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:
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:
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:
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:
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