Strategic Priorities

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 approximately 50% 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.

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Our Strategy

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

1. Drive

Drive consumer engagement by investing in product, marketing and in-store & online experiences.

2. Expand

Expand CALVIN KLEIN and TOMMY HILFIGER’s worldwide reach and assume more direct control over various licensed businesses.

3. Invest

Invest in our global operating and digital platforms to support our growth initiatives, while making positive impacts where we work and live.

4. Develop

Develop and retain talent through career development opportunities, while providing an inclusive workplace where every individual is valued.

5. Generate

Generate solid free cash flow to drive sustainable long-term growth and stockholder returns.

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:

1. Enhance

Enhance 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.

2. Drive

Drive product improvement and expansion, particularly within apparel, accessories and women’s intimates.

3. Grow

Grow channels including digital commerce, specialty stores and travel retail, while opportunistically opening specialized brick & mortar locations.

4. Gain

Gain greater control of the brand, as we continue to evolve from licensor to owner.

5. Evolve

Evolve our supply chain including through our speed to market initiatives, to drive efficiencies and other benefits.

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:

1. Enhance

Enhance 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.

2. Category Expansion

Category expansion within womenswear and accessories, men’s tailored clothing and underwear.

3. Drive

Drive regional expansion, particularly in Asia Pacific.

4. Digitize

Digitize TOMMY HILFIGER from showrooms to stores and online experiences.

5. Evolve

Evolve our supply chain including through our speed to market initiatives, to drive efficiencies and other benefits.

6. Be Premium

Be premium in everything we do.

Heritage Brands

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

1. Brand Management

Brand management as we are committed to designing and marketing quality, trend-right products that offer great value to our customers.

2. Leverage

Leverage and enhance each brand’s position in the market.

3. Introduce

Introduce products with advanced technologies and new features.

4. Maximize

Maximize distribution particularly through wholesale partners (in stores and online) and pure play digital commerce retailers.

5. Enhance

Enhance profitability by capitalizing on supply chain opportunities and maintaining a critical focus on inventory management.

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.

"Succeeding in the current business environment has required us to embrace change and focus on our strategic priorities to ensure that our business model is positioned for future success."

- Mike Shaffer
Chief Operating & Financial Officer