Buckingham Capital Betting Big on Apparel Stocks for Q2

Buckingham Loads Up on Shares of PVH

Buckingham Capital’s PVH Corp (NYSE:PVH) holding received a major boost during the first quarter, with the fund having indicated ownership of 278,292 shares of the company, up by 125% quarter-over-quarter. Other hedge funds sought to distance themselves from the stock during the fourth quarter, as the number of funds in our database that reported a long position in the company as of the end of December dropped to 27, down from 37 at the end of September. At the end of March, PVH posted its fourth quarter financial results, which exceeded expectations. The company reported $2.11 billion in revenue alongside adjusted earnings of $1.52 per share, while analysts had estimated EPS of $1.45 on the back of $2.07 billion in revenue. So far this year, PVH Corp (NYSE:PVH) has been on a solid uptrend, having ended Monday’s trading session at $91.40 per share, up by over 25% for the year. Larry Robbins‘ Glenview Capital reported a 45% reduction to its holding of PVH Corp (NYSE:PVH) during the fourth quarter, to 2.44 million shares.

Buckingham’s Still Bullish on Signet Jewelers

According to its latest 13F filing, Buckingham Capital now holds 239,047 shares of Signet Jewelers Ltd. (NYSE:SIG), up by 11% quarter-over-quarter, and with the holding valued at $29.5 million at the end of March. The stock is trading at a trailing P/E ratio of 21.09, nearly twice the size of the forward P/E of 11.35. This is an indicator that market participants expect the company’s earnings to improve significantly withing the next 12 months. Signet Jewelers Ltd. (NYSE:SIG) is due to release its next financial report on May 26 and analysts are looking for $1.94 in earnings per share and revenue of $1.61 billion. At the end of December, roughly 34% of Signet Jewelers Ltd. (NYSE:SIG)’s stock was held by 53 elite hedge funds in our system, up from 47 reported as of the end of September. Robert Joseph Caruso‘s Select Equity Group is also betting big on this stock, which was its top holding at the end of December. According to its 13F filing for the December quarter, Select Equity’s stake amounts to 5.98 million shares.

Mr. Keidan’s New Top Dog

Mr. Keidan and his team decided to increase their investment in G-III Apparel Group, Ltd. (NASDAQ:GIII) during the first quarter, with Buckingham Capital having reported a 9% boost to its stake, to 606,345 shares valued at $29.7 million. The fourth quarter of fiscal year 2016 was a disappointing one for G-III Apparel Group, Ltd. (NASDAQ:GIII), as the company failed to meet Wall Street’s expectations. Revenue came in at $527.43 million, lower than analysts’ estimates of $568.61 million, while earnings stood at $0.17, well below expectations of $0.42 per share. The stock fell off a cliff after the report and so far has failed to recover, having traded in a narrow range for the past six weeks. As reported in its latest 13F filing, Clifford Fox’s Columbus Circle Investors held 1.29 million shares of G-III Apparel Group at the end of the fourth quarter, up by 15% from the end of the third quarter.

Disclosure: None