PVH Corp (PVH): This Apparel Company Is Good, But There May Be Better Options

Coach, Inc. (NYSE:COH) is very well known as the maker of very popular women’s handbags, and their sales have grown tremendously over the years. Coach’s latest strategy is to build up its men’s business, which has been very successful so far, with men’s sales up by 50% in the past year alone. Coach trades at a very attractive valuation of 15.6 times earnings, which is extremely attractive for a company with a 12% earnings growth rate going forward. Coach, Inc. (NYSE:COH) also has a very attractive balance sheet with over $900 million in cash and virtually no debt, and they also pay the best dividend yield of the three, at over 2.3% annually.

Buy, Sell, or Hold?

With shares of PVH trading in the teens as recently as 2010, I think that it would be foolish for those who got in near the lows to not exit at least some of their positions and lock in some gains. That being said, PVH definitely has a bright future ahead of it, and the company should realize higher profit margin once their recent acquisitions become fully integrated.

When looking for prospective long-term investments, one of the things I live to see is very little or no debt, some cash, and a decent dividend that has a high probability of increasing over time. In those areas, Coach and Ralph Lauren look slightly better right now, with Coach appearing to be the best value of all. For those who were fortunate enough to make huge profits in PVH Corp (NYSE:PVH) over the past few years, now may be a good time to sell and put your profits in Coach or another high-growth/low- P/E company.

The article This Apparel Company Is Good, But There May Be Better Options originally appeared on Fool.com and is written by Matthew Frankel.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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