Memo from our CEO

PVH outperformed its budgeted outlook from
a top and bottom line perspective in 2017.

Manny Chirico

PVH demonstrated the power of its diversified business model throughout 2018. We leveraged our portfolio of iconic brands, our strong global platforms and our multi-channel distribution model to grow revenues by 8% to $9.7 billion and post GAAP earnings per share of $9.65, representing 41% growth year-over-year (EPS on a non-GAAP basis of $9.60*, representing 21%* growth year-over-year). Through the passion and dedication of our associates and our collective focus on continual evolution, our results significantly exceeded our initial expectations, despite weaker than expected results at Calvin Klein, the challenging retail landscape, geopolitical pressures and a weakening macro-economic picture. We believe our results demonstrate the “Power of PVH” – the incredible makeup of our organization that encompasses our iconic brands, our talented teams and our wide range of global growth opportunities.

With a history going back over 135 years, our company has been built through innovation and transformation to adapt to a changing consumer landscape, new business opportunities and geopolitical realities. And, in everything we do, we are committed to our values: individuality, partnership, passion, integrity and accountability. 

2018 brought new conversations and challenges, leading us to invest in areas that are most impacted by the changing dynamics in the industry – the growing prominence of digital, the importance of having a nimble and responsive supply chain, an increased focus on sustainability and harnessing the power of data to personalize consumer experiences. Our efforts to be more agile and empower our associates drove our performance, and I am inspired every day by what I see across the company: creativity, vision and desire to power change the right way.

Our top priorities continued to be delivering excellent product at great value and engaging consumers through our marketing efforts – all while maintaining our essential commitment to authenticity. Tommy Hilfiger had an outstanding year, growing across all product categories. Calvin Klein delivered strong topline growth, with particular momentum in Europe. While we encountered design issues in our CALVIN KLEIN 205 W39 NYC and CALVIN KLEIN JEANS product lines that impacted our results in the second half of the year, we embraced change, taking quick and decisive action to maintain the long-term health of the Calvin Klein businesses and we continue to see a significant path to unlock the revenue and margin opportunities in the business. We were also pleased that our Heritage Brands business continued to generate strong cash flow.

PVH is truly a unique organization. We power brands that drive fashion forward – for good. From our associates’ embodiment of our values, to our ongoing commitment to Corporate Responsibility (“CR”), to our efforts to invest in the long-term success of our associates, I am so proud of what our organization stands for. We recognize our responsibility as an industry leader to consider CR throughout our strategic business decisions to positively affect human rights, environmental protection, inclusion and diversity and community engagement. Our success is not only measured by our business results but how we achieve them.

I believe that the opportunities for PVH are endless as we continue to execute on our strategic priorities with an emphasis on driving long-term stockholder value creation. Our commitment to our consumers, associates and communities drives us every day, and the passion we share unites us across this incredible organization. That’s the Power of Us. That’s the Power of PVH.

Sincerely,
Emanuel Chirico
Chairman and Chief Executive Officer