Business Groups

We operate three business groups —
Calvin Klein, Tommy Hilfiger and Heritage
Brands — which we believe are poised for
long-term growth.

Calvin Klein

With global retail sales of approximately $8.4 billion in 2016, CALVIN KLEIN is one of the best known designer names in the world, exemplifying bold, progressive ideals and a seductive, and often minimal, aesthetic. Our products are distributed through our wholesale partners and through over 3,000 retail locations (including company-operated, licensee, franchisee, concession and distributor stores) across the world. 

CALVIN KLEIN 205W39NYC acts as a halo for the CALVIN KLEIN brand and offers inspiration to the other brands, which include CK Calvin Klein (our contemporary line), Calvin Klein (better sportswear), CALVIN KLEIN UNDERWEAR and CALVIN KLEIN JEANS. CALVIN KLEIN products are available through our wholesale partners (third party retailers, distributors and pure play digital commerce retailers), at our own company-operated retail locations across the world, and online through our own digital commerce sites which we operate in approximately 35 countries spanning the U.S., Europe, Brazil and Asia. Additionally, in certain markets, our products are distributed through licensees (including joint ventures), franchisees and distributors.

Across all of the regions where we operate, we have been focused on expanding our digital operations, particularly on the wholesale side. Accordingly, we have allocated additional resources and added new talent to help us grow our digital business and improve the online experience related to our merchandising and product offerings.

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Asia Pacific, including Australia and New Zealand; and
Latin America, including South America, Central America and the Caribbean.)", "y": 46, "color":"#6696ED", "legendIndex": 1 }, { "name": "NORTH AMERICA", "description":"(U.S., Canada and Mexico)", "y": 54, "color":"#214564", "legendIndex": 0 } ] }] }

Business Structure and Overview

Our Calvin Klein business consists of two reportable segments: Calvin Klein North America and Calvin Klein International.

Calvin Klein North America

Our North American operations, which include revenues generated in the U.S. and Canada, accounted for nearly 55% of our Calvin Klein reported revenues in 2016. Product categories that are distributed in North America include men's sportswear and dress furnishings, men's and women's jeanswear, underwear, outerwear, fragrance, accessories, footwear, performance apparel, women's sportswear, dresses, intimates, suits and handbags and items for the home. Products are sold by us and our licensing partners, through wholesale customers (in stores and online), through our own network of retail stores, which are primarily located in premium outlet centers, and through our own digital commerce sites. We formed a joint venture with Grupo Axo in November 2016 that licenses the rights to operate and manage the distribution of CALVIN KLEIN brand products (along with TOMMY HILFIGER, Warner’s, Olga and Speedo), in Mexico.

Wholesale

The wholesale channel is an important component of our business mix and one of the key ways we communicate our brand messaging and positioning to consumers. Accordingly, we partner with our wholesale customers to ensure that shop-in-shops, product presentations, marketing and customer service levels meet our standards given our premium brand positioning. Our wholesale customer base includes department store retailers (such as Macy's, Lord & Taylor, Dillard's and Hudson's Bay), through which our products are available in stores and online; specialty apparel retailers (such as Urban Outfitters and Pacific Sunwear), through which select product lines of ours are available in stores and online; and pure play digital commerce retailers (such as Amazon).

Retail

Retail accounted for approximately 40% of Calvin Klein's North America sales in 2016(1). Our retail operations include approximately 185 stores, primarily located in premium outlet centers, as well as our U.S. digital commerce site, calvinklein.com, and our retail flagship store on Madison Avenue in New York City. Our outlet stores mainly offer men's and women's apparel and accessories made specifically for the channel, which is designed by our team in New York. 

Calvin Klein International

Our international operations accounted for approximately 45% of our 2016 reported Calvin Klein revenues (including revenues generated in the Asia Pacific region, Europe and Latin America). Internationally, our products are sold through the wholesale channel (in stores and online); our own network of retail locations (including concessions); licensee stores and online through our digital commerce websites. Product assortments that are distributed internationally primarily include men's and women's jeanswear, underwear, accessories and performance apparel.

Asia Pacific

Calvin Klein's Asia Pacific operations accounted for approximately 20% of Calvin Klein's reported revenues in 2016. Our regional headquarters is located in Hong Kong, and we have commercial teams based in Shanghai and Seoul and satellite offices in Tokyo, Taiwan and Singapore, to support our business in major markets such as China, South Korea and Southeast Asia. We also own an interest in joint ventures in India and Oceana (which encompasses Australia, New Zealand and other island nations in the South Pacific). In these countries, we sell CALVIN KLEIN jeanswear, underwear, performance apparel, accessories and CALVIN KLEIN apparel (Australia and India only) primarily through the retail channel, which includes concessions, shop-in-shops, retail stores (both full price and outlet) and travel retail locations, which are located in major international airports. Our retail portfolio includes approximately 380 company-operated retail stores and approximately 370 concessions. Additionally, we operate a wholesale business, through which we primarily sell our products to distributors and franchisees (currently approximately 1,300 doors), and in certain markets, including Japan and South Korea, we have a significant department store presence. Digital commerce is a key focus area, with our products sold through Tmall, jd.com, zalora.com and several other accounts, as well as our directly operated CALVIN KLEIN digital commerce sites in China, Hong Kong and Macau.

Europe

Calvin Klein's European business accounted for approximately 20% of Calvin Klein's reported revenues in 2016. In these countries, we sell CALVIN KLEIN jeanswear, underwear and accessories, and a limited selection of men's CK Calvin Klein apparel (primarily dress furnishings). Our store base includes approximately 180 retail stores (full price and outlet locations), approximately 570 concessions and approximately 125 franchisee stores. We also operate digital commerce sites across Europe, which have the capacity to ship to approximately 25 countries.

Our Calvin Klein Europe business has posted robust growth over the last several years and we continue to believe that Europe represents the brand’s largest regional opportunity. CALVIN KLEIN UNDERWEAR and CALVIN KLEIN JEANS are experiencing momentum, which we expect will continue, given CALVIN KLEIN’s strong brand positioning and customer reception to our products. Additionally, we see a strong opportunity to grow the brand’s accessories business and develop the men’s apparel business, which is in early stages of growth in Europe.

Latin America

Calvin Klein's Latin America business, which consists primarily of our directly controlled operations in Brazil, accounted for approximately 5% of Calvin Klein's reported revenues in 2016. We primarily distribute CALVIN KLEIN products through the wholesale channel (in stores and online), a limited number of retail stores and calvinklein.com. Products sold include CALVIN KLEIN jeanswear, sportswear, accessories, underwear and related products. We also see a notable opportunity to expand the CALVIN KLEIN "master" brand apparel and accessories distribution in the region. Additionally, we have been expanding throughout South America through a third-party licensee.

Licensing

Calvin Klein has approximately 60 licensing and similar arrangements worldwide with third parties for use of the CALVIN KLEIN brands for a broad array of products.

Largest Third-Party Licensees

Licensing continues to be a significant component of Calvin Klein's business, as approximately 55% of the brand's global retail sales in 2016 were generated from licensed businesses. Licensing revenues are included in the region in which they are realized. Calvin Klein's two largest third-party licensees in terms of 2016 global retail sales are:

  • G-III Apparel Group, Ltd. (“G-III”), which generated approximately $1.7 billion in global retail sales in 2016 (primarily in North America) selling men's and women's coats, swimwear and luggage; women's suits, dresses, sportswear, active performancewear; handbags and small leather goods under the CALVIN KLEIN brand.
  • Coty, Inc., our fragrance licensee, which generated approximately $1.2 billion in global retail sales in 2016. CALVIN KLEIN continues to be a top designer fragrance brand worldwide.

Calvin Klein Global Store Count

NORTH AMERICA (1) TOTAL STORES: ~185
EUROPE (2) TOTAL STORES: ~875
LATIN AMERICA (3) TOTAL STORES: ~110
ASIA PACIFIC (4) TOTAL STORES: ~2,030
  • (1) Includes the U.S. and Canada.
  • (2) Includes the Middle East and Africa. Includes concession locations and franchisee and distributor stores.
  • (3) Includes Central and South America and the Caribbean. Includes franchisee and distributor stores.
  • (4) Includes concession and franchisee stores.

Tommy Hilfiger

With global retail sales of approximately $6.6 billion in 2016, TOMMY HILFIGER is one of the world’s leading designer lifestyle brands and is internationally recognized for celebrating the essence of classic American cool style, featuring preppy with a twist designs. Tommy Hilfiger offers a wide range of high-quality apparel, accessories and lifestyle products to a diverse consumer following. We design, market and distribute the HILFIGER COLLECTION, TOMMY HILFIGER TAILORED, TOMMY HILFIGER and HILFIGER DENIM brands, and license these brands for an assortment of premium lifestyle products and in various countries and regions. TOMMY HILFIGER products are available through our wholesale customers (in stores and online), our directly operated digital commerce sites, and our retail locations in North America, Europe, Japan and China; they are also distributed in North America, Europe, the Asia Pacific region and Latin America through licensees, joint ventures, franchisees and distributors.

Across all of the regions where we operate, we have been focused on expanding our digital operations, particularly on the wholesale side. Accordingly, we have allocated additional resources and added new talent to help us grow our digital business and improve the online experience related to our merchandising and product offerings.

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Asia Pacific, including Australia and New Zealand; and
Latin America, including South America, Central America and the Caribbean.)", "y": 55, "color":"#6696ED", "legendIndex": 1 }, { "name": "NORTH AMERICA", "description":"(U.S., Canada and Mexico)", "y": 45, "color":"#214564", "legendIndex": 0 } ] }] }

Business Structure and Overview

Our Tommy Hilfiger business consists of two reportable segments: Tommy Hilfiger North America and Tommy Hilfiger International.

Tommy Hilfiger North America

Tommy Hilfiger North America accounted for approximately 45% of Tommy Hilfiger's reported revenues in 2016. This includes revenues generated from the wholesale channel (in stores and online), through our own retail stores, our company-operated digital commerce sites and licensing agreements (including our joint venture in Mexico).

Retail

Retail accounts for approximately 70% of Tommy Hilfiger's North American sales(1). This consists principally of sales generated from approximately 240 stores in the U.S. and Canada. Our store base primarily consists of company-operated stores, which are located in premium outlet centers and carry specially designed merchandise at a lower price point than our other stores, as well as several full-price flagship and anchor stores. Additionally, we generate sales from our digital commerce site, tommy.com, which acts as an effective brand marketing tool and an e-commerce platform.

Wholesale

Our wholesale business represents approximately 30% of Tommy Hilfiger North America's sales(1). Macy's is the exclusive department store retailer for TOMMY HILFIGER men's and women's sportswear in the U.S. and, in Canada, Hudson's Bay is the principal department store retailer. Both of these customers sell our goods in their stores and on their digital commerce sites. We sell other TOMMY HILFIGER products to select specialty apparel and pure play accounts to cater to a broader audience, particularly more youth-minded consumers.

We entered into an agreement with G-III for the design, production and distribution of TOMMY HILFIGER womenswear in the U.S. and Canada, beginning with certain Holiday 2016 assortments. Pursuant to this agreement, G-III assumed control from us of the women’s sportswear business (which continues to be sold in the U.S. exclusively through Macy’s), as well as added performance apparel, swimwear and denim to the previously licensed categories, including suit separates and dresses (all of which can be sold through a variety of wholesale accounts, including Macy’s).

We view Macy's and Hudson's Bay as key partners in further shaping our North American sportswear strategy for TOMMY HILFIGER, and we are continually expanding the brand's presence in top doors at both department stores, seeking to maximize sales of key items and upgrade the in-store experience by creating clear and impactful store presentations. Additionally, we license certain lifestyle product categories including eyewear, watches, dresses, fragrance and home furnishings, which are also sold at Macy's and Hudson's Bay, as well as through other retailers.

Tommy Hilfiger International

Tommy Hilfiger International accounted for approximately 55% of the business's reported revenues in 2016. Products are sold by us through the wholesale and retail channels in Europe, Japan and China and by distributors, licensees and franchisees in Europe, Latin America and the Asia Pacific region, including through joint ventures in India, Brazil, Australia and New Zealand. We also operate digital commerce sites in Europe, Brazil, Japan and China.

Europe

Tommy Hilfiger has well-established operations in Europe that accounted for nearly 50% of Tommy Hilfiger's reported revenues in 2016. The largest markets in Europe are Germany, Spain and the U.K.

Across Europe, TOMMY HILFIGER products are primarily sold through the wholesale channel, which represents approximately 60% of sales(1) – with customers ranging from large department stores to small independent stores. There are also over 630 retail stores (of which approximately 45% are company-operated, while the remainder are franchisee and distributor-operated stores) and approximately 190 concession locations. Our company-operated store base in Europe consists of full price and outlet stores. Tommy Hilfiger's digital commerce operations are well-developed in Europe, as our directly operated European digital commerce sites are our largest and most profitable, and have the potential to ship to over 30 countries. Looking ahead, we continue to see opportunities for growth in Europe, as we gain market share from competitors and expand various underpenetrated product categories, such as women’s apparel and accessories, men’s tailored clothing and underwear.

Asia Pacific

Tommy Hilfiger’s operations in Asia Pacific include its Japan and China businesses, which are owned; the businesses in India, Australia and New Zealand, which are operated through joint ventures; and the business across Southeast Asia, which is licensed to a third party. The Asia Pacific businesses operated through joint ventures and licenses generated retail sales of approximately $355 million in 2016.

In Japan, we operate approximately 140 stores. We recently repositioned this business to align more closely with TOMMY HILFIGER's premium position globally, by enhancing our distribution and product offerings. We have seen positive signs from our investments and we look forward to seeing further improvement in the underlying business in the years ahead.

We see a significant opportunity to grow our Tommy Hilfiger business in the high-growth market of China, where we are leveraging our well-established infrastructure in Asia, the regional expertise of management and strong brand momentum across our Tommy Hilfiger and Calvin Klein businesses in the region. In particular, we see a large opportunity to grow our categories outside of men’s sportswear, including womenswear, kids’ merchandise, tailored apparel and denim. We also believe that we can drive growth through additional retail store openings and investing in brand marketing.

Latin America

Our Latin America operations are showing continued momentum. Revenues in the region are primarily generated in Panama and Brazil. In Brazil, we have a joint venture with a local partner that was established in 2013. Over the next several years, we plan to expand the brand’s presence in the region, as Tommy Hilfiger exhibits strong brand health with consumers. Tommy Hilfiger's retail base in Brazil includes approximately 220 full-price and outlet stores.

Tommy Hilfiger Global Store Count

NORTH AMERICA (1) TOTAL STORES: ~240
EUROPE (2) TOTAL STORES: ~820
LATIN AMERICA (3) TOTAL STORES: ~220
ASIA PACIFIC (4) TOTAL STORES: ~590
  • (1) Includes the U.S. and Canada.
  • (2) Includes the Middle East and Africa. Includes concession locations and franchisee and distributor stores.
  • (3) Includes Central and South America and the Caribbean. All locations are licensee stores.
  • (4) Includes concession, franchisee and licensee stores.

Heritage Brands

With 2016 reported revenues of approximately $1.6 billion, our Heritage Brands business encompasses the design, sourcing and marketing of a varied selection of prominent brand label dress shirts, neckwear, sportswear, swim products, intimate apparel, underwear and related apparel and accessories, as well as the licensing of our Van Heusen, IZOD, ARROW, Speedo and Warner's brands for an assortment of products. The Heritage Brands business also includes private label dress furnishings programs, particularly neckwear programs. We distribute our Heritage Brands products at wholesale, through company-operated stores, which are principally located in Canada and the U.S. primarily in outlet centers, and online through SpeedoUSA.com, as well as digital commerce sites operated by key wholesale partners and pure-play digital commerce retailers.

Business Structure and Overview

Our Heritage Brands business is comprised of several category offerings, which shown and detailed below.

Dress Furnishings

Our Dress Furnishings business principally consists of the design and marketing of men's dress shirts and neckwear. We market both dress shirts and neckwear under brands including Van Heusen, ARROW, IZOD, Eagle, Sean John, Geoffrey Beene, Kenneth Cole Reaction, Kenneth Cole New York, MICHAEL Michael Kors and Michael Kors Collection. We also market dress shirts under the Chaps brand, among others. We offer private label dress shirt and neckwear programs to retailers, primarily national department and mass market stores. Collectively, our product offerings represent a sizeable portion of the domestic dress furnishings market. Recently, we have been focused on adding innovation and performance features to our products, including our successful launch of the Van Heusen Flex Collar shirt in Fall 2015; based on positive performance, we have been leveraging this technology across some of our other brands and product categories.

Heritage Brands Sportswear

Our Heritage Brands Sportswear business also includes the design and marketing of sportswear, including men's sport shirts, sweaters, bottoms and outerwear, principally under the IZOD, Van Heusen and ARROW brands. Our products are primarily sold to department, chain, specialty, mass market, club and off-price store retailers (for sale in stores and online), as well as pure play digital commerce retailers. As a complement to our wholesale business, we operate approximately 165 stores, which are primarily located in outlet centers in the U.S. and Canada. These company-operated stores primarily offer Van Heusen men’s dress shirts, neckwear and underwear, men’s and women’s suit separates, men’s and women’s sportswear, including woven and knit shirts, sweaters, bottoms and outerwear, and men’s and women’s accessories. A limited selection of IZOD Golf, Warner’s and, to a lesser extent, Speedo products are also sold in most of these stores.

Swimwear

We design and market certain men's, women's and children's swimwear, pool and deck footwear and swim related products and accessories such as swim goggles, learn-to-swim aids, water-based fitness products and training accessories under the Speedo trademark. The Speedo brand is exclusively licensed to us for North America and the Caribbean in perpetuity from Speedo International Limited. We primarily distribute Speedo products through mass market stores, sporting goods stores, team dealers, swim clubs, off-price stores, catalog retailers and digital commerce sites, including Speedo's SpeedoUSA.com digital commerce site and pure play digital commerce retailers.

Underwear / Core Intimates

Our Heritage Brands business underwear and core intimates offerings include intimate apparel, shapewear and loungewear under the Warner's and Olga brands, as well as intimate apparel under the True&Co. brand. Our objective is to leverage core competencies and best practices from across the PVH organization to enhance our products and assortments. This includes leveraging our Calvin Klein Underwear business's strong expertise in product, packaging and marketing, capitalizing on Warner's reputation in bras and leveraging True & Co.’s platform to increase innovation, data driven-decisions and speed across our intimate apparel business. Our underwear and intimates offerings are sold across a variety of retail channels, including department, chain, club, off-price and mass market stores (in stores and online) with the exception of True & Co. products, which are exclusively sold at trueandco.com.

  • (1) Retail and Wholesale split excludes licensing revenues.