PVH

PVH screens optically cheap — a $3.33B market cap on $8.95B of revenue (P/S 0.4) and $680M of operating cash flow imply a mid-teens cash-flow yield, and management is leaning into it with $578M of buybacks that pulled the share count down 13% YoY. Owning the Calvin Klein and Tommy Hilfiger marks (together >95% of revenue per the MD&A) is a durable franchise, and the headline P/E of 139.8 is distorted by a $480M goodwill and intangible asset impairment that crushed reported net income from $599M to $25M. Stripping that one-time charge, the underlying earnings power is intact, which is why the buyback at this level is rational.

That said, the operating picture is genuinely weakening. Reported revenue growth of 3.4% includes a $251M (3%) FX tailwind — ex-FX the top line was roughly flat, with EMEA and APAC declining in constant currency and the Americas leaning on the wholesale in-housing of women's product. Gross margin compressed 190 bps to 57.5%, and the MD&A flags an expected ~$195M gross-profit hit from tariffs in 2026 (vs. $69M in 2025), with refunds on previously paid tariffs explicitly NOT assumed. Long-term debt jumped 45% to $2.29B — partly funding the aggressive repurchases — while equity slipped 6.8%, so the balance sheet is moving in the wrong direction even as cash flow holds.