The principal growth opportunity for our "halo" brand is to broaden the current distribution through the continued opening of freestanding stores operated throughout the world by our experienced retail partners, as well as through expanded distribution by our wholesale men's and women's high-end collection apparel and accessories business within premier department stores and specialty stores in both the United States and overseas.

Our "bridge" brand, ck Calvin Klein, provides significant growth opportunities, particularly in Europe and Asia, where apparel and accessories are more traditionally sold in the upper-moderate to upper "bridge" price range. Specific growth opportunities include:

• Broadening distribution of apparel and accessories through continued expansion in key markets such as Southeast Asia, China and Japan, as well as Europe and the Middle East; and
• Expansion of the watch and jewelry lines worldwide.

We believe that the Calvin Klein white label "better" brand presents the largest growth opportunity, particularly in the United States, Canada and Mexico. Growth opportunities for this brand include:

• Continued expansion of our men's sportswear business;
• Continued development of the licensed lines of men's and women's footwear, handbags, women's sportswear, women's suits, dresses, women's swimwear, men's and women's outerwear, accessories, and women's clothing/apparel/performance apparel;
• Introduction and growth of the ck one lifestyle brand consisting of contemporary men's and women's jeanswear, underwear, and swimwear, inspired by the iconic, globally recognized ck one fragrance brand (Spring 2011);
• Introduction and growth of new fragrance offerings and brand extensions, such as Calvin Klein Beauty (Fall 2010), Forbidden Euphoria (Fall 2011), and ck one Shock (Fall 2011) fragrances;
• Introduction and growth of new underwear brand extensions such as the men's X (Fall 2010), women's Envy (Fall 2010), and women's Naked Glamour (Fall 2011) lines;
• Introduction and growth of new jeanswear extensions such as the men's and women's X Jean (Fall 2010) lines; and
• Pursuit of additional licensing opportunities for new product lines such as the introduction of Calvin Klein Golf men's and women's apparel and accessories in Europe (Spring 2010), as well as in Asia and Japan (Fall 2011), and the launch of Calvin Klein Jeans footwear for men's and women's (Spring 2011), eyewear (Fall 2011), and kids footwear (Fall 2011).

We believe that there is significant potential for further expansion in Europe:

• Growing the business in product categories that we believe are currently underdeveloped in Europe such as pants, outerwear, underwear and accessories, as well as the womenswear collection;
• Increasing the Tommy Hilfiger brand's presence in underpenetrated markets where we believe there is growth potential such as Italy, France, the United Kingdom, Scandinavia and Central and Eastern Europe (including Russia), through both our own retail expansion and increased wholesale sales, which we intend to support with increased advertising and marketing activities; and
• Increasing Tommy Hilfiger's overall presence in Europe through the expansion of specialty and outlet retail stores.

We intend to achieve growth in the North American business by:

• Expanding our strategic alliance with Macy's by leveraging our logistics capabilities and "preferred vendor" relationship with Macy's and adding product categories to the merchandise assortments, increasing and enhancing the locations of "shop-in-shop" stores in high-volume Macy's stores and featuring Tommy Hilfiger products in Macy's marketing campaigns; and
• Expanding product offerings by Tommy Hilfiger and its licensees in both the retail and wholesale channels.

• We intend to capitalize on opportunities, when the environment in Japan stabilizes, to grow the Tommy Hilfiger business in Japan by optimizing our store footprint, including the opening of new stores, introducing regional sizing, enhancing product offerings and other initiatives targeted at local market needs.
• We have taken back control of our China business from our former licensee in August 2011 and our India business from our former licensee in September 2011 and now have direct involvement in the operation of each of these businesses through joint ventures that include local partners. We believe this should put us in a better position to support the development and expansion of the business in these important markets, where we believe there are many opportunities for growth.
• We intend to continue a balanced strategy, acquiring licensees, distributors and franchisees where we believe we can achieve greater scale and success compared to our partners, while at the same time licensing businesses for product categories and markets when we believe experienced and/or local partners provide the best opportunity for success.

In September 2009, Tommy Hilfiger re-launched its e-commerce business using a new platform in selected European countries and North America. We intend to seek to improve the online capabilities and functions of the e-commerce sites to improve the shopping experience and attract additional business.

We intend for each of our brands to be a leader in its respective market segment in the United States, with strong consumer awareness and loyalty. We will continue to design and market our branded products to complement each other, satisfy lifestyle needs, emphasize product features important to our target consumers and increase consumer loyalty. We will seek to increase our market share in our businesses by expanding our presence through product extensions and increased floor space. We are also committed to investing in our brands through advertising and other means to maintain strong customer recognition of our brands.

We intend to expand the international distribution of our brands. To date, we have done so principally through licensing. We intend to explore opportunities to develop larger European businesses for our heritage brands through the efforts of our newly formed PVH Europe division, which is managed by a team of Tommy Hilfiger executives and dedicated staff based in Amsterdam. Its first endeavor is operating the ARROW business in parts of Europe which commenced with the Fall 2011 collection. We have approximately 40 license agreements, covering approximately 120 territories outside of the United States to use our heritage brands in numerous product categories, including apparel, accessories, footwear, soft home goods and fragrances. We also conduct international business directly, selling dress furnishings and sportswear products to department and specialty stores throughout Canada and operate a select few stores in Canada. We believe that our strong brand portfolio and broad product offerings enable us to seek additional growth opportunities in geographic areas where we believe we are underpenetrated, such as Europe and Asia.