Memo from our CEO

PVH delivered strong underlying
financial performance in 2016.

Manny Chirico

During a year of continued volatility in the retail environment, PVH drove strong execution, while we continued to evolve our business model. We empowered our teams to think creatively, capitalize on new product and business opportunities and find innovative ways to engage consumers. As a result, we experienced great momentum across our businesses and delivered outstanding earnings per share results that exceeded our guidance throughout the year. 

Succeeding in the current business environment has required us to embrace change and adopt new initiatives to ensure that our business model is positioned for future success. In our industry, we see the convergence of the digital and physical worlds and a shift in consumer buying habits. More broadly, we are increasingly faced with geopolitical issues ranging from potential U.S. trade and regulatory reform, potential U.S. tax reform (including the spectre of border adjustment taxes), Brexit, national elections in key European countries and continued foreign currency volatility against the U.S. dollar. As one of the largest global apparel companies, we have been caught in the crosshairs of many of these issues; however, we believe that our industry leading talent and long-term approach to managing the company will drive our business forward. 

During 2016, we continued to evolve our brands to maintain their relevance with consumers. With CALVIN KLEIN nearly 50 years old and Tommy Hilfiger over 30 years old, we continued to re-invest in key areas such as products, marketing and talent. We had several high-profile announcements this year, including the hiring of Raf Simons as Chief Creative Officer of Calvin Klein in August 2016. With the brand in a very strong position prior to the announcement, we felt that this was an opportune time to invest in CALVIN KLEIN by putting all of the CALVIN KLEIN brands under one visionary for the first time since before we bought the business in 2003. For Tommy Hilfiger, Gigi Hadid was enlisted as our global brand ambassador for the womenswear business beginning with the Fall 2016 collection. This strategic partnership has been overwhelmingly successful to date and helped drive awareness for the brand’s womenswear and accessories, which are key global growth opportunities.

PVH delivered strong underlying financial performance in 2016. Our revenues again exceeded $8 billion and we posted GAAP earnings per share of $6.79. Importantly, we achieved these results while continuing to invest in our businesses, as we enhanced our brand teams, products, marketing campaigns and regional operating platforms, including our systems.

Beyond our financials, I am most proud of the many accomplishments that we achieved across our organization and in the communities in which we work and live. We partnered with the United Nations on several initiatives, including signing the Women’s Empowerment Principles, which promotes gender equality in the workplace, as well as the UN Global Compact, which is focused on implementing universal sustainability principles. This is in addition to our successful initiatives on sustainability and corporate responsibility within our businesses and through our associates’ company-sponsored community service and philanthropic activities.

Powered by our extraordinary team, innovative mindset and global brand stewardship, I have never been more confident in the future we are creating. I look forward to another year of executing on our strategic initiatives and delivering value to our stockholders, while successfully navigating the continued uncertainty of the retail environment.

Sincerely,
Emanuel Chirico
Chairman and Chief Executive Officer