PVH Corp., the parent of Calvin Klein and Tommy Hilfiger, at its 2022 Investor Day on April 13, released a strategic plan to reach $12.5 billion in annual sales by 2025, up from annual sales of $9.155 billion in 2021.

Stefan Larsson, CEO, said, “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 includes five key drivers:

  1. Win with product — focused on expanding in large, growing worldwide markets where the brands resonate with consumers.
  • Win with consumer engagement – Drive digital-first, partner with industry creatives, and build out each brand’s ambassador program, to meet consumers on their terms.
  • Win in the digitally-led marketplace – Accelerating digital growth by building a distribution strategy for Calvin Klein and Tommy Hilfiger and supported by wholesale partners.
  • Develop a demand and data-driven operating model – Puts consumerS first and leverage data to bring new products to market with speed and agility.
  • Drive efficiencies and invest in growth – Be more cost-competitive and reinvest in strategic growth drivers.

Zac Coughlin, CFO, 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 PVH+ Plan is expected to achieve the following financial objectives:

  1. 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 percent-plus CAGR in digital channels; DTC brick-and-mortar outpacing wholesale brick-and-mortar.
  2. The operating margin is expected to expand to approximately 15 percent in 2025
  3. Free cash flow is expected to be over $1.0 billion in 2025.

2022 Outlook
The company reaffirmed its first-quarter and full-year 2022 outlook announced on March 29, 2022.

Stock Repurchase Program
On April 11, 2022, its Board of Directors, through its Executive Committee, approved a $1.0 billion increase to the company’s stock rep.

PVH also owns Olga and Warner’s intimates brands.

Photo courtesy Calvin Klein