PVH Stock

PVH Corp. operates as an apparel company worldwide.

The company has approximately 31,000 associates operating in more than 40 countries. The company manages a portfolio of iconic brands, including TOMMY HILFIGER, Calvin Klein, Warner’s, Olga and True&Co. The company refers to its owned and licensed trademarks, other than TOMMY HILFIGER and Calvin Klein, as its ‘heritage brands’ and the businesses it operates under the heritage brands trademarks as its Heritage Brands business.

The company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, neckwear, handbags, accessories, footwear and other related products. The company’s brands are positioned to sell globally at various price points and in multiple channels of distribution. This enables the company to offer differentiated products to a broad range of consumers, reducing its reliance on any one demographic group, product category, price point, distribution channel or region. The company also licenses the use of its trademarks to third parties and joint ventures for product categories and in regions where its licensees’ expertise can better serve its brands.

The company’s directly operated businesses in North America during 2022 consisted principally of wholesale sales under its TOMMY HILFIGER and Calvin Klein trademarks and its owned and licensed heritage brands; the operation of digital commerce sites under its TOMMY HILFIGER and Calvin Klein trademarks; and the operation of retail stores, principally in premium outlet centers, under its TOMMY HILFIGER and Calvin Klein trademarks. The company’s directly operated businesses outside of North America consisted principally of its wholesale and retail sales in Europe and the Asia-Pacific region under its TOMMY HILFIGER trademarks; its wholesale and retail sales in Europe, the Asia-Pacific region and Brazil under its Calvin Klein trademarks; and the operation of digital commerce sites in Europe and the Asia-Pacific region under the TOMMY HILFIGER and Calvin Klein trademarks, and in Brazil under the Calvin Klein trademark. The company’s licensing activities principally related to the licensing worldwide of its TOMMY HILFIGER and Calvin Klein trademarks for a broad array of product categories and for use in numerous discrete jurisdictions.

The company operates through three main businesses: Tommy Hilfiger; Calvin Klein; and Heritage Brands.

Tommy Hilfiger Business

Tommy Hilfiger business consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments.

TOMMY HILFIGER is one of the world’s most recognized premium lifestyle brands, uplifting and inspiring consumers. The brand creates iconic style, which comes alive at the intersection of the classic and the new, co-created with people who are shaping culture around the world. TOMMY HILFIGER celebrates the essence of classic American style with a modern twist. Founder Tommy Hilfiger remains the company’s Principal Designer and provides leadership and direction for the design process.

The TOMMY HILFIGER brands principally consist of TOMMY HILFIGER and TOMMY JEANS. Other sub-brands are used to further capitalize on the TOMMY HILFIGER brand appeal and vary in terms of price point, product offerings, target consumer or distribution channel. Products are sold globally in the company’s stores, through its wholesale partners (in stores and online), through pure play digital commerce retailers and on tommy.com, and principally consist of men’s, women’s and kids’ sportswear, denim, underwear, swimwear, accessories and footwear. The products sold under the brands include those produced under licenses with third parties for a broad range of lifestyle products, including footwear and accessories, eyewear, watches and jewelry, as well as for certain territories.

Tommy Hilfiger’s global marketing and communications strategy is to build a consumer-centric, go-to-market strategy that maintains the brands’ momentum, driving awareness, consistency and relevancy across product lines and regions. The company engages consumers through comprehensive 360° marketing campaigns, which have a particular focus on offering capsules and collaborations together with innovative experiences and digital marketing initiatives. Marketing campaigns for the brands are focused on attracting a new generation of consumers worldwide through a blend of global and regional brand ambassadors.

Through the company’s Tommy Hilfiger North America and Tommy Hilfiger International segments, it sells TOMMY HILFIGER products in a variety of distribution channels, including:

Wholesale — principally consists of the distribution and sale of products in North America, Europe and the Asia-Pacific region under the TOMMY HILFIGER brands. In North America, distribution is primarily through department stores and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers. In Europe and the Asia-Pacific region, distribution is primarily through department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees.

Retail — principally consists of the distribution and sale of products under the TOMMY HILFIGER brands in the company’s stores in North America, Europe and the Asia-Pacific region, as well as on the tommy.com sites it operates in these regions. The company’s stores in North America are primarily located in premium outlet centers. In Europe and the Asia-Pacific region, the company operates full-price and outlet stores and concession locations.

Licensing — The company licenses the TOMMY HILFIGER brands to third parties globally for a broad range of products through approximately 35 license agreements. The company provides support to its licensees and seeks to preserve the integrity of its brands by taking an active role in the design, quality control, advertising, marketing and distribution of each licensed product, most of which are subject to the company’s prior approval and continuing oversight. The arrangements generally are exclusive to a territory or product category. Territorial licensees include the company’s joint ventures in Brazil, India and Mexico.

Tommy Hilfiger’s key licensees, and the products and territories licensed, include:

American Sportswear S.A.: Men’s, women’s and children’s apparel, footwear and accessories (Central America, South America (excluding Brazil) and the Caribbean).

F&T Apparel LLC & KHQ Investment LLC: Children’s apparel, underwear and sleepwear and boy’s tailored clothing (the United States and Canada).

G-III Apparel Group, Ltd. / G-III Apparel Canada ULC: Men’s and women’s outerwear, luggage, women’s apparel, dresses, suits and swimwear (excluding intimates, sleepwear, loungewear, hats, scarves, gloves and footwear) and men’s and women’s activewear that also bear trademarks associated with the National Football League, Major League Baseball, the National Basketball Association, the National Hockey League, Major League Soccer or their member teams (the United States and Canada).

During the fourth quarter of 2022, the company extended most of its license agreements with G-III Apparel Group, Ltd. (G-III) for TOMMY HILFIGER in the United States and Canada, which have staggered expirations from the end of 2023 through 2027. Upon expiration, the company intends to bring most of these product categories in-house and directly operate these businesses.

Handsome Corporation: Men’s, women’s and children’s apparel, sportswear, socks and accessories and men’s and women’s outerwear and golf products (South Korea).

MBF Holdings LLC: Men’s and women’s footwear (the United States and Canada).

Movado Group, Inc. / Swissam Products, Limited: Men’s and women’s watches and jewelry (worldwide).

Peerless Clothing International, Inc.: Men’s tailored clothing (the United States and Canada).

Safilo Group S.p.A.: Men’s, women’s and children’s eyeglasses and non-ophthalmic sunglasses (worldwide, excluding India).

Tommy Hilfiger North America segment includes the results of the company’s Tommy Hilfiger wholesale, retail and licensing activities in the United States, Canada and Mexico, and its proportionate share of the net income or loss of its investments in its joint venture in Mexico and in the PVH Legwear LLC joint venture (PVH Legwear) relating to each joint venture’s Tommy Hilfiger business. The company’s Tommy Hilfiger International segment includes the results of its Tommy Hilfiger wholesale, retail and licensing activities outside of North America, and its proportionate share of the net income or loss of its investments in its joint ventures in Brazil and India relating to each joint venture’s Tommy Hilfiger business.

Calvin Klein Business

Calvin Klein business consists of the Calvin Klein North America and Calvin Klein International segments.

Calvin Klein is one of the world’s leading global fashion lifestyle brands with a history of bold, non-conformist ideals. The brand’s minimalist and sensual aesthetic drives the company’s approach to product design and communication, creating a canvas that offers the possibility of limitless self-expression. Each of the brands has a distinct identity and position in the retail landscape, providing the company the opportunity to market domestically and internationally a range of products at various price points, through multiple distribution channels and to different consumer groups.

The Calvin Klein brands consist of CK Calvin Klein, Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear and Calvin Klein Performance. Products are sold globally in the company’s stores, through its wholesale partners (in stores and online), through pure play digital commerce retailers and on calvinklein.com, and principally consist of men’s and women’s sportswear, jeanswear, underwear, swimwear, footwear and accessories. The products sold under the brands include those produced under licenses with third parties for a broad range of lifestyle products, including fragrance, men’s and women's apparel, home furnishings, footwear, eyewear, watches and jewelry in various countries and regions, as well as for certain territories.

Calvin Klein’s global marketing and communications strategy is to bring together all facets of the consumer marketing experience. The Calvin Klein brands continue to generate compelling brand and cultural relevancy by continually evolving and driving consumer engagement. Marketing campaigns for the brand are focused on a truly digital first, socially powered experience for consumers, through the use of global and regional brand ambassadors, capsule collections and experiential events.

Through the company’s Calvin Klein North America and Calvin Klein International segments, it sells Calvin Klein products in a variety of distribution channels, including:

Wholesale — principally consists of the distribution and sale of products in North America, Europe, the Asia-Pacific region and Brazil under the Calvin Klein brands. In North America, distribution is primarily through department and specialty stores, warehouse clubs, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers. In Europe, the Asia-Pacific region and Brazil, distribution is primarily through department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees.

Retail — principally consists of the distribution and sale of products under the Calvin Klein brands in the company’s stores in North America, Europe, the Asia-Pacific region and Brazil, as well as on the calvinklein.com sites it operates in these regions. The company’s stores in North America are primarily located in premium outlet centers. In Europe, the Asia-Pacific region and Brazil, it operates full-price and outlet stores and concession locations.

Licensing — The company licenses the Calvin Klein brands throughout the world in connection with a broad array of product categories. In these arrangements, Calvin Klein combines its design, marketing and branding skills with the specific manufacturing, distribution and geographic capabilities of its partners to develop, market and distribute these goods, most of which are subject to the company’s prior approval and continuing oversight. Calvin Klein has approximately 40 licensing and other arrangements across the Calvin Klein brands. The arrangements generally are exclusive to a territory or product category. Territorial licensees include the company’s joint ventures in India and Mexico.

Calvin Klein’s key licensees, and the products and territories licensed, include:

CK21 Holdings Pte. Ltd.: Men’s and women’s CK Calvin Klein apparel (Asia, excluding Japan).

Coty Inc.: Men’s and women’s fragrance (worldwide).

Himatsingka Seide, Ltd.: Soft home bed and bath furnishings (the United States, Canada, Mexico, Europe, the Middle East, Asia and India).

F&T Apparel LLC & KHQ Investment LLC: Children’s jeanswear and certain performance wear (the United States and Canada).

G-III Apparel Group, Ltd.: Women’s suits, dresses, sportswear, jeanswear, active performancewear, handbags and small leather goods, men’s and women’s coats, men’s and women’s luggage and men’s and women’s swimwear (the United States and Canada with luggage jurisdictions, including Europe, Asia and elsewhere).

During the fourth quarter of 2022, the company extended most of its license agreements with G-III for Calvin Klein in the United States and Canada, which have staggered expirations from 2024 through 2027. Upon expiration, the company intends to bring most of these product categories in-house and directly operate these businesses.

MBF Holdings LLC: Men’s and women’s Calvin Klein and Calvin Klein Jeans footwear (the United States and Canada).

Marchon Eyewear, Inc.: Men’s and women’s optical frames and sunglasses (worldwide).

Movado Group, Inc.: Men’s and women’s watches and jewelry (worldwide).

Peerless Clothing International, Inc.: Men’s tailored clothing (the United States, Canada and Mexico).

The company’s Calvin Klein North America segment includes the results of the company’s Calvin Klein wholesale, retail and licensing activities in the United States, Canada and Mexico, and its proportionate share of the net income or loss of its investments in its joint venture in Mexico and in PVH Legwear, relating to each joint venture’s Calvin Klein business. The company’s Calvin Klein International segment includes the results of its Calvin Klein wholesale, retail and licensing activities outside of North America, and its proportionate share of the net income or loss of its investment in its joint venture in India relating to the joint venture’s Calvin Klein business.

Heritage Brands Business

Heritage Brands business consists of the Heritage Brands Wholesale segment.

The company’s Heritage Brands business includes the design, sourcing and marketing of a varied selection of women’s intimate apparel principally under the Warner’s and True&Co. brands and men’s underwear under the Nike brand, which is licensed.

The company’s Heritage Brands Wholesale segment derives revenue primarily from the distribution and the sale of products in the United States and Canada through department, chain and specialty stores, warehouse clubs, mass market and off-price retailers (in stores and online), as well as through pure play digital commerce retailers.

The company’s Heritage Brands Wholesale segment principally includes the results of its wholesale and licensing activities, and its proportionate share of the net income or loss of its investments in its joint venture in Mexico and in PVH Legwear relating to each joint venture’s Heritage Brands business.

Business Strategy

The key elements of the company’s strategy include developing compelling products in the market across key growth categories, with a focus on expanding in large and growing global demand spaces where its iconic brands resonate most with consumers; driving digital-first, 360° consumer engagement built around brand, key products and key consumer moments, partnering with creators in the industry who are most relevant to each of its brands, and building out each brand’s ambassador program, to meet consumers on their terms in new and engaging ways; building a holistic distribution strategy for Calvin Klein and TOMMY HILFIGER, led by digital and direct-to-consumer channels, and supported by key wholesale partnerships; and driving a systematic and repeatable product creation model that puts the consumer first and leverages data to bring products consumers most desire to market with speed and agility.

The company manages a portfolio of global iconic brands, including TOMMY HILFIGER and Calvin Klein. The company does continue to explore strategic acquisitions of licensed businesses, companies and trademarks, licensing take-backs and licensing opportunities that are additive to its overall business.

Seasonality

The company’s business generally follows a seasonal pattern. The company’s wholesale businesses tend to generate higher levels of sales in the first and third quarters (year ended January 2023), while its retail businesses tend to generate higher levels of sales in the fourth quarter.

Warehousing, Distribution and Logistics

The company’s products are shipped from manufacturers to its wholesale and retail warehousing and distribution centers for inspection, sorting, packing and shipment. Centers range in size, and the company’s main facilities, some of which are owned and operated by independent third parties, are located in the United States, the Netherlands, Canada, China, Japan, South Korea, Brazil and Australia. The company’s warehousing and distribution centers are designed to provide responsive service to its wholesale and digital commerce customers, as well as its retail stores.

Material Customers

Sales to the company’s five largest customers were 14.1% of its revenue in 2022.

Advertising and Promotion

The company is focused on driving consumer engagement though a digital-first 360° approach around key hero products and key consumer moments, utilizing its iconic brands as creative platforms for collaborations, capsule collections and experiential events, and partnering with culturally relevant talent to build brand heat.

The company designs and markets its products to complement each other, satisfy lifestyle needs, emphasize product features important to its target consumers, including sustainability attributes, deliver a strong price/value proposition and encourage consumer loyalty.

The company’s marketing and advertising efforts encompass marketing, communications, social media and special events. The company’s in-house teams coordinate its brands’ marketing and advertising, tailoring the overall consumer experience for all regions and product lines, and across all channels of distribution.

A significant emphasis of the company’s marketing programs is digital media, including its digital commerce platforms and social media channels, which allow it to expand its consumer reach and enable it to provide timely information in an entertaining fashion in regard to its products, special events, promotions and store locations. Tommy Hilfiger’s digital commerce site, tommy.com, and Calvin Klein’s digital commerce site, calvinklein.com, serve as marketing vehicles to complement the ongoing development of the TOMMY HILFIGER and Calvin Klein lifestyle brands, respectively, in addition to offering a broad array of apparel and licensed products. In 2022, a significant portion of the company’s marketing and advertising spend related to digital media.

The company leverages new ways to engage consumers through livestreaming fashion shows and other consumer activations and in partnership with top live-streamers and pure play partners, as well as through new innovative and creative ways that engage consumers in the metaverse. In addition, the company advertises its brands through sport sponsorships and product tie-ins.

Trademarks

The company owns the TOMMY HILFIGER, Calvin Klein, Warner’s, Olga and True&Co. trademarks, as well as related trademarks (e.g., the TOMMY HILFIGER flag logo and crest design) and lesser-known names. The company owns the Calvin Klein trademarks through its ownership of the Calvin Klein Trademark Trust (the Trust). The sole purpose of the Trust is to hold these marks.

History

PVH Corp. was founded in 1881. The company was incorporated in the state of Delaware in 1976.