About Pvh Neckwear, Inc.

PVH has the buttoned-up look down. A top global apparel player, PVH is the world's largest dress shirt and neckwear company. The company owns three titans of the apparel industry: Calvin Klein, Tommy Hilfiger, and Heritage Brands. The former two are multi-billion dollar global lifestyle brands, while Heritage Brands is a luxury apparel wholesaler that owns the brands Van Heusen, IZOD, ARROW, Warner's, Olga, and True&Co. PVH is also has licenses for third-party brands such as DKNY, Speedo, Kenneth Cole Reaction, Michael Kors Collection, and others. The company generates sales from multiple channels, including about 1,600 company-operated retail stores as well as retailers and licensees. It also charges royalty and advertising fees.

Operations

PVH organizes its business into three main areas: Calvin Klein, Tommy Hilfiger, and Heritage Brands.

Calvin Klein accounts for over 35% of revenue and runs a number of sub-brands alongside its Calvin Klein "master" brand: Calvin Klein By Appointment, Calvin Klein Jeans, CK Calvin Klein, Calvin Klein Jeans, and Calvin Klein 205 W39 NYC (the unusual name relates to its New York address). Together they fill various product niches, categories, and price points.

Tommy Hilfiger, split into Tommy Hilfiger North America and Tommy Hilfiger International, contributes some 45% to PVH's revenue. The brand makes everyday and formalwear for the upper-middle class, characterized by its classic American preppy stylings. As with Calvin Klein, it runs a number of sub-brands: Hilfiger Collection, Tommy Hilfiger Tailored, Tommy Hilfiger, and Hilfiger Denim. It sells its products wholesale to third party retailers and at retail via a network of owned outlets, and has around 25 license agreements with third parties in Australia, Brazil, India, and Mexico, among other countries.

Heritage Brands accounts for around 20% of revenue and makes shirts, neckwear, sportswear, swimwear, intimates, underwear, and accessories through a range of owned brands and licensed brands. Its licensed brands are Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection, and Chaps. It sells wholesale and through Heritage Brands retail outlets across the United States and Canada. Some of its stores stock IZOD Golf, Warner's, and Speedo products. Heritage Brands also licenses its products to 35 US and 40 international companies.

PVH also completes e-commerce sales through its various brand websites.

The company's products are made in more 1,600 factories in more than 50 countries worldwide. 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. The centers inspect, sort, pack, and ship goods to customers.

Geographic Reach

The company sells products in the US, Canada, Europe, Asia, Mexico, and Brazil. Its US business accounts for over 50% of sales.

Sales and Marketing

Macy's is PVH's largest Calvin Klein and Tommy Hilfiger wholesale customer. Heritage Brands sells wholesale to department stores such as 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 five largest customers account for more than a fifth of total revenues.

Financial Performance

After several years of steady revenue growth, sales dipped in 2015 before bouncing back in fiscal 2016: sales climbed 2% to $8.2 billion.

PVH's revenue growth in fiscal 2016 was uneven, with solid gains in Calvin Klein (International and North America) and Tommy Hilfiger International offset by falls in Tommy Hilfiger North America and Heritage Brands. Growth came from the Calvin Klein domestic wholesale business and the Tommy Hilfiger International business in Europe. The business was impacted across the board by the strong US dollar.

Net income slid 4% to $549 million as selling, general, and administrative expenses were pushed up by acquisition costs and higher marketing costs.

Cash from operating activities increased by $55 million to $955 million due to changes in working capital relating to inventory and accrued expenses.

Strategy

PVH is unifying Calvin Klein under one creative vision. The process began when it took back full control of its jeans and underwear businesses in 2013, and continued in 2016 with the sacking of Francisco Costa and Italo Zucchelli, the women's and men's creative directors, to clear the way for a unified global creative director role. Raf Simons was given the position.

The company focuses on reinvesting in businesses and pursuing strategic acquisitions. PVH's strength lies in the fact that it maintains a strong, diversified brand portfolio. Its portfolio is growing through acquisitions and it is supported by a model that offers multiple brands and product types globally at different price points and across a range of distribution channels. The variety in products and distribution channels allows the company to reach a broad range of consumers in various geographic regions. The move in 2016 to buy full control of TH Asia signaled the start of direct involvement in the Chinese market

Mergers and Acquisitions

In 2017 PVH acquired True&Co, an online retailer specializing in bras.

In 2016 the company bought the remaining 55% of TH Asia Ltd., its joint venture for Tommy Hilfiger in China. With the closing of this transaction, Tommy Hilfiger business now operates directly in its fastest growing market, while leveraging its well-established infrastructure in Asia.

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Pvh Neckwear, Inc.

1735 S Santa Fe Ave
Los Angeles, CA 90021-2904
Phone: 1 (213) 688-7970
Fax: 1 (213) 623-3226

Stats

  • Employer Type: Public
  • Chief Mechanic: Salvador Inda
  • Senior Merchandising Manager: Lynn Sarver
  • Ceo: Marc Schneider
  • Employees: 660

Major Office Locations

  • Los Angeles, CA