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 more than 1,800 company-operated retail stores, and approximately 1,500 concession stands, retail partners, and licensees. It also charges royalty and advertising fees. Nearly 45% of sales were generated in the US.
PVH organizes its business into three main areas: Tommy Hilfiger, Calvin Klein, and Heritage Brands.
Tommy Hilfiger, split into Tommy Hilfiger North America and Tommy Hilfiger International, contributes nearly 50% to PVH's revenue. The brand makes every day and formalwear for the upper-middle class, characterized by its classic American preppy stylings. It runs a number of sub-brands, such as Hilfiger Collection, Tommy Hilfiger Tailored, Tommy Hilfiger, Tommy Jeans, and Tommy Sport. 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 Brazil, India, and Mexico, among other countries.
Calvin Klein accounts for more than 35% of revenue and runs a number of sub-brands alongside its Calvin Klein "master" brand: Calvin Klein, Calvin Klein Jeans, Calvin Klein Performance, CK Calvin Klein, and Calvin Klein Underwear. Together they fill various price points, through multiple distribution channels and to different consumer groups. As with Tommy Hilfiger, Calvin Klein has around 45 licensing and other arrangements across its brands, including JVs in India, and Mexico.
Heritage Brands accounts for around 15% 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 DKNY, Speedo, Kenneth Cole New York, Kenneth Cole Reaction, 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 has licensing agreements with around 80 US and international companies.
PVH's products are made in more 1,200 factories in some 50 countries worldwide. PVH maintains wholesale and retail warehousing and distribution centers in the US, China, South Korea, Brazil, Australia, Canada, Japan, and the Netherlands. The centers inspect, sort, pack, and ship goods to customers.
The company sells products in the US, Canada, Europe, Asia, Mexico, and Brazil. Its US business accounts for about 45% of sales and Europe accounts for more than 35%. Asia, Canada, and others bring in the rest.
The company is headquartered in New York.
Sales and Marketing
PVH has a relatively concentrated customer base. Its five largest customers, including Macy's, J. C. Penney, account for about 20% each of sales.
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 . The Tommy Hilfiger marketing team also coordinates appearances by the designer himself, Tommy Hilfiger, at runway shows, special events, and flagship store openings.
The company's advertising expenses totaled $509.7 million, $526.0 million, and $501.3 million in 2019,2018, and 2017 respectively.
PVH's sales have been rising for the last five years with an overall growth of 24%. Revenue in 2019 was $9.9 billion.
The increase in revenue of $252 million, or 3%, in 2019 as compared to 2018 was due principally to the net effect of the net addition of an aggregate $367 million of revenue, or an 8% increase over the prior year, attributable to its Tommy Hilfiger International and Tommy Hilfiger North America segments, which included a negative impact of $129 million, or 3%, related to foreign currency translation.
Net income was reduced 44% to $417.3 million in 2019.
PVH's cash on hand rose $51.4 million during fiscal 2019, standing at $503.4 million at year's end. The company's operations generated $1 billion, offset by $505.9 million used in investing activities and $451.6 million used in financing activities. PVH's main cash uses in fiscal 2019 were capital expenditures, debt repayments, and share repurchases.
PVH sees opportunities for long-term growth as it employs its strategic priorities across the organization. Its global growth strategies include:
Driving consumer engagement through innovative designs and personalized brand and shopping experiences that capture the heart of the consumer;
Leveraging data driven marketing to deepen the relationships with consumers through segmented product assortments and personalized content;
Expanding its worldwide reach through organic growth and acquisitions;
Investing in and evolving how it operates by leveraging technology and data to be dynamic, nimble and forward-thinking;
Evolving its supply chain to adapt more quickly to change and reduce lead times;
Developing a talented and skilled workforce that embodies its core values and an entrepreneurial spirit, while empowering its associates to design its future;
And delivering sustainable, profitable growth and generating free cash flow to create long-term stockholder value.
Mergers and Acquisitions
Bringing some of its international businesses under direct control, in 2019 PVH spent about $90 million on acquiring the remaining about 80% of Gazal Corporation, PVH's long-term Australian partner, that it did not already own. PVH also paid approximately $75 million to acquire the Tommy Hilfiger business in Hong Kong, Macau, Taiwan, Singapore, and Malaysia. The transaction is intended to allow the company to capitalize on the significant growth opportunity in the region.
1735 S Santa Fe Ave
Los Angeles, CA 90021-2904
Phone: 1 (213) 688-7970
Employer Type: Privately Owned
Director Of Human Resources: Patricia Winkler
Employees (This Location): 520
Employees (All Locations): 660
Los Angeles, CA