Our Company > Business Groups

We leverage our best-in-class global infrastructure, supply chain, brand-focused management and marketing teams to support each of our three business groups — Calvin Klein, Tommy Hilfiger and Heritage Brands — through a strategic combination of wholesale, retail, e-commerce and licensing operations.

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Calvin Klein

With global retail sales of approximately $8.1 billion in 2014, Calvin Klein is one of the best known designer names in the world, offering provocative, modern designs.


Our products are distributed through our wholesale partners and through over 2,700 retail locations (including company operated, licensee and franchisee stores) across the world. Within the Calvin Klein brand portfolio, Calvin Klein Collection acts as a halo brand and offers inspiration to the other brands, which include Calvin Klein (platinum label), which is our “bridge” line, Calvin Klein (white label), which is our “better” line, Calvin Klein Underwear and Calvin Klein Jeans. Calvin Klein products are available through our wholesale customers (third party retailers, distributors and pure play e-tailers which sell our products in brick and mortar stores and mobile and online e-commerce sites), at our own company-operated retail locations across the world, and online through our own mobile and e-commerce websites in the United States, Europe, Brazil and China. In 2015, we expect to launch directly operated e-commerce sites in Canada, Hong Kong and Macau; we plan to operate e-commerce sites in 20 markets by the end of 2016. Additionally, in certain markets, our products are distributed through licensees (including joint ventures), franchisees and distributors.

  Global Store Count


Global Store Count

NORTH AMERICA†† TOTAL STORES: ~195
EUROPE††† TOTAL STORES: ~830
LATIN AMERICA†††† TOTAL STORES: ~100
ASIA††††† TOTAL STORES: ~1,600

Store Counts as of February 1, 2015.
††Includes the U.S., Canada and Mexico.
†††Includes the Middle East and Africa. Includes concession and franchisee locations.
††††Includes Central and South America and the Caribbean. Includes franchisee locations.
†††††Includes Australia and New Zealand. Includes concession, franchisee and licensee locations.

Business Structure and Overview

Our Calvin Klein business consists of two reportable segments; (i) Calvin Klein North America – which includes all of our wholesale, retail, e-commerce and licensing operations for the brand in North America and (ii) Calvin Klein International – which includes all of our wholesale, retail, e-commerce and licensing operations for the brand in Asia, Europe and Latin America.

  Calvin Klein Organization Chart

  Calvin Klein North America

Calvin Klein North America

Our North American operations, which include revenues generated in the United States, Canada and Mexico, accounted for approximately 55% of our Calvin Klein reported revenues in 2014. Product categories that are distributed in North America include men’s and women’s sportswear, jeanswear, outerwear, performancewear, fragrance, underwear and intimates, as well as men’s dress furnishings. Products are sold by us and our licensing partners, through the wholesale channel, through our own network of retail stores, which are primarily located in premium outlet centers, and through e-commerce operations.

Wholesale

Wholesale accounted for approximately 55% of Calvin Klein’s North America sales in 2014. The wholesale channel is an important component of our business mix and how we communicate our brand messaging and positioning to customers. Accordingly, we partner with our wholesale customers to ensure that shop-in-shops, fixturing, marketing and customer service levels meet our standards given our premium brand positioning. Our wholesale customer base includes retailers such as Macy’s, Lord & Taylor, Dillard’s, Hudson’s Bay (Canada) and Liverpool (Mexico), through which our products are available in stores and online

Retail

Retail accounted for approximately 45% of Calvin Klein’s North America sales in 2014. Our retail operations include approximately 195 stores, primarily located in premium outlet centers, as well as our U.S. e-commerce site and our Calvin Klein Collection retail flagship store on Madison Avenue in New York City. Our outlet stores mainly offer men’s and women’s apparel and accessories made specifically for the channel, which is designed by our team in New York. Recently, we opened several Calvin Klein Underwear stores in premium outlet malls across the country. Additionally, we have opened several Calvin Klein Accessories outlet and full price stores, which offer handbags and footwear, as well as small leather goods and other accessories.

  Calvin Klein International

Calvin Klein International

Our international operations accounted for approximately 45% of our Calvin Klein business’ 2014 reported revenues (including revenues generated in Asia, Europe and Latin America). Our penetration in Asia and Latin America has increased significantly following our acquisition of Warnaco in 2013, with reported revenues from the two regions growing from 9% of total Calvin Klein revenues in 2012 to approximately 25% in 2014. Internationally, our products are sold through the wholesale channel; our own network of retail locations (including concessions) under the brand names Calvin Klein Jeans, Calvin Klein Underwear, Calvin Klein Performance and Calvin Klein (platinum label); and licensee stores under the brand names Calvin Klein Collection, Calvin Klein (platinum label), Calvin Klein Performance and Calvin Klein Watch & Jewelry. Product assortments that are distributed internationally primarily include men’s and women’s jeanswear, underwear and accessories.

Asia

Calvin Klein’s Asian operations accounted for approximately 20% of Calvin Klein’s reported revenues in 2014. Our regional headquarters is located in Hong Kong, and we have commercial teams based in Shanghai and Seoul and satellite offices in Tokyo, Taiwan and Singapore, to support our business in major markets such as China, South Korea and Southeast Asia. We also own an interest in joint ventures in India and Oceana (which encompasses Australia, New Zealand and other island nations in the South Pacific). In these countries, we sell Calvin Klein jeanswear, underwear, performance apparel, accessories and Calvin Klein (white label), which is in Australia and India only, primarily through the retail channel, which includes concessions, shop-in-shops, retail stores (both full price and outlet) and travel retail locations, which are located in major international airports. Our retail portfolio includes approximately 250 company-operated retail stores and approximately 365 concessions. Additionally, we operate a wholesale business, through which we primarily sell our products to distributors and franchisees (currently approximately 1,000 doors), and in certain markets, including Japan and South Korea, we have a significant department store presence. E-commerce is another key focus area; we launched a Tmall web store in China in 2014, a Calvin Klein directly operated website in China in early 2015 and we expect to launch e-commerce in Hong Kong and Macau in late 2015.

As this region continues to expand and become a larger component of our growth profile, we have been investing in talent and infrastructure to support our growing business needs.

Europe

Calvin Klein’s European business accounted for 20% of Calvin Klein’s reported revenues in 2014, with the largest operations currently in Southern Europe. In these countries, we sell Calvin Klein jeanswear, underwear and accessories, and a limited selection of men’s Calvin Klein (platinum label) apparel (primarily dress furnishings). Our store base includes approximately 145 retail stores (full price and outlet locations), approximately 570 concessions and approximately 115 franchisee stores. We also operate e-commerce sites across Europe, which have the capacity to ship to 14 countries.

We are currently focused on turning around the European operations, as Europe is the lowest performing region for Calvin Klein, and we are committed to improving margins and generating healthier and more profitable sales. The largest Calvin Klein product offerings in the region include Calvin Klein Underwear, which is performing well, and Calvin Klein Jeans, which is going through a repositioning in the marketplace. We are working to improve jeanswear performance by upgrading product design, denim washes and quality. We also focused on our store and shop-in-shop presence by introducing newly developed store environments and enhancing existing locations by improving fixtures and updating in-store marketing. At the same time, we worked to improve distribution and close locations that were not brand-enhancing.

Along with these measures, we have been investing in talent, creating regionally based teams to focus on design and merchandising for Europe, and we are leveraging our established back-office operations that previously serviced only Tommy Hilfiger’s European operations. With these actions as a foundation, we are also investing in the business in the areas of supply chain, systems and shop and store environments, which includes renovations, fixtures, signage and in-store marketing and merchandising. We expect that these investments will pay dividends for our business and pave the way for the business to return to healthier levels of profitability.

Latin America

Calvin Klein’s Latin America business, which consists primarily of our directly controlled operations in Brazil, accounted for approximately 6% of Calvin Klein’s reported revenues in 2014. We primarily distribute Calvin Klein products through the wholesale channel, a limited number of retail stores and our e-commerce site, which was launched in late 2014. Products sold include Calvin Klein jeanswear, sportswear, accessories, underwear and related products. We also see a notable opportunity to expand the Calvin Klein (white label) “better” apparel and accessories distribution in the region. Outside of Brazil, we have been expanding throughout South America with American Designer Fashions, our distributor in the region and an affiliate of Tommy Hilfiger.

  Licensing

Licensing

Calvin Klein has approximately 65 licensing and similar arrangements worldwide with third parties for use of the Calvin Klein brands for a broad array of products, including women’s dresses and suits, men’s tailored clothing, women’s sportswear and performance apparel, golf apparel, fragrances, cosmetics, eyewear, hosiery, socks, footwear, jewelry, watches, outerwear, handbags, small leather goods and home furnishings; and men’s and women’s Calvin Klein (platinum label) apparel in Asia. Licensing revenues are included in the region in which they are realized.

Licensing continues to be a significant component of Calvin Klein’s business, as approximately 57% of the brand’s global retail sales were generated from licensed businesses in 2014. Calvin Klein’s two largest third-party licensees in terms of 2014 global retail sales are:

  • Coty, Inc., our fragrance licensee, which generated approximately $1.4 billion in global retail sales in 2014. Calvin Klein is one of the top four designer fragrance brands in Europe and the U.S.
  • G-III Apparel Group, Ltd., which generated approximately $1.4 billion in global retail sales in 2014 (primarily in North America) selling men’s and women’s coats; women’s better suits, dresses, sportswear, active performance wear; handbags and luggage under the Calvin Klein (white label) brand.

Tommy Hilfiger

With global retail sales of approximately $6.7 billion in 2014, Tommy Hilfiger, which is distributed in over 90 countries, is a global designer lifestyle brand.

Tommy Hilfiger’s essence is its classic American cool design heritage, and it occupies a distinct position as an aspirational, yet accessible, premium brand. Tommy Hilfiger offers a wide range of high-quality apparel, accessories and lifestyle products to a diverse consumer following. We design and market the Tommy Hilfiger, Tommy Hilfiger Tailored, Hilfiger Denim and Hilfiger Collection brands and distribute them through the wholesale, retail and e-commerce channels (through our own sites, as well as those operated by third party retailers, distributors and pure play e-tailers). We also license the Tommy Hilfiger brands for an assortment of premium lifestyle products and in various countries and regions. Tommy Hilfiger products are available through our wholesale operations, e-commerce websites, and our retail locations in North America, Europe, and Japan; they are also distributed in North America, Europe, Asia and Latin America through licensees, joint ventures, franchisees and distributors.

  Global Store Count


Global Store Count

NORTH AMERICA†† TOTAL STORES: ~230
EUROPE††† TOTAL STORES: ~750
LATIN AMERICA†††† TOTAL STORES: ~200
ASIA††††† TOTAL STORES: ~520

Store Counts as of February 1, 2015.
††Includes the U.S. & Canada.
†††Includes the Middle East and Africa. Includes concession locations and franchisee and distributor stores.
††††Includes Central and South America, Mexico and the Caribbean. All locations are licensee stores.
†††††Includes Australia and New Zealand. Includes licensee, franchisee and concession stores.

Business Structure and Overview

Our Tommy Hilfiger business consists of two reporting segments; (i) Tommy Hilfiger North America – which includes all of our wholesale, retail, e-commerce and licensing operations under the brand in North America and (ii) Tommy Hilfiger International – which includes all of our wholesale, retail, e-commerce and licensing operations under the brand in Europe, Asia and Latin America.

  Tommy Hilfiger Organization Chart

  Tommy Hilfiger North America

Tommy Hilfiger North America

Tommy Hilfiger North America accounted for approximately 45% of Tommy Hilfiger’s reported revenues in 2014. This includes revenues generated from the wholesale channel, through our own retail stores, through our company-operated e-commerce site and through licensing agreements.

Retail

Retail accounts for over 70% of Tommy Hilfiger’s North American sales. This consists principally of sales generated from approximately 230 stores in the United States and Canada. Our store base includes flagships, which are our largest stores carrying the full range of Tommy Hilfiger apparel and accessories, and are situated in high-profile locations in major cities that enhance the positioning and exposure of the brand; anchor stores, which are located on high-traffic retail streets; and company stores, which are primarily located in premium outlet centers and carry specially designed merchandise at a lower price point than our other stores. Additionally, we generate sales from our website, www.tommy.com, which acts as an effective brand marketing tool and an e-commerce platform.

Wholesale

Our wholesale business represents approximately 30% of North American sales. Macy’s is the exclusive department store retailer (including online) for Tommy Hilfiger men’s and women’s sportswear in the United States and, in Canada, we primarily sell our products in Hudson’s Bay stores and on their e-commerce site. We view Macy’s and Hudson’s Bay as key partners in further shaping our North American sportswear strategy, and we are continually expanding the brand’s presence in top doors at both department stores, maximizing sales of key items and upgrading the in-store experience by creating clear and impactful store presentations. We also license certain lifestyle product categories including eyewear, watches, fragrance and home furnishings, which are also sold at Macy’s and Hudson’s Bay, as well as through other retailers.

  Tommy Hilfiger International

Tommy Hilfiger International

Tommy Hilfiger International accounted for approximately 55% of the business’ reported revenues in 2014. Products are sold by us through the wholesale and retail channels in Europe and Japan; through joint ventures in China, India, Brazil, Australia and New Zealand; and by third party distributors, licensees and franchisees in Europe, Latin America and Asia. We also operate e-commerce sites in Europe, Brazil, Mexico, Japan and China.

Europe

Tommy Hilfiger has well-established operations in Europe that accounted for approximately 50% of Tommy Hilfiger’s reported revenues in 2014. The largest operations are in Northern and Central Europe, which represent over 70% of Tommy Hilfiger’s reported revenues in the region.

Across Europe, Tommy Hilfiger products are primarily sold through the wholesale channel, which represents over 60% of sales – with customers ranging from large department stores to small independent stores. There are also over 600 retail stores (of which approximately 45% are company-operated, while the remainder is franchisee and distributor stores) and approximately 150 concession locations. Our company-operated store base in Europe consists of full price and outlet stores. Tommy Hilfiger’s e-commerce operations are well-developed in Europe. In 2014, our directly operated European e-commerce sites generated over $70 million in revenues and they have the potential to ship to over 30 countries. Looking ahead, we see the largest potential to open additional retail locations in the Middle East and Africa (which is included within our European operations).

Asia

With the exception of our Japanese operations, we license Tommy Hilfiger to third parties or joint ventures throughout Asia. We have entered various joint venture agreements in high-growth markets including China (August 2011), India (September 2011) and Australia and New Zealand (February 2015). Additionally, we conduct business across Southeast Asia through third-party licensees. In the aggregate, the Asia businesses (excluding Japan) generated retail sales of approximately $500 million.

In Japan, we operate a store base of approximately 160 locations. We are working to turn around this business due to recent underperformance. This includes upgrading the product to align more closely with Tommy Hilfiger’s premium position globally and closing TOMMY, an unprofitable and brand inconsistent youth-oriented business. We are starting to see early positive signs from our investments and we look forward to seeing further improvement in the underlying business in the years ahead.

Latin America

Our Latin America operations are showing continued momentum. Revenues in the region are primarily generated in Panama, Mexico and Brazil, where we have a joint venture with a local partner that was established in January 2013. We believe that Brazil is our largest underpenetrated market opportunity in the region and, over the next several years, we plan to expand our presence significantly in the country through our joint venture. Tommy Hilfiger’s store base includes approximately 200 full-price and outlet store locations in the region.


Heritage Brands

With 2014 reported revenues of approximately $1.8 billion, our Heritage Brands business encompasses the design, sourcing and marketing of a varied selection of branded label dress shirts, neckwear, sportswear, swim products and intimate apparel under our Van Heusen, IZOD, ARROW, Speedo1, Warner’s and Olga brands, and trademarks we license from third parties. We also license our owned heritage brands for an assortment of products. We distribute our Heritage Brands products at wholesale, through our own Van Heusen retail stores, which are primarily in North America, and online through www.SpeedoUSA.com as well as e-commerce sites operated by key wholesale partners and pure-play e-commerce retailers.

Heritage Brands Business Structure and Overview

Our Heritage Brands business is comprised of several category offerings, which include:

  Heritage Brands Organization Chart

  Heritage Brands Categories

Dress Furnishings

Our Dress Furnishings business principally consists of the design and marketing of men’s dress shirts and neckwear. We market both dress shirts and neckwear under brands including Van Heusen, ARROW, IZOD, Eagle, Donald J. Trump Signature Collection, Kenneth Cole New York, Kenneth Cole Reaction, J. Garcia, Ike Behar, MICHAEL Michael Kors and Michael Kors Collection. We also market dress shirts under the Geoffrey Beene, Chaps and Ryan Seacrest brands and neckwear under the Nautica, Ted Baker and Claiborne brands, plus an array of other licensed and private label brands, which comprise approximately 25% of our neckwear business revenues. These offerings are primarily sold to department, mid-tier department, chain and specialty stores. To a lesser degree, our products are sold in mass market stores and higher-end department stores, such as Neiman Marcus, Nordstrom and Saks Fifth Avenue. Collectively, our product offerings represent a sizeable portion of the domestic dress furnishings market, as we have greater than 50% market share in neckwear and approximately 41% market share in dress shirts based on our percentage of 2014 unit volume in U.S. Department and Chain Stores combined. Recently, we have been focused on adding innovation and performance features to our products, including the launch of the Van Heusen Flex Collar shirt for Fall 2015.

Sportswear

Our Heritage Brands segment also includes the design and marketing of sportswear, including men’s knit and woven sport shirts, sweaters, bottoms and outerwear at wholesale, principally under the IZOD, Van Heusen and ARROW brands. Our products are primarily sold to department, mid-tier department, chain, specialty, mass market, club and off-price stores, although we also operate approximately 185 Van Heusen retail stores, which are primarily located in outlet malls in the U.S. and Canada. While we continually look to close select underperforming Van Heusen stores as leases come due, we plan to operate Van Heusen retail as a complement to the brand’s wholesale operations and leverage its resources across the business, which will help improve the brand’s productivity. We have implemented strategic initiatives to help improve performance, including new customer analytics tools, which will help us communicate with and engage our consumers more effectively. Additionally, we are beginning to test multi-brand outlet stores, which offer a mix of our heritage brands products within one storefront, to leverage our real estate and cater to consumers’ various product needs.

Swimwear

We design, manufacture and sell men’s, women’s and children’s swimwear, footwear and swim products such as swim goggles, learn-to-swim aids, water-based fitness products and training accessories under the Speedo brand. Products are distributed in the United States, Canada, Mexico and the Caribbean through all major distribution channels, sporting goods stores, team dealers, catalog retailers and the www.SpeedoUSA.com website.

Underwear / Core Intimates

Our underwear and core intimates offerings include underwear under the Michael Kors and IZOD brands and intimate apparel, shapewear and loungewear under the Warner’s and Olga brands. Our objective is to leverage core competencies and best practices from across the PVH organization to enhance our products and assortments. This includes leveraging Calvin Klein Underwear’s strong expertise in product, packaging and marketing, as well as capitalizing on Warner’s foundation in bras (particularly wire-free) and Olga’s focus on fuller-figure sizing. Our underwear and intimates offerings are sold across a variety of retail channels, including department, chain and mass market stores.


1The Speedo brand is licensed for North America and the Caribbean in perpetuity from Speedo International, Limited.

Global Growth

We are a company transformed, focused on continued global growth of our world-renowned designer lifestyle brands. By leveraging our best-in-class platforms, which encompass wholesale, retail, e-commerce and licensing operations, we seek to further penetrate our iconic lifestyle brands across new categories, existing markets and new markets. We believe that we have multiple growth opportunities driving worldwide retail sales of our Calvin Klein, Tommy Hilfiger and Heritage Brands businesses.

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Our Brands

We grow global brands. PVH leverages a diversified portfolio of brands – including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Speedo, Warner’s and Olga — and markets them globally. Our operational expertise, dedicated team of associates and leaders, and commitment to each brand's core values, allow us to gain market share as we pursue new markets and product categories globally.

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