PVH Corp. Presents the ‘PVH+ Plan’, Its Multi-Year Strategic Plan to Drive Brand, Digital and DTC-Led Growth to Accelerate Financial Performance
- Provides roadmap for brand-, digital- and direct-to-consumer (DTC)-led sustainable, profitable growth through 2025 to deliver accelerated financial performance and long-term value creation
- Powered by leveraging the strength of PVH’s two iconic global brands, Calvin Klein and TOMMY HILFIGER, and connecting them closer to the consumer than ever before
- 2025 financial objectives include high single-digit global compounded annual revenue growth and total revenue target of $12.5 billion, with operating margin expanding to 15% and free cash flow above $1 billion
- Board authorizes $1.0 billion increase to PVH stock repurchase program
PVH Corp. is holding its 2022 Investor Day to introduce the PVH+ Plan, its multi-year, strategic growth plan, provide an overview of the opportunities to fully leverage the strength of its two iconic global brands in all regions, and share how this plan will achieve the Company’s financial objectives.
Stefan Larsson, Chief Executive Officer, commented, “Having successfully driven an accelerated recovery and generated record earnings per share in 2021, our priority now is to connect with the consumer in ways that reflect the formula to win in the ‘new normal’ and create long-term value. The execution of the PVH+ Plan will accelerate the growth of Calvin Klein and TOMMY HILFIGER, two of the most iconic brands in the world, by unlocking their full potential across each of our regions.”
The PVH+ Plan is the Company’s strategy to accelerate growth by building on the core strengths of PVH and connect Calvin Klein and TOMMY HILFIGER – each with high global brand awareness and deep loyalty – closer to the consumer than ever before through five key drivers:
- Win with product – PVH will develop the best hero products in the market across key growth categories, with a focus on expanding in large and growing global demand spaces where the Company’s iconic brands resonate most with consumers.
- Win with consumer engagement – By driving digital-first, 360-degree consumer engagement built around brand, hero products and key consumer moments, partnering with the best creators in the industry, and building out each brand’s ambassador program, Calvin Klein and Tommy Hilfiger will meet consumers on their terms in new and engaging ways.
- Win in the digitally-led marketplace – The consumer of today shops digitally first and expects seamless integration of their physical and digital experiences. PVH is accelerating digital growth by 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.
- Develop a demand- and data-driven operating model – PVH is developing a demand- and data-driven operating model, starting with a systematic and repeatable product creation model that puts the consumer first and leverages data to bring new and fresh products to market with speed and agility.
- Drive efficiencies and invest in growth –A key driver of the PVH+ Plan will be the relentless focus on driving efficiencies to become more cost-competitive and reinvest in key strategic growth drivers. PVH is simplifying how its teams work and identifying efficiencies to fuel initiatives with the greatest positive impact and strongest return.
These five foundational drivers apply to each of PVH’s businesses and are activated in the regions to reflect consumer differences and their unique expectations. Leveraging the full power of Calvin Klein and TOMMY HILFIGER, PVH is building on its market-leading strength in Europe, accelerating from strength in Asia Pacific, and unlocking the full potential of the strength of its brands in the Americas.
Zac Coughlin, Chief Financial Officer said: “Our new, multi-year strategic growth plan leverages the global strength of our brands and reflects the compelling opportunities we see across our channels and geographies. While investing to fully capitalize on the global, digital and DTC-focused potential of our plan, we will also drive efficiencies that together will accelerate earnings growth and deliver strong and sustainable shareholder returns.”
The execution of the PVH+ Plan is expected to achieve the following financial objectives:
- Revenue: High single-digit compounded annual growth (“CAGR”) from 2021 to approximately $12.5 billion in 2025. The key drivers of revenue growth across brand, region and channel include:
- Balanced growth from Calvin Klein and TOMMY HILFIGER globally
- High single-digit CAGR in Europe and the Americas; mid-teens CAGR in Asia Pacific
- 20%+ CAGR in digital channels
- Direct-to-consumer brick & mortar outpacing wholesale brick & mortar
- Operating margin: Expected to expand to approximately 15% in 2025
- Free cash flow: Expected to be over $1.0 billion in 2025
The Company reaffirms its first quarter and full year 2022 outlook previously announced on March 29, 2022.
Stock Repurchase Program
On April 11, 2022, the Board of Directors, through its Executive Committee, approved a $1.0 billion increase to the Company’s stock repurchase authorization and extended it three years to June 2026.
This release refers to free cash flow, which is defined as cash flow from operations less capital expenditures and dividends.
Investor Day Webcast
A live video webcast of the event, along with accompanying slides, will be streamed simultaneously starting at 8:30 a.m. EDT. A link to the event and the slides is available on the Company’s website, www.PVH.com, under the Investors section. A replay of the webcast will be available starting shortly after the event on the PVH website.
Presenters include Stefan Larsson, Chief Executive Officer; Zac Coughlin, Chief Financial Officer; Tom Chu, Regional President, PVH Asia Pacific; Trish Donnelly, Chief Executive Officer, PVH Americas & Calvin Klein Global; Martijn Hagman, Chief Executive Officer, PVH Europe & Tommy Hilfiger Global; Avery Baker, President and Chief Brand Officer, Tommy Hilfiger Global; and Jessica Lomax, Executive Vice President, Global Head of Design of Calvin Klein.