PVH NECKWEAR, INC.

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. Clothing, accessories, and footwear for men, women, and children are among its wares. PVH also 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 portfolio. PVH generates sales from multiple channels: more than 1,000 company-operated retail stores (retail), retailers, licensees, franchisees, and distributors who resell (wholesale), and royalty and advertising fees (licensing).

Operations

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 1,000 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 StoresJ. 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.

Financial Performance

PVH achieved record revenue of $6 billion in fiscal 2013 (ends Sunday nearest February 1), about 40% of which is attributed to international markets. Tommy Hilfiger and Calvin Klein together generated about 72% of the company's revenue for the year.

Mergers and Acquisitions

PVH is one of the world's largest branded lifestyle apparel companies thanks to several notable acquisitions. Its $2.9 billion acquisition of The Warnaco Group in 2013 builds upon previous acquisitions of Tommy Hilfiger Group (THG) for $3 billion in 2010 and Calvin Klein in 2003. The Warnaco acquisition not only deepens the diversity of the company's lineup with Warner's and Olga women's intimate apparel brands and a perpetual license with Speedo International, owner of Speedo swimwear and accessories, but it brings various Calvin Klein brands under one corporate roof. PVH already controlled design and product development of the Calvin Klein brands, while Warnaco held the Calvin Klein jeans and underwear licenses. Now with direct global control and a single brand vision, PVH expects to be able to better coordinate product design, merchandising, supply chain, and retail distribution and marketing to extend the Calvin Klein brand's global reach even further. Meanwhile, Warner's, Olga, and Speedo are being integrated into PVH's Heritage Brands segment. Prior to its acquisition, Warnaco was PVH's largest licensee for Calvin Klein products and made royalty and administrative fee payments on sales of Calvin Klein underwear, sleepwear, and loungewear. PVH's Calvin Klein Licensing segment accounted for about 7% of revenues in fiscal 2013.

Strategy

As a result of the Warnaco acquisition, PVH is undergoing significant investment and transition. The company is working to improve its existing systems and supply chain infrastructure, revise Calvin Klein jeanswear product design based on geographic preferences, invest in in-store marketing and store experience, hiring design, marketing, and merchandising personnel, and restructure off-price and club sales distribution in North America and Europe. Using Warnaco's established presence and local operations in Asia and Latin America, PVH also plans to pursue further growth in these emerging markets.

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 and thus reducing reliance on any one demographic.

Ownership

FMR owns about 10% of the company, while Earnest Partners holds a more than 7% stake in PVH.

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PVH NECKWEAR, INC.


1735 S Santa Fe Ave
Los Angeles, CA 90021-2904
Phone: 1 (213) 892-8569
Fax: 1 (213) 6233226
www.pvh.com

STATS


  • Employer Type: Unknown
  • Vp Of Neckwear It: Robert Bolger
  • Vp: Lauretta Cunningham
  • Ceo: Marc Schneider

Major Office Locations

  • Los Angeles, CA

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