PVH Annual Report 2013

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PVH is one of the largest apparel companies worldwide. With an impressive collection of brands like CK, Tommy, Van Heusen etc. the company achieved a turnover of about $8.2 Billion in 2013. About 75% of of this turnover came from CK and Tommy(Growth brands) and balance came from the Heritage brands like Izod, Van Heusen etc.

The company does not disclose their sales of jeanswear separately, but it does give an indication that jeanswear is not one of their strongest segment and they need to provide much higher focus and attention to it.

We are giving below excerpts from the annual report from PVH which give some details on the financials, market distribution and growth directions for their global growth and heritage brands.

 

PVH Annual Report 2013-calvin klein-tommy hilfiger

 

PVH Annual Report 2013-heritage brands

If we look at the pie charts below we will find that Calvin Klein & Tommy Hilfiger currently account for ~75% of PVH’s revenues and ~85% of PVH’s EBIT, where as heritage brands constitute the balance. We will then look at individual figures for Tommy, CK and Heritage brands.

 

PVH Annual Report 2013

Tommy, Calvin Klein, Heritage Brands

Tommy Hilfiger — Brand Overview

PVH Annual Report 2013 - Tommy hilfiger

Tommy has over 1,450 Stores and over 10,000 Doors Globally in over 90 countries as of February, 2014
~out of these 625 are Company Operated Stores.Following is the breakup of number of stores worldwide for Tommy.

 

Continent No of Stores
Europe 590
Asia (excl. Japan) 310
North America 230
Rest of World 180
Japan 155

 

Tommy Hilfiger — Business Overview & Financials

PVH Annual Report 2013 - Tommy hilfiger 

Tommy Hilfiger Europe – Overview

Europe accounts for ~50% of Tommy Hilfiger global reported revenues
Since 2000, revenues have grown at a 23% CAGR.

Tommy Hilfiger North America – Overview

North America accounts for ~45% of Tommy Hilfiger global reported revenues
• Strong retail presence of ~230 stores, which are primarily company stores.

Tommy Hilfiger Asia – Overview

Geographic expansion continues in Asia.Most regions experiencing double-digit growth.The sales in different regions in Asia is given below :

 

Country Sales
Japan $175 MM
China $135 MM
India $90 MM
Southeast Asia and Australia $270 MM

 

Calvin Klein

Calvin Klein — has a strong global presence with significant growth opportunities. Europe has most stores followed by Asia.

Continent No of Stores
Europe 850
Asia 735
North America 160
Latin America 90

Nearly 3,000 retail locations and over 20,000 wholesale doors globally as of February, 2014
Approximately 1,700 Company Operated Stores

Calvin Klein — Business Overview And Financials

PVH Annual Report 2013 - Calvin Klein

Calvin Klein — North America Overview

Calvin Klein North America revenues accounted for about 50% of Calvin Klein global reported revenues in 2013

The Company is not very happy about its Jeanswear business and says

“Jeanswear performance is challenging, but we are working to strengthen and rebuild the brand
through strategic investments in our product, people, infrastructure and in-store presentations”

Calvin Klein — Asia Overview

Asia accounted for about 20% of Calvin Klein global reported revenues in 2013
• Primarily retail-oriented model (concession shops and free-standing stores)
• High-teens operating margins for the region
China: ~40% of Asia revenues; Experiencing solid sales growth
Korea: ~30% of Asia revenues; Although still down vs. LY, the region is showing
improving trends over prior quarters

Calvin Klein — Latin America Overview

Latin America accounted for about 6%* of Calvin Klein global reported revenues in
2013, primarily driven by Brazil

Calvin Klein — Europe Overview

Europe accounted for about 20% of Calvin Klein global reported revenues in 2013
Categories: Jeanswear and related products, underwear, accessories, bridge
apparel
• Business model: 50% retail / 50% wholesale

 

Heritage Brands — Overview & Financials

PVH has the following Heritage Brands – IZOD, ARROW, VANHEUSEN, SPEEDO and WARNER’S OLGA.

 

PVH Annual Report 2013 - heritage brands

 

PVH Annual Report 2013

 

Review Of 1Q14 And FY2014 Guidance

The Group achieved a turnover of about $2 billion in the first quarter of 2014 (a 2% growth over 2013) and aims to achieve a turnover of about $8.5 Billion in 2014 with an estimated growth of 3%.

Particular 1Q14 1Q14 vs. 1Q13 %Growth FY14 FY14 vs. FY13 % Growth
Revenue ~$2.0 BN ~2% ~$8.5 BN ~3%

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