FPA Queens Road: “We Remain Confident in PVH’s Long-Term Prospects”

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, FPA Queens Road mentioned PVH Corp. (NYSE:PVH) and explained its insights for the company. Founded in 1881, PVH Corp. (NYSE:PVH) is a New York-based clothing company with a $4.8 billion market capitalization. PVH Corp. (NYSE:PVH) delivered a -32.05% return since the beginning of the year, while its 12-month returns are down by -34.14%. The stock closed at $72.47 per share on June 02, 2022.

Here is what FPA Queens Road has to say about PVH Corp. (NYSE:PVH) in its Q1 2022 investor letter:

“PVH Corporation (NYSE:PVH), owner of Calvin Klein and Tommy Hilfiger brands, fell during the last 12 months as the company continues to struggle with supply chain issues resulting in delivery delays. During the first quarter, the company lowered its guidance, causing a sharp selloff in the stock. Some analysts worry that a slower-than-expected rebound in international travel may have a negative impact on the company this year (70% of sales are ex-US). Despite these concerns, management is projecting modest revenue growth and near record gross margins for 2022, and we remain confident in the company’s long-term prospects.”

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Our calculations show that PVH Corp. (NYSE:PVH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. PVH Corp. (NYSE:PVH) was in 37 hedge fund portfolios at the end of the first quarter of 2022, compared to 38 funds in the previous quarter. PVH Corp. (NYSE:PVH) delivered a -8.45% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.