PVH: Pulls a 180 on Acquisition Posture

Last quarter, holding cash was #1 priority. Now deals are working their way back into the fray…
4Q08 (our notes)
Don’t think it’s time to get aggressive on buying back stock in this environment
– we continue to look at acquisitions that would be accretive
- have a history of success putting business on their platform
- that is the likely use of our cash over the next 12-18 months
- not active market right now, be seeing troubled brands
- haven’t found something that meets co. requirements from brand strength point of view and financial metric point of view

3Q08 (CallStreet transcript)
In answer to a question about acquisitions…
“Look Jeff, it is no change. I will -- on that front. Our focus will continue first and foremost beyond acquisitions. I think in an environment like this, you even have to be more prudent about acquisitions and not only do they have to be accretive and deliver value, but they have to be strategic as well. Also, I think in an environment like this, cash is king can. I think we are going to -- next 2009, we are going hear a significant amount of horror stories about our customers potentially, about other industries, about competitors, that are running into liquidity issues, be that tripping covenants, be that maturities debt coming due, so I think in this type of environment, our balance sheet is one of our biggest strength. I think before I use that to go out and buy $150 million in stock, I would have to be comfortable that the credit markets are operating efficiently, that we are back to some level of normalcy in that environment before I go out and buy back stock, even though I know what a good buy our stock is…”



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