PVH has the buttoned-up look covered. A top global apparel player, it is the world's largest dress shirt and neckwear company. PVH owns and globally markets lifestyle brands Calvin Klein and Tommy Hilfiger. Its closet also overflows with clothing, accessories, and footwear for men, women, and children. PVH owns Heritage Brands, which include Van Heusen, IZOD, ARROW, and Bass. Private-label and licensed brands, such as DKNY, Kenneth Cole New York, and MICHAEL Michael Kors, round out its wardrobe. PVH generates sales from multiple channels: more than 1,900 company-operated retail stores, retailers, licensees, franchisees, distributors who resell, and royalty and advertising fees.
PVH organizes its business into three main areas. Generating more than half of PVH's revenue, Tommy Hilfiger consists of North America and International segments. Calvin Klein consists of the Calvin Klein Licensing and Other (Calvin Klein Apparel) segments, comprising Calvin Klein dress furnishings, sportswear, and outlet retail divisions in North America. Finally, Heritage Brands consists of the Heritage Brand Dress Furnishings (men's dress shirts and neckwear), Wholesale Sportswear, and Retail segments.
In addition to the more than 1,900 retail stores that it operates, PVH maintains wholesale and retail warehousing and distribution centers in the US, Canada, Japan, and the Netherlands that inspect, sort, pack, and ship goods to customers.
Sales and Marketing
PVH's Calvin Klein, Tommy Hilfiger, and Heritage Brands businesses all distribute products through multiple channels, including retail, wholesale, and licensing to third parties. Within the retail channel, each business has its own network of company-operated stores (those in the US and Canada tend to be located in outlet malls), specialty stores, and company-operated e-commerce sites. On the wholesale side, Calvin Klein and Tommy Hilfiger products are sold to distributors for resale, stores operated by licensees and franchisees, and department stores like Macy's (PVH's top customer) and Dillard's. Tommy Hilfiger products are also sold through joint ventures in such emerging markets as Brazil, China, and India.
Heritage Brands products are distributed wholesale to the likes of Bon-Ton Stores, J. C. Penney, Kohl's, and Sears. Each of the Calvin Klein, Tommy Hilfiger, and Heritage Brands businesses have a number of licensing partners domestically and abroad, who have the right to manufacture and wholesale specified products under one or more brands or are granted the right to open retail stores under the licensed brand name.
PVH targets the marketing of its brands at distinct consumer demographics. The company advertises its brands through digital media (including its e-commerce and social media sites), national print media, television, outdoor signage, special events, promotions, and store locations. It also advertises through product tie-ins and sport sponsorships (Calvin Klein/basketball, Van Heusen/football, and IZOD/golf). The Tommy Hilfiger marketing team also coordinates appearances by the designer himself, Tommy Hilfiger, at runway shows, special events, and flagship store openings.
PVH's strength lies in the fact that it maintains a strong, diversified brand portfolio that is growing through acquisitions and supported by a model that offers multiple brands and product types globally at different price points and across a range of distribution channels -- from retail to licensing -- allowing PVH to reach a broad range of consumers in various geographic regions thus reducing reliance on any one demographic.