PVH Corp. has announced PVH+ Plan, a roadmap for brand, digital and direct-to-consumer (DTC)-led sustainable, profitable growth through 2025 to deliver accelerated financial performance and long-term value creation.
The company said in a release that leveraging the strength of its two global brands, Calvin Klein and Tommy Hilfiger and connecting them closer to the consumer, PVH is targeting high single-digit global CAGR and total revenue target of 12.5 billion dollars, with operating margin expanding to 15 percent and free cash flow above 1 billion dollars in 2025.
Commenting on the plan, Stefan Larsson, PVH’s chief executive officer, said: “Having successfully driven an accelerated recovery and generated record earnings per share in 2021, our priority now is to connect with the consumer in ways that reflect the formula to win in the ‘new normal’ and create long-term value. The execution of the PVH+ Plan will accelerate the growth of Calvin Klein and Tommy Hilfiger, two of the most iconic brands in the world, by unlocking their full potential across each of our regions.”
PVH announces PVH+ Plan to drive growth
The execution of the PVH+ Plan is also expected to achieve balanced growth from Calvin Klein and Tommy Hilfiger globally, high single-digit CAGR in Europe and the Americas; mid-teens CAGR in Asia Pacific, 20 percent CAGR in digital channels with direct-to-consumer brick & mortar outpacing wholesale brick & mortar.
On April 11, 2022, the company’s board of directors approved a 1 billion dollars increase to the stock repurchase authorization and extended it three years to June 2026.
As part of its growth plan, the company added, PVH will develop the best hero products in the market across key growth categories, with a focus on expanding in large and growing global demand spaces where the company’s iconic brands resonate most with consumers.
By driving digital-first, 360-degree consumer engagement built around brand, products and key consumer moments, Calvin Klein and Tommy Hilfiger will meet consumers on their terms in new and engaging ways. PVH, the company further said, is accelerating digital growth by building a holistic distribution strategy for Calvin Klein and Tommy Hilfiger, led by digital and direct-to-consumer channels, and supported by key wholesale partnerships.
“While investing to fully capitalize on the global, digital and DTC-focused potential of our plan, we will also drive efficiencies that together will accelerate earnings growth and deliver strong and sustainable shareholder returns,” added Zac Coughlin, chief financial officer of PVH.