We operate a diverse portfolio of leading lifestyle brands. We believe that we can realize the long-term Calvin Klein, Tommy Hilfiger and Heritage Brands revenue opportunities by gaining market share, expanding our brands into new categories and regions, growing our e-commerce operations and making strategic acquisitions through which we believe that we can achieve synergies and leverage our core expertise.
PVH operates three distinct business groups – Calvin Klein, Tommy Hilfiger and Heritage Brands (which consists of Van Heusen, IZOD, ARROW, Warner’s, Olga and Speedo1, as well as numerous licensed brands). Our strategy is to take our powerful, iconic brands and maximize their potential and consumer reach while staying true to their unique brand DNA and core values. Our brands are sold at multiple price points and across multiple channels of distribution and geographies, which allows us to provide products to a broad range of consumers, while minimizing competition among our brands and reducing reliance on any one demographic group, merchandise preference, price point, distribution channel or geography. We support each of our brands’ growth through 360° marketing campaigns, which consist of traditional and digital media, and are designed to drive brand relevancy and engage consumers across the world.
Each of our owned brands are distributed through the wholesale, retail, e-commerce and licensing channels, which we believe provides our brands with the opportunity to compete and succeed. Across these channels, we seek to grow each of our brands through a combination of market share gains, new distribution and expansion into new product lines and geographies. E-commerce is a meaningful focus area for us, and we are investing in new technology and functionality across our websites. In addition to our own directly operated websites, we also sell our products through websites operated by our key wholesale partners and pure-play e-commerce retailers.
PVH has established its diverse portfolio of brands through its history of acquisitions, which date back to the early 1900’s. In recent years, we have transformed our company through our large-scale acquisitions of Calvin Klein (2003) and Tommy Hilfiger (2010), which added these two global designer lifestyle brands into our platform, and through our most recent acquisition of Warnaco (2013), through which we assumed direct control of Calvin Klein's two largest apparel categories — jeanswear and underwear. Through our acquisitions, both large and small, PVH has become a much more diversified organization, with a broader brand portfolio, a more globalized footprint and distribution network and a larger customer base. We see a sustainable path of long-term organic growth as we capitalize on the opportunities to grow our brands into new categories, new distribution and as we continue to gain market share. Additionally, acquisitions will remain a key component of PVH’s future growth profile, and we will continue to explore strategic acquisitions of licensing opportunities, trademarks and / or companies that we believe are additive to our overall business.
Growing our businesses and driving stockholder returns remains a key priority to us. Accordingly, we are focused on generating strong free cash flows, which we intend to use to reinvest in our businesses, pay down debt, fund future acquisitions and / or repurchase stock. We believe that maintaining a strong level of financial flexibility will allow us to maximize the potential of our businesses over the long term.
We see a healthy path of sustainable growth for PVH, driven by our iconic global designer lifestyle brands, Calvin Klein and Tommy Hilfiger. We believe that our nondomestic operations – particularly Asia and Latin America – will continue to expand and become a larger driver of our business, as our acquisition of Warnaco significantly increased our directly owned presence in these markets and provided us with strong operating platforms, which we plan to leverage to grow both Calvin Klein and Tommy Hilfiger. Asia and Latin America accounted for 20%2 of PVH’s operating income in 2014, nearly double the level from 2012, and we believe that it will continue to grow in the upcoming years. In addition to these regional growth opportunities, we believe that, over time, we would benefit from operating more Calvin Klein and Tommy Hilfiger businesses directly.
As our company expands organically and through acquisitions, we remain committed to our core business principles. Our teams are world class, and the values that our organization embraces – passion, integrity, individuality, partnership and accountability – position us to drive superior results. PVH also continues to place a strong emphasis on corporate social responsibility (CSR), which underpins how we operate and engage with all of our stakeholders – from associates to consumers to the workers in our supply chain. Our objectives are to make PVH a superior place to work, preserve our environment and have a positive impact on the people in the communities where we live, work and operate. We believe the emphasis we place on CSR today will position PVH for long-term success.
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We leverage our best-in-class global infrastructure, sourcing network, 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.
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.
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.