Reasons for the Outperformance of PVH Corp. (PVH) in 2023
Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2023. A copy of the same can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) advanced 12.43% and 12.50%, respectively, in the fourth quarter of 2023, outperforming the Russell 1000 Value Index’s (Russell Value) 9.50% return. Sound Shore's portfolio had a great year in 2023, returning 17.42% for SSHFX and 17.67% for SSHVX, both significantly ahead of the 11.46% return for the Russell Value. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Sound Shore Management featured stocks such as PVH Corp. (NYSE:PVH) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, PVH Corp. (NYSE:PVH) is an apparel company. On February 13, 2024, PVH Corp. (NYSE:PVH) stock closed at $127.30 per share. One-month return of PVH Corp. (NYSE:PVH) was 9.09%, and its shares gained 52.13% of their value over the last 52 weeks. PVH Corp. (NYSE:PVH) has a market capitalization of $7.592 billion.
Sound Shore Management made the following regarding PVH Corp. (NYSE:PVH) in its fourth quarter 2023 investor letter:
"Apparel maker PVH Corp. (NYSE:PVH) led all contributors for the quarter and was one of our best performers for 2023. As we discussed in our letter at the end of last year, the stock sold off in the second quarter of 2022 as it fell on consumer spending concerns and despite the company’s core business continuing to grow. We believed that with leading brands such as Tommy Hilfiger and Calvin Klein, along with a strong balance sheet to withstand a sales slowdown, PVH was executing well in a challenging environment. We added to our position at the time and our conviction has been rewarded. This year, margins have improved as the company focused on improving the quality and cost structure of their best selling products. This has allowed earnings to grow against a challenging retail backdrop. PVH’s management team has targeted even higher margin improvement which would lead to earnings power ('EPS') of more than $18 per share, compared to the current EPS of $11."
A busy store filled with customers shopping for the latest menswear apparel products.
PVH Corp. (NYSE:PVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held PVH Corp. (NYSE:PVH) at the end of third quarter which was 31 in the previous quarter.
We discussed PVH Corp. (NYSE:PVH) in another article and shared the list of largest clothing companies by market cap in the world.. In addition, please check out our hedge fund investor letters Q4 2023 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.
