Table of contents
PVH Corporation is one of the best global-level lifestyle companies with around 27.000 members working in over 40 countries. The company generated a total revenue of $9,024 billion in 2022, $2,158 billion in the first quarter of 2023, and $2,207 billion in the second quarter of 2023.
In the year 2022, Europe (including Africa and the Middle East) provided 47% of the company’s revenue, followed by the US at 32%, the Asia Pacific region at 17%, and the Americas (excluding the US) at 4%. The wholesale channel accounted for 52% while retail captured 43%, and licensing and others held 5% of the total sales.
Q1 2023 had a 2% revenue growth, an 8% climb in direct-to-consumer revenue, and a 2% decline in wholesale sales. The directly-operated digital commerce showed a 4% rise with the total digital revenue falling by 3%. In total turnover, the digital penetration was around 20%.
In Q2 2023, the revenue had grown by 4% on a year-to-year basis with an 11% increase in direct-to-consumer revenue and a 3% decrease in wholesale sales. When it comes to the directly-operated digital commerce, the turnover appears to be having a 12% surge with a 10% fall in total digital sales. The digital penetration was the same as the previous quarter of the year.
The company openly agrees to the fact that it is using a roadmap known as PVH+ Plan to organise its growth in digital, brand, and direct-to-consumer channels. With this plan, the company is able to set up a new pathway on profitability, sustainability, and brand-driven rise, mainly focusing on the two main brands - Calvin Klein and Tommy Hilfiger.
Tommy Hilfiger
2022 is the year when Tommy Hilfiger returned to New York Fashion Week. It hosted a show in reality and in metaverse. For the event in metaverse, the brand invited several NFT and gaming influencers to attend. The show later became the second “most talked about shows in New York.” Attended by celebrity guests, the multiverse Tommy Factory gave a unique runway experience with the launch of Tommy Monogram. The event got the brand worldwide visibility with “American,” “inclusivity,” and “sustainable” as the major keywords. Tommy Hilfiger paced a continual rate of driving the momentum with its pop-culture network. For example, it released “Classic Reborn” with the singer Shawn Mendes. With the support of innovations in the digital world, Tommy Hilfiger boosted its consumers’ touchpoints. The company also upgraded its sustainable strategy by sourcing 70% of its materials in an organic way in 2022 and by releasing TOMMY HILGIER Fashion Frontier Challenge’s 4th edition which assists in providing creative ideas to make the fashion sector broader.
The label spent $235 million on the global communications and marketing department in 2022 with a major portion for digital media. It follows 360° marketing with a significant focus on collaborations and capsule collections combined with creative experiences and digital marketing strategies.
The worldwide retail revenue of products sold under Tommy Hilfiger brands (TOMMY HILFIGER and TOMMY JEANS) was $9,1 billion in 2022. It holds 52% of the overall revenue. The brand is supported by over 16.000 associates in 100 countries and over 2.000 retail stores.
Tommy Hilfiger has acquired $1,124 billion, up by 5% year-to-year, in Q1 2023. The sales of Tommy Hilfiger International have grown by 3% and Tommy Hilfiger North America by 11%. In Q2 2023, its turnover was $1,139 billion, gaining by 6%, with an upsurge of 6% in International and 4% in North America.
Calvin Klein
While considering the year 2022, Calvin Klein had its focus fixed on establishing elevated brand marketing with symbolic products and culturally appropriate designs. Beginning with intimate wear, it changed its brand perspective and the entire look with seasonal colours, new shapes, and sustainable fabrics. Then, it launched various collaborations such as CK1 Palace with Palace. Over the years, Calvin Klein has been very clear in using influencer marketing for its strategy. The underwear campaign, Calvins or Nothing featured Jennie Kim, Antonee Robinson, Maya Hawke, Romelu Lukaku, Trent Alexander-Arnold, Richarlison, Carlos Alcaraz, Kai Havertz, and Virgil Van Dijk. This content went viral on TikTok and created record-breaking numbers on Instagram and Twitter.
Calvin Klein’s brands include CK Calvin Klein, Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance. The company has spent $355 million on the promotion, marketing, and advertising of the brands, with a major part dedicated to digital media of which around 35% of the spending is provided by the licensees and others, in 2022. The brands of Calvin Klein have earned positive results in maintaining relevance in cultural change.
The Global sales of retail of Calvin Klein accounted for $9,3 billion in 2022. In the company’s overall revenue, Calvin Klein contributed 42%.
In the first quarter of 2023, Calvin Klein earned $887,7 million with a 3% growth on a constant rate. The revenue of Calvin Klein International had an increase of 7%, whereas Calvin Klein North America faced a 12% decrease with constant growth in direct-to-consumer business more than the wholesale business’ drop.
Finally, the turnover of Calvin Klein totaled $2,207 billion in the second quarter of 2023, boosting by 2% at a constant rate. Calvin Klein International hiked its revenue by 11% and Calvin Klein North America faced a 9% decline due to the wholesale channel’s cutback.
Heritage Brands
The heritage brands of the PVH Corporation consist of sourcing, designing, and promoting women’s intimate wear under Warner’s and True&Co., male underwear under Nike, neckwear and dress shirts under Van Heusen, and many more. These brands contributed over 6% of total revenue and generated a global retail sales of $1,8 billion in 2022.
Compared to the same periods of the previous year, Heritage Brands’ revenue was reduced by 12% to $145,9 million in the first quarter of 2023 and by 11% to $127,6 million in the second quarter of 2023.
Cover Image: Jungkook in Calvin Klein's New Campaign. courtesy Calvin Klein Twitter Page