Growth Strategies

We see a sustainable path of long-term growth
as we execute against our corporate and brand-
specific strategic initiatives.

PVH has a long history of financial growth and operational excellence. Our management team has grown the business to $8.2 billion in 2016 revenues, making us one of the largest global apparel companies. Our global expansion has been robust for more than a decade. While our revenues were principally generated in the U.S. in 2000, we currently generate 45% of our revenues outside the U.S. We anticipate that our non-domestic revenue penetration will expand further as our CALVIN KLEIN and Tommy Hilfiger brands continue to grow overseas.

We see opportunity for significant growth as we employ our strategic initiatives across our organization. Our global growth strategies include:

  • Driving consumer engagement – Investing in our product, presentation, marketing and in-store experiences.
  • Expanding across Asia Pacific and Latin America, the largest growth markets for Tommy Hilfiger and CALVIN KLEIN.
  • Assuming more direct control over Calvin Klein and Tommy Hilfiger licensed businesses where we believe that we can leverage our core competencies to increase sales and profitability.
  • Executing our Calvin Klein European strategy to achieve target operating results.
  • Investing strategically in our global operating platforms to support our growth initiatives, while making positive impacts where we work and live.
  • Growing our digital commerce presence by enhancing and expanding our directly operated sites and our online penetration with wholesale partners.
  • Investing in talent, developing our people and expanding their career development opportunities while providing an inclusive environment where every individual is valued.
  • Generating solid free cash flow, which we will use strategically to drive sustainable long-term growth and stockholder returns.
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Calvin Klein

Since our acquisition of Calvin Klein in 2003, global retail sales of CALVIN KLEIN products have grown at a 9% compound annual growth rate, reaching $8.4 billion in 2016. We believe significant growth opportunities exist to drive CALVIN KLEIN global retail sales further over time, which include:

  • Enhancing CALVIN KLEIN’s global brand relevance and premium designer status worldwide through marketing campaigns and consumer engagement initiatives designed to drive growth and further resonate with more youth-minded consumers.
  • Driving product improvement and expansion, particularly within apparel, accessories, women’s intimates and jeans.
  • Pursuing growth channels, including digital commerce and travel retail, while opportunistically opening specialized brick and mortar locations. 
  • Further improving performance in Europe, as we turn around Calvin Klein Jeans and capitalize on the strong consumer appetite for Calvin Klein Underwear.
  • Gaining greater control of the brand, as we continue to evolve from licensor to owner.
  • Evolving our supply chain to drive efficiencies and position CALVIN KLEIN for continued global growth.

Tommy Hilfiger

Since Tommy Hilfiger has been under our ownership, the brand's growth and performance has exceeded our expectations. Global retail sales have grown at a 6% compound annual growth rate since 2010, reaching $6.6 billion in 2016. We believe that we can further grow Tommy Hilfiger through a number of product and regional initiatives which include:

  • Enhancing global brand relevance, with marketing campaigns and consumer engagement initiatives designed to drive growth and reflect Tommy Hilfiger’s accessible luxury positioning and classic American cool aesthetic.
  • Category expansion, particularly within men’s tailored clothing, underwear and womenswear and accessories.
  • Continuing regional expansion, particularly in Asia Pacific and Latin America, as reflected by our acquisition of the remaining 55% of the Tommy Hilfiger joint venture in China that we did not already own (which closed in April 2016).
  • Pursuing growth channels, with a significant focus on digital commerce, while also opportunistically opening brick and mortar locations. 
  • Capitalizing on our loyal U.S. consumer base to drive sales, as international tourist traffic and spending trends continue to be weak in the U.S.
  • Continuing to gain market share in Europe, even against challenging multi-year comparisons.
  • Evolving our supply chain to drive efficiencies and position Tommy Hilfiger for continued global growth.

Heritage Brands

Our Heritage Brands business is an important complement to our global designer brand businesses. We believe that this business can continue to grow, capture market share and generate healthy cash flows as we execute against our key strategic initiatives, which include:

  • Brand management, as we are committed to designing and marketing quality, trend-right products that offer great value to our customers.
  • Leveraging and enhancing each division’s positioning in the market.
  • Maximizing distribution, particularly through wholesale and digital commerce (third party) expansion.
  • Enhancing profitability by capitalizing on supply chain opportunities and rationalizing various product lines or businesses that are underperforming.
  • Introducing products with advanced technologies and new features.
  • Growing internationally, including expansion within Europe, Asia Pacific, Latin America, Australia and New Zealand through licensed partners. 

Other Strategic Opportunities for PVH

While we believe we have an attractive and diverse portfolio of brands with growth potential, we will continue to explore acquisitions of companies or trademarks and licensing opportunities that we believe are additive to our overall business. New license opportunities allow us to fill new product and brand portfolio needs. We take a disciplined approach to acquisitions, seeking brands with broad consumer recognition that we can grow profitably and expand by leveraging our infrastructure and core competencies and, where appropriate, by extending the brand through licensing.

"We believe our businesses are well-positioned to grow across regions and product lines, driven by our iconic global designer lifestyle brands, Calvin Klein and Tommy Hilfiger."

- Mike Shaffer
Chief Operating & Financial Officer