was a detractor for the quarter due to broad pressure on consumer discretionary spending and being placed on China's restricted list amid escalating trade tensions. Despite these challenges, PVH reported solid, flattish results in a tough environment and announced a new accelerated share repurchase authorization, which positively impacted the stock. The company trades at a mid-single-digit multiple of free cash flow, which has growth potential, and the management is focused on closing the price to value gap.