PVH Corp. has entered into a multi-year collaboration with OpenAI to embed generative AI capabilities across its global value chain, advancing the PVH+ strategic plan. The agreement covers custom models and enterprise APIs, including ChatGPT Enterprise, to enhance product and design workflows, demand planning, inventory optimization and consumer engagement. The initiative will be piloted in North America and Europe before being scaled to all regions where PVH operates—in excess of 40 countries—leveraging its two flagship brands, Calvin Klein and TOMMY HILFIGER. CEO Stefan Larsson highlighted that the collaboration is expected to accelerate data-driven decision-making and unlock productivity gains, targeting a 15–20% improvement in planning cycle times and a 10% reduction in inventory carrying costs over the next 18 months.

At a current trailing price-to-earnings multiple of approximately 5.7x, PVH shares trade at a discount of over 40% to the industry average, according to consensus estimates. The company’s focus on defensive apparel segments and resilient direct-to-consumer channels has driven three consecutive quarters of positive same-store sales growth, with Calvin Klein DTC sales up 5.2% year-over-year in the most recent fiscal quarter. Free cash flow conversion remains robust at roughly 110% of net income, supporting a dividend yield near 3.5% and ongoing share repurchase authorizations valued at more than $500 million. Analysts view the valuation gap as a favorable entry point for investors seeking inflation-hedged, income-oriented exposure in the apparel sector.