PVH has a long history of financial growth and operational excellence. With nearly $9 billion in 2017 revenues, we are one of the largest global apparel companies. We currently generate over 50% of our revenues outside the U.S., and we anticipate that our non-domestic revenue penetration will expand further as our CALVIN KLEIN and TOMMY HILFIGER brands continue to grow overseas.
Drive consumer engagement by investing in brand, product, channel, and in-store and online experiences.
Expand CALVIN KLEIN's and TOMMY HILFIGER’s worldwide reach and extend direct control over various licensed businesses.
Invest in and evolve our operating platforms through our systems, consumer data, speed to market, digitalization, supply chain initiatives and centers of excellence.
Develop a talented and skilled organization that embodies our core values by attracting and retaining talent through associate engagement and career growth opportunities, while providing an inclusive workplace where every individual is valued.
Generate free cash flow by accelerating topline growth and focusing on margin and working capital opportunities, while seeking to maximize returns.
Since our acquisition of Calvin Klein in 2003, global retail sales of CALVIN KLEIN products have grown at a 9% compound annual growth rate, exceeding $9 billion in 2017. We believe significant growth opportunities exist to drive CALVIN KLEIN global retail sales further over time, which include:
Be consumer-centric and enhance global relevance through marketing campaigns and consumer engagement initiatives designed to drive growth and further resonate with youth-minded consumers.
Drive product improvement and expansion, particularly within apparel, jeans, accessories and women’s intimates.
Develop compelling digital experiences, while also growing our presence in specialty stores and opening additional travel retail locations.
Gain greater control of the brand by taking back licensed businesses to operate them directly.
Sharpen our processes by enhancing our data capabilities.
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 7% compound annual growth rate since 2010, reaching $7.4 billion in 2017. We believe that we can further grow TOMMY HILFIGER through a number of product and regional initiatives which include:
Be consumer-centric and 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.
Category expansion within womenswear and accessories, men’s tailored clothing and underwear.
Drive regional expansion, particularly in Asia Pacific.
Digitize TOMMY HILFIGER from showrooms to stores and online experiences.
Evolve our supply chain to adapt more quickly to change.
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:
Be consumer-centric by designing and marketing quality, trend-right products that offer great value to our consumers and introducing products with new technologies and new features.
Leverage and enhance each brand’s position in the market.
Maximize distribution, with the greatest opportunities in mass market retailers and digital commerce (through our wholesale partners, as well as our own digital commerce websites, including IZOD.com, VanHeusen.com and styleBureau.com, which launched in Summer 2018).
Enhance profitability by capitalizing on supply chain opportunities and leveraging consumer insights, while also reducing costs and maintaining a critical focus on inventory management.
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 encourage associates across our organization to be forward thinking, with a focus on adapting to the evolving consumer environment, enhancing our brands and their competitive positioning across product lines and geographies, and better aligning our business to make it easier to initiate and effect change.