PVH Corp., the parent company of popular fashion brands Calvin Klein and Tommy Hilfiger, has unveiled its ambitious multi-year strategic plan to generate over $12 billion in revenues by 2025. The plan is centered around achieving high-single digit compounded annual growth over the next three years and involves various initiatives focused on brand development, digital expansion, and direct-to-consumer efforts.
Stefan Larsson, CEO of PVH Corp., expressed the company’s dedication to adapting to the “new normal” and establishing meaningful connections with consumers in order to create lasting value. After experiencing a successful recovery in 2021, PVH Corp.’s main objective is to engage with consumers in innovative ways that resonate with their changing preferences and expectations.
Known as the PVH+ Plan, the strategic framework encompasses five key pillars. The first pillar revolves around product development, with a focus on creating exceptional offerings in key growth categories. PVH Corp. aims to captivate consumers by emphasizing these “hero products” and forging partnerships with influential leaders in the fashion industry.
The second pillar of the PVH+ Plan centers around consumer engagement. PVH Corp. intends to employ a comprehensive approach, leveraging multiple channels to connect with its target audience. By adopting an omni-channel strategy, the company aims to enhance brand loyalty and drive sustainable growth.
In terms of digital expansion, which comprises the third pillar, PVH Corp. plans to accelerate its presence in the digital marketplace. This involves developing a robust distribution strategy for its brands in the online sphere. Furthermore, the company aims to harness the power of data to drive demand and optimize its operational model.
The fourth pillar of the PVH+ Plan focuses on driving efficiencies and investing in growth opportunities. By streamlining operations and identifying areas of improvement, PVH Corp. aims to enhance its overall effectiveness and capitalize on new avenues for growth.
By executing this comprehensive strategic plan, PVH Corp. forecasts high single-digit compounded annual growth from 2021 onwards, ultimately achieving approximately $12.5 billion in revenues by 2025. This growth will be fueled by a balanced performance across the globe, with Calvin Klein and Tommy Hilfiger leading the way. Europe and the Americas are expected to experience high single-digit compound annual growth rates, while the Asia Pacific region is projected to see mid-teens compound annual growth. Additionally, PVH Corp. anticipates digital channels to achieve over 20% compound annual growth, with direct-to-consumer brick and mortar outperforming wholesale channels.
Zac Coughlin, CFO of PVH Corp., underlines the company’s enthusiasm for the strategic plan, citing its ability to leverage the global strength of their brands and unlock exciting opportunities across various channels and geographies. PVH Corp. plans to invest in fully harnessing the digital and direct-to-consumer potential of the plan, while simultaneously driving efficiencies to accelerate earnings growth and deliver sustainable returns for shareholders.
PVH Corp.’s multi-year strategic plan demonstrates its commitment to fostering growth and adapting to the changing retail landscape. By capitalizing on its iconic brands, prioritizing consumer engagement, and embracing digital innovations, PVH Corp. is determined to achieve its ambitious sales target by 2025 and generate long-term value for its shareholders.
