PVH Corp., the owner of Tommy Hilfiger and Calvin Klein, presented a fresh growth plan during its investor day on Wednesday.
Dubbed the PVH+ Plan, the company is accelerating its growth with the goal of reaching $12.5 billion in revenues by 2025, with operating margin expanding to 15% and free cash flow above $1 billion.
To reach this goal, PVH said that it plans to focus on fast-tracking 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.
The company’s digital-first strategy will use a 360-degree consumer engagement approach built around brand, hero products, and key consumer moments. PVH said further that it would partner with the “best creators” in the industry and build out each brand’s ambassador program.
PVH also noted that its plan includes the development of a demand- and data-driven operating model, starting with a systematic and repeatable product creation model that leverages data to quickly bring new products to market.
“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,” said Stefan Larsson, CEO of PVH. “The execution of the PVH+ Plan will accelerate the growth of Calvin Klein and Tommy Hilfiger … by unlocking their full potential across each of our regions.”
This news comes after the company reported in March that its revenue increased 16% to $2.430 billion in the fourth quarter of 2021, with full year revenue increasing 28% to $9.155 billion.
Looking ahead, PVH is projecting its revenue in 2022 to increase 2% to 3% compared to 2021, which reflects a 2% reduction resulting from the exit of its Heritage Brands retail business and a 2% reduction resulting from the company’s decision to temporarily close its stores and pause commercial activities in Russia and Belarus, as well as a reduction in wholesale shipments to Ukraine as a result of the war.