PVH Plays Financial Engineering Games

Phillips-Van Heusen (PVH) announced results and essentially earned less money than previous comparable quarters. The economy is tough and all that. So PVH spends approximately $200 million in cash buying back its own stock as the market is diving. To put things in perspective for every dollar they earned this last quarter they spent four buying back their own stock.

Tough economic times present opportunities that those with cash may capitalize on. PVH seems to be out of idea’s and is staying with yesterdays broken strategy. They are short term engineering the eps to make it look good and ignoring enterprise values or concepts.