We are a company transformed, focused on continued global growth of our world-renowned designer lifestyle brands.
During 2013, we grew our revenues and earnings before interest and taxes, as our strong brand positioning and execution of our business strategies drove our financial performance, despite the uncertain macroeconomic environment and the significant strategic investments we have needed to make in upgrading and stabilizing the acquired Calvin Klein businesses. Our revenue growth in 2013 was primarily driven by the addition of the Warnaco businesses, as well as revenue growth in the Tommy Hilfiger and Calvin Klein businesses we already operated, which helped offset weakness in our Heritage Brands business, particularly within the retail segment.
While we expect slight revenue growth in 2014, we will continue to reinvest profits in the acquired businesses and we are optimistic about our long-term prospects, with revenue growth expected to accelerate in 2015. Our global growth strategy continues to focus on leveraging our regional operating platforms, which encompass wholesale, retail, e-commerce and licensing operations, in order to further penetrate our iconic lifestyle brands across new categories, existing markets, new markets and multiple demographics. The strength of our brands and the opportunities created through the acquisition of Warnaco, coupled with the sound execution of our business strategies, should enable us to continue to drive our long-term growth and deliver improved financial returns. We believe that these opportunities will drive retail sales of our Calvin Klein, Tommy Hilfiger and Heritage Brands businesses from approximately $18 billion in 2013 to approximately $24 billion by 2017, and that we will generate healthy earnings per share growth in the next few years.
We expect that a significant portion of our growth will be generated from our international operations, which are becoming an increasingly large and important component of our sales and operating profit and long-term growth profile. Over the last few years, PVH has truly become a global lifestyle apparel company, with non-domestic revenues growing to over 45% of our revenues in 2013 from 11% in 2009. As we look ahead, while we have already accomplished significant growth overseas to date, we believe that there is substantial revenue potential to unlock, particularly in emerging markets such as China and Brazil, over the next few years.
Our key strategies by brand include:
Since our acquisition of Calvin Klein in 2003, global retail sales of Calvin Klein products have grown at an 11% compound annual growth rate. Significant growth opportunities exist to drive Calvin Klein global retail sales from $7.8 billion in 2013 to over $10.5 billion over the next few years. These key opportunities include:
Continued Growth Within Our North American Business
In 2013, Calvin Klein North America generated approximately $4.4 billion in retail sales. Our products are distributed through the wholesale channel, our approximately 160 retail stores, which are principally located in premium outlet centers, and through our U.S. e-commerce site.
We are implementing initiatives across the wholesale channel to help increase our market share and improve our products, our brand positioning and our distribution. Our key initiatives include:
- Gaining market share as we expand our presence in top wholesale doors;
- Elevating our offerings through quality upgrades, enhanced detailing and innovation;
- Entering new categories and focusing on notable category expansion opportunities such as logo and performance product within sportswear; and
- Improving shop performance through focused merchandising and marketing initiatives and investing in point-of-sale marketing and in-store coordinators.
One of our top priorities is to reposition our jeanswear business. Specific initiatives for jeanswear include:
- Reducing the brand’s distribution in the off-price and club channels;
- Re-establishing the brand’s premium designer jeans positioning, with a focus on elevated design and quality;
- Recapturing top doors within the major North American department store chains; and
- Placing a greater focus on key items to gain traction with customers.
While our underwear business is solid, we have identified several initiatives to drive sales and margin growth, including:
- Elevating our women’s intimate apparel product with design, detailing and quality enhancements;
- Adding extended women’s sizing and using fit focus groups to generate feedback on size offerings;
- Upgrading our product packaging to appropriately represent the Calvin Klein brand and design aesthetic;
- Expanding the merchandise coordinator program; and
- Improving the in-store presentation and shopping experience in our own stores and shop-in-shops at our wholesale customers.
Our retail business continues to experience solid performance and is focused on driving comparable store sales growth and store productivity, while adding square footage growth. Specific target areas to continue our trajectory and outperformance in the retail channel include:
- Expanding Calvin Klein’s store base within premium outlet centers across the United States, Canada and Mexico;
- Improving productivity of key product categories and replenishment businesses;
- Maximizing sales through capital investments in top locations;
- Utilizing in-store technology to engage the consumer;
- Maximizing Calvin Klein Accessory store growth based on encouraging results from our initial store openings in 2012 and 2013;
- Better leveraging the global supply chain to drive speed-to-market, as well as efficiencies across the larger North American organization; and
- Investing in e-commerce and positioning it as a North American flagship store to bridge all of our product categories and licensee products.
Strategic Repositioning of the European Business
Our acquisition of Warnaco provided us with direct ownership of Calvin Klein’s European operations, which generated approximately $1.6 billion in retail sales in 2013. With direct control over these operations, we are restructuring the business across the region with the objective of improving margins, generating healthier and more profitable sales and improving the image and sustainability of the Calvin Klein brand. In order to successfully reposition the European business, we plan to implement several strategic initiatives including:
- Providing brand-right product across jeanswear, which includes upgrading the design and quality of the product while tailoring product to local customer tastes and retailer needs;
- Further optimizing our distribution base, which includes exiting wholesale accounts that are not brand-enhancing, rationalizing the off-price and club business and closing retail stores that are either unprofitable or are not brand-appropriate locations. This is an ongoing process that commenced in 2013;
- Winning new wholesale customers as our product, particularly in jeanswear, improves;
- Investing in our supply chain to better support and meet local market needs;
- Opening state-of-the-art showrooms in key markets to communicate the brand’s aesthetic and lifestyle message to press and retailers;
- Investing in shop-in-shops and retail stores as we seek to elevate the in-store shopping experience for the Calvin Klein customer, at both wholesale and retail;
- Introducing Calvin Klein (platinum label) apparel and accessories into the market, beginning with a tailored menswear launch in Fall 2014;
- Improving the functionality of our replenishment businesses and inventory management for underwear and intimates; and
- Upgrading and elevating our women’s intimates assortments with improved design, fits, detailing and quality.
Continuing to Drive Solid Operating Performance in Asia
With approximately $1.5 billion in retail sales in 2013, Asia represents one of the highest growth regions for the Calvin Klein brand. We anticipate that Asia will continue to deliver robust sales and margin potential as we expand in key markets such as China, Korea and Southeast Asia, and as we realize operating efficiencies. Investment initiatives to drive brand momentum in Asia include:
- Within jeanswear, elevating product assortments through enhanced design and quality, and also introducing local market fits;
- Expanding product assortments beyond jeanswear and underwear in each market within existing distribution and adding new distribution;
- Growing our platinum label apparel business by offering existing and additional product categories that are brand-right to reflect Calvin Klein’s modern design aesthetic and tailored to meet the local consumer preferences;
- Increasing our focus on the retail organization and how it is run, with new investments in planning and allocation tools and markdown optimization;
- Continued focus on the global supply chain, including improved speed-to-market, operating efficiencies and innovation in fabrics and product;
- Upgrading systems and technologies to facilitate regional market needs to better support this high growth region and the future opportunities for the region;
- Launching new store designs for 2014 to communicate the brand’s sleek and modern American design positioning and better showcase our apparel and accessory offerings;
- Strategically optimizing the retail presence;
- Expansion within travel retail locations in key international airports;
- Upgrading and elevating our women’s intimates assortments with improved design, fits, detailing and quality;
- Improving the functionality of our replenishment businesses and inventory management;
- Introducing e-commerce operations in Hong Kong, China and the Central and Southeast Asia-Pacific region in 2015; and
- Continuing to expand our business through our joint ventures in India and Australia.
Latin America Represents One of Calvin Klein's Largest Growth Opportunities
While Calvin Klein’s Latin America operations, primarily Brazil, have grown rapidly over the last few years, posting over $300 million in retail sales, they are still in the infancy stage in this region. This region remains highly underpenetrated and offers significant opportunities for future growth. Key initiatives for continued brand momentum in Latin America include:
- Continued focus on our jeanswear, including enhanced design and quality;
- Growing the underwear business through better and more regionalized design and sourcing, as well as by improving our replenishment categories. Also, we plan to upgrade women’s intimates, improving the design, fits, styles and quality of our offerings by providing brand-right product tailored to local consumer tastes;
- Introducing and developing the accessories category in Latin America, including footwear, handbags and small leather goods, which we believe will perform well given our strong and growing brand acceptance and recognition in the region;
- In Brazil, we are expanding Calvin Klein (white label) product offerings, which were introduced to the region in January 2014 through a soft launch, which has been met with success;
- Outside of Brazil, we are expanding Calvin Klein (white label), jeanswear and underwear, which will be distributed under a recent agreement with American Designer Fashion (announced in May 2014);
- Consistently elevating our brand image through improved wholesale presentations;
- Growing our outlet business through several new store openings and expanding made-for-outlet product, which typically generates higher margins;
- Improving the consumer experience at retail through in-store marketing, customer service initiatives, investments in fixturing and overall improved in-store product presentation;
- Focusing on operational excellence, such as inventory management;
- Developing a specific marketing strategy for Brazil, as this is the largest underpenetrated country in Latin America; and
- Introducing e-commerce operations in Brazil in late 2014.
Continued Expansion of Our Licensing Business
Calvin Klein’s licensing business is an important aspect of the brand, as licensed products currently represent approximately 55% of global retail sales. Our key objectives within licensing include:
- Continuing to work with Coty as a key strategic partner for our existing fragrance offerings and to develop and launch new fragrances, including the new Reveal fragrance;
- Adding incremental marketing campaigns for select high-profile fragrance products to generate increased awareness;
- Working with G-III to maintain and accelerate the current momentum that we are seeing across their licensed product categories, including men’s and women’s outerwear, women’s sportswear, dresses, suits, performance apparel and handbags, as well as luggage;
- Working with Club 21 to grow the Calvin Klein (platinum label) apparel business in Asia by offering assortments that are brand-right to reflect Calvin Klein’s modern design aesthetic and tailored to meet the local customer’s preferences; and
- Collaborating with our licensees to introduce new accessory items that complement our existing assortments, including watches, jewelry, eyewear and footwear, which reflect current fashion trends.
Growth of E-Commerce Business
E-commerce is a significant focus area for Calvin Klein, as it is another touchpoint for us to convey the brand aesthetic, develop the Calvin Klein lifestyle and sell our products. Current initiatives include:
- Improving and expanding our e-commerce business through technology and marketing investments;
- Revamping our U.S. e-commerce website to better communicate our brand aesthetic and showcase our products, with Calvin Klein (platinum label) and Calvin Klein Collection to be added over time;
- Adding a distinct section on the U.S. website for outlet / liquidation product; and
- Launching new e-commerce sites across the world, including Europe (August 2014), Brazil (second half of 2014), Canada, China, Central and Southeast Asia-Pacific (CSAP), Hong Kong and Mexico (2015), and Korea (2016).
Since Tommy Hilfiger has been under our ownership, the brand’s growth and performance has far exceeded our expectations, posting approximately $6.4 billion in global retail sales in 2013. Tommy Hilfiger continues to demonstrate its power as a truly iconic global designer lifestyle brand overseen by a strong management team that has built a robust European operating platform and distribution network. We continue to be pleased with the business' performance, cash flow generation and growth prospects.
Since 2005, the Tommy Hilfiger management team has driven the growth of the brand’s global retail sales at a 12% compound annual growth rate, through a focused expansion in Europe and Asia, by repositioning the brand in North America and by further penetrating its licensed regions and product categories. Looking ahead, we believe the brand should achieve 8% to 10% annual global retail sales growth by capitalizing on our investments in existing and new product categories, distribution channels and geographic regions, which should drive Tommy Hilfiger’s $6.4 billion in global retail sales in 2013 to approximately $9.0 billion within the next few years. Our key growth strategies include:
Continuing to Grow the European Business
While Tommy Hilfiger has well-established operations in Europe, with retail sales of over $2.7 billion in 2013, we believe that there is significant potential for further expansion in Europe. Our strategy to drive growth in the region includes:
- Growing the business in product categories that we believe are currently underdeveloped in Europe, such as underwear, men’s tailored clothing and womenswear;
- Expanding the handbags and small leather goods business;
- Concentrating on the development of the business in "Conquer" markets, which reflect newer, underpenetrated markets where we have experienced accelerated growth and see tremendous opportunities for further potential in the near-term, including Russia, Eastern Europe and France. We will also seek to further penetrate "Expand" countries, which are those in which we have significant operations but also significant growth opportunities, such as Germany, Scandinavia, Turkey and the UK. Our "Nurture" countries are those in which we have a well-established presence and plan to improve productivity, or markets that are in crisis, in which we want to sustain the existing business and grow our presence over the medium-to-long term. This category includes Spain, Italy and Ireland;
- Increasing Tommy Hilfiger's presence in Europe through the expansion of specialty and outlet stores. As part of our focus on global brand positioning, we are adding new stores in "A" locations, including the opening of several accessories and womenswear-only stores and dedicated tailored clothing stores;
- Pursuing controlled growth of our very profitable outlet store business, as the outlet channel has grown rapidly in Europe in recent years;
- Elevating our established tommy.com e-commerce platform with a redesign of the website and improved navigation;
- Enhancing the brand experience for consumers by aligning the product, store design, visual merchandising and marketing across Europe, and upgrading product with superior quality, detailing and design;
- Evaluating franchisees and distributor partnerships to determine whether it makes strategic sense to buy back any of these businesses; and
- Recruiting new talent in design.
Further Strengthen and Drive the North American Business
Our North American business is performing well, as evidenced by the 8% revenue growth and 4% comparable store sales gain in the region during 2013. Most notably, operating margins for the North America business reached a new record in 2013, as the improvements to streamline design, processes, supply chain and distribution, along with targeted marketing programs, are paying dividends. We intend to achieve continued growth in the North American business by:
- Strengthening our image as an iconic American designer brand with the North American consumer by investing in product quality, design and leveraging our centralized design and buying platform across our wholesale, retail and e-commerce businesses;
- Further optimizing our strategic alliance with Macy's and Hudson’s Bay by leveraging our logistics capabilities and "preferred vendor" relationships. At Macy’s specifically, we seek to add product categories to the merchandise assortments; increase the square footage and enhance the location of "shop-in-shop" locations in high-volume Macy's stores; feature Tommy Hilfiger products in national Macy's marketing campaigns; concentrate on brand enhancement and elevation through strategic marketing investments and bring new brand content and product visuals to macys.com;
- Expanding product offerings by Tommy Hilfiger and its licensees in the retail, wholesale and e-commerce channels;
- Increasing Tommy Hilfiger’s presence and brand positioning in North America with new retail stores at premium outlet centers, launching new retail concepts and expanding square footage in select existing stores to house a more comprehensive assortment of Tommy Hilfiger apparel, accessories and lifestyle products;
- Expanding our accessories offerings in the wholesale channel and also developing accessories destinations in our own top stores;
- Elevating our e-commerce website, which will be driven by the continuous improvement of the look and feel, and customer experience on our site;
- Broadening the reach of our new loyalty program, and using its findings to better connect with our customer base; and
- Evaluating further capsule collections, following the great success of our "To Tommy, From Zooey" collaboration with Zooey Deschanel.
Expansion Opportunities in Asia
Tommy Hilfiger products are sold in over 1,000 points of distribution in 12 countries in Asia. With 2013 retail sales of nearly $700 million, we intend to capitalize on opportunities to grow the Tommy Hilfiger business in Asia by:
- Implementing strategic initiatives in Japan to support and elevate the business, such as focusing on sportswear product enhancements and local market fits. We are also shifting business to department stores in order to accommodate local market shopping preferences;
- Improving brand visibility and positioning in Japan and capitalizing on our flagship store in Omotesando, Tokyo, which opened in 2012 as the first flagship in the fashion capital of the region;
- Investing in high growth markets such as China and India. In 2011, our China joint venture commenced operations and we acquired a direct interest in the Tommy Hilfiger licensee in India. We have seen extraordinary growth in these two countries, with both regions exceeding our margin expectations. Our direct involvement in the operation of these businesses allows the regions to better leverage our global design, sourcing and marketing platforms to support development and expansion in these high-priority growth markets;
- Introducing regional sizing and other initiatives targeted at meeting local market needs; and
- Pursuing a balanced strategy of acquiring licensees, distributors and franchisees where we believe we can achieve greater scale and success compared to our partners, while at the same time licensing businesses for product categories and markets when we believe local partners provide the best opportunity for success.
Expansion Opportunities in Latin America
Latin America is another focus market with compelling growth opportunities for the Tommy Hilfiger brand. With 2013 retail sales of over $360 million and approximately 180 licensee stores, we have established a notable presence in the region, but we believe that there remains significant capacity for brand growth. Our initiatives include:
- Leveraging our joint venture in Brazil to gain a direct entry in this high-growth emerging market, as we believe this remains our largest underpenetrated opportunity in Latin America;
- Furthering our focus on growing our Latin American businesses with our licensees, with an emphasis on elevated product, local market fits, price positioning, and "wear-now" offerings, which take into account varied seasonal timings; and
- Pursuing a balanced strategy of acquiring licensees, distributors and franchisees where we believe we can achieve greater scale and success compared to our partners, while at the same time licensing businesses for product categories and markets when we believe local partners provide the best opportunity for success.
Further Penetrate e-Commerce Channel
Over the last several years, we have significantly grown and developed our Tommy Hilfiger e-commerce websites for North America, Europe (including Russia), Japan, China and Brazil as consumers are increasingly relying on tommy.com to purchase our products and familiarize themselves with our brand initiatives and product offerings. We will continue to improve the online capabilities and functions of the Tommy Hilfiger e-commerce sites to enhance the consumer shopping experience and attract additional business globally. Current initiatives include:
- Investing in e-commerce in North America, including more lifestyle imagery and editorial content;
- Leveraging our loyalty program, which was launched in Fall 2013 in North America, including data on our customer base and their shopping preferences;
- Driving growth of the highly profitable e-commerce business in Europe by continuing to offer advanced functionality and cutting-edge web features;
- Enhancing customer service, particularly to facilitate easy customer returns; and
- Investing in e-commerce sites in new markets with significant growth potential (i.e. key Asian markets) to drive conversion through a scalable market channel.
Our Heritage Brands business reported 2013 revenues of approximately $2.0 billion1 (which includes our "heritage" brands – Van Heusen, IZOD and ARROW – plus the Speedo2, Olga and Warner’s brands we acquired in connection with the Warnaco acquisition, as well as numerous licensed brands). It was an important year for Heritage Brands, as we strengthened our market position in dress shirts and neckwear, incorporated the acquired businesses, expanded our distribution of IZOD and Van Heusen and sold our G.H. Bass & Co. business.
While we continue to grow our market share in the United States, we are also looking to opportunistically expand the successful dress furnishings business model by investing in our top brands, evaluating additional licensing opportunities, collaborating with key partners and investing in design and marketing. We believe that we can grow the Heritage Brands business from $3.7 billion3 in global retail sales in 2013 to approximately $4.3 billion over the next few years. Our key growth strategies include:
Continuing to Strengthen the Competitive Position and Image of Our Current Brand Portfolio
Our brand portfolio consists of a range of well-known owned and licensed brands we use in our wholesale dress furnishings and sportswear businesses. We intend for each of our brands to be a leader in its respective market segment in the United States, with strong consumer awareness and loyalty. Overarching initiatives within our wholesale business include:
- Continuing to design and market our branded products to complement each other, satisfy lifestyle needs, emphasize product features important to our target consumers and drive consumer loyalty;
- Expanding our owned brands’ presence through product extensions and increased floor space;
- Elevating our shop-in-shop presentations to showcase our products more effectively;
- Investing in our brands through marketing, advertising and other means to maintain strong customer recognition of our brands;
- Enriching the e-commerce experience through our key department store partners and through our directly operated www.speedoUSA.com website; and
- Driving traffic and enhancing the image of our brands through e-commerce and brand websites with strong messaging that conveys the lifestyle message and highlights key products.
Key initiatives in dress furnishings include:
- Continuing to gain market share as we introduce innovative new products and designs;
- Cross-channel expansion;
- Focusing on our Insignia business, which includes brands such as Ike Behar, Valentino, Ted Baker, Elie Tahari, John Varvatos and Michael Kors Collection, with distribution in retailers such as Nordstrom, Neiman Marcus, Saks Fifth Avenue, Bloomingdales and better specialty stores. This piece of our business allows us to diversify our distribution base beyond our well-established operations in the mid-tier and better department stores; and
- Growing our underwear business and expanding assortments by infusing more fashion, such as new colors and trims; and
- Licensing additional brands, as appropriate.
Within wholesale, focus areas for our Van Heusen and ARROW brands include:
- Reinforcing the value equation for each brand, as we are constantly evaluating pricing, product quality and competitive positioning vs. other brands;
- Growing through cross-channel expansion; and
- Strengthening our positioning within the mid-tier department stores. In June 2013, Van Heusen was repositioned on the modern pad next to Claiborne at J.C. Penney and in Fall 2013, Van Heusen underwent a soft shop rollout at Kohl’s.
Several target areas for our Izod wholesale business include:
- Growing our golf business by increasing our presence in the department store channel through market share gains and by expanding our distribution into the golf specialty channel. To support this initiative, we have signed on brand ambassadors to "Team IZOD" which consists of PGA Tour Members Webb Simpson, Scott Piercy, Spencer Levin and Cameron Wilson;
- Maintaining our department store presence and growing profitability through investments in in-store branding and new shop-in-shops. We are also focused on improving our average unit retail prices as we elevate our products with superior quality, detailing and fashion;
- Growing our mid-tier business by expanding the square footage devoted to our shop-in-shops (including the expansion of IZOD at Kohl’s for back-to-school 2014) and strategically improving the placement of our products within stores; and
- Strengthening our e-commerce business at wholesale, through pure-play e-tailers and third party brick and mortar retailer websites.
Developing and Growing Our Newly Acquired Speedo and Core Intimates Businesses
We are pleased with the performance of Speedo, Warner’s and Olga which were added to our Heritage Brands portfolio as part of the Warnaco acquisition. Since the closing of the acquisition, we have been allocating important resources to these brands, investing for their long-term growth and leveraging our existing Heritage Brands operating platform.
Key initiatives for the Speedo business include:
- Fortifying its leadership position in competitive swimming;
- Increasing Speedo’s relevance beyond the competitive swimmer population to reach more general fitness and recreational consumers;
- Building a larger presence and position with sporting goods retailers, such as Dick’s Sporting Goods and The Sports Authority; and
- Growing the sport of swimming and aquatic activities – encouraging more people to "Dive In."
Within Core Intimates, our focus areas include:
- Defending our leading market share positions, including Warner's #1 position in wire-free;
- Increasing the penetration of opportunity categories, such as Warner's underwire bras and panties;
- Increasing margins to allow for investment spending, which includes enhanced retail presentation and additional marketing support for both Warner's and Olga; and
- Expansion within Mexico, particularly in the mass market channel.
Strategic Turnaround of Retail Business
Our retail store base is an important component of how we showcase our Heritage Brands business and interact with the Van Heusen and IZOD consumer. We are committed to improving performance at our Heritage Brands retail stores and leveraging our stores as a complement to our wholesale businesses. Accordingly, we have identified several strategic initiatives that are designed to improve the customer experience and increase store productivity, including:
- Refocusing on each brand’s heritage and strategic positioning to reinvigorate consumer interest;
- Investing strategically in product, enhancing quality and design in areas where the consumer has told us that they want a more elevated product;
- Delivering one consistent brand message across retail and wholesale presentations;
- Sharpening price points to underscore our compelling price / value proposition and cleaning up our promotional messaging to ensure that discounts are easily communicated to consumers;
- Investing in and elevating the in-store shopping experience through in-store marketing (which we have historically under-invested in compared to our peers), fixturing, and improving in-store layouts so that they are convenient for customers and their shopping patterns and needs; and
- Improving financial returns by optimizing our real estate portfolio to ensure that our store footprint corresponds to consumer demand. This entails right-sizing and closing select underperforming store locations, and opening select new stores in centers that meet our demographic needs.
Pursuing International Growth for Heritage Brands
We intend to expand the international distribution of our brands. To date, we have done so principally through licensing. We have approximately 45 international license agreements, covering approximately 165 territories outside of the United States, to use our heritage brands in numerous product categories, including apparel, accessories, footwear, soft home goods and fragrances. We also conduct international business directly, selling dress furnishings and sportswear products to department and specialty stores throughout Canada and operating a select few stores in Canada. We believe that our strong brand portfolio and broad product offerings enable us to seek additional growth opportunities in geographic areas where we believe we are underpenetrated, such as Europe, Asia and Latin America.
Other Strategic Opportunities for PVH
We continue to build our brand portfolio through acquisition and licensing opportunities. While we believe we have an attractive and diverse portfolio of brands with growth potential, we will continue to explore acquisitions of companies that we believe are additive to our overall business. We take a disciplined approach to acquisitions, seeking brands with broad consumer recognition that we can grow profitably and expand by leveraging our infrastructure and core competencies and, where appropriate, by extending the brand through licensing.
Additionally, we will continue to evaluate opportunities to buy back various licensed businesses and / or joint ventures, where we believe that we can leverage our core competencies. Within the Calvin Klein brand, we see potential over the long-term to take direct control over various product categories, including the North American men’s tailored, international footwear and North American women’s apparel businesses. At Tommy Hilfiger, there are opportunities over the long-term to take direct control of key markets, including our joint ventures in China and Brazil, as well as various licensed businesses in Southeast Asia and Mexico.
New license opportunities are also a consideration, and we will seek opportunities that allow us to fill new product and brand portfolio needs.
Calvin Klein is one of the best known designer names in the world, offering a modern design aesthetic. The Calvin Klein brands — Calvin Klein Collection, Calvin Klein (platinum label)2, Calvin Klein (white label), Calvin Klein Jeans and Calvin Klein Underwear — provide us with the opportunity to market products both domestically and internationally at various price points, distribution channels and to different consumer groups than most of our Heritage Brands business product offerings. Global retail sales of products sold under the Calvin Klein brands were approximately $7.8 billion in 2013.
Tommy Hilfiger is one of the world’s leading designer lifestyle brands and is internationally recognized for celebrating the essence of classic American cool style, featuring preppy with a twist designs. Founded in 1985, Tommy Hilfiger delivers premium styling, quality and value to consumers worldwide under the Tommy Hilfiger and Hilfiger Denim brands, with a breadth of collections including Hilfiger Collection, Tommy Hilfiger Tailored, men’s, women’s and children’s sportswear, denim, accessories, and footwear. With the support of strong global consumer recognition, Tommy Hilfiger has built an extensive distribution network in over 90 countries and more than 1,400 retail stores throughout North America, Europe, Latin America and the Asia Pacific region. Global retail sales of the Tommy Hilfiger brand were US $6.4 billion in 2013.
Our Heritage Brands business encompasses the design, sourcing and marketing of a varied selection of prominent brand-label dress shirts, neckwear, sportswear, swim products, intimate apparel, underwear and related apparel, as well as the licensing of our owned brands (other than the Calvin Klein and Tommy Hilfiger brands), for an assortment of products. Global retail sales of our Heritage Brands business were approximately $3.7 billion in 2013 (excluding revenues from G.H. Bass & Co.).