Dear fellow stockholders
As we contemplate our Company's performance in 2008 and look ahead to our future in 2009 and beyond, it is reassuring to recognize that Phillips-Van Heusen was founded over 125 years ago. So when we hear that the current economic environment is one of the most difficult since the 1930s, PVH can look to its own history - and those of many of its brands - for perspective and guidance. There is a reason our business has stood the test of time and weathered dozens of economic cycles. We have a heritage of providing our customers with value and quality and a business designed to adapt and respond to changing market conditions.
In the fourth quarter of 2008, the impact of negatives macroeconomic trends on our business became more pronounced. Our Company has been and continues to be negatively affected by the downturn in consumer confidence and the resulting decline in consumer spending, but we are being pro-active in our response.
We are focused on meeting the challenges of these difficult times by leveraging our strengths. We must maintain and enhance the strength of our global brands, employ the full potential of our multi-channel distribution strategy and take advantage of the efficiency of our supporting infrastructure. We must continue to stay connected with consumers by investing in our marketing efforts. We must manage our capital structure with a view towards long term stability and investment in growth opportunities. And we must tighten our belts to ensure that our operations, processes and work force are primed for maximum productivity and profitability. All of this requires disciplined management, realistic objectives and the willingness to make difficult decisions, things we have.
Emanuel Chirico
Chairman & Chief Executive Office
A dynamic infrastructure leveraged against world-class brands. It’s the power of PVH.
A diverse business model
Our multiple brand, multiple channel, multiple price point strategy is designed to extend the reach of PVH, by taking advantage of appropriate opportunities to grow market share, while providing stability should market trends shift. Underlying this strategy is a dynamic infrastructure that supports the broad base of our operating businesses in an efficient manner.
