The US clothing group PVH Corporation wants to achieve ambitious goals with a new growth strategy. On Tuesday, the parent company of the Tommy Hilfiger and Calvin Klein brands unveiled the five-point program, dubbed “PVH+.”
The group therefore intends to increase annual sales, which were USD 9.15 billion in the most recent 2021/22 financial year, to USD 12.5 billion (EUR 11.5 billion) by 2025.
Average annual growth rates in the “upper single-digit” percentage range are targeted during this period. The company expects a corresponding annual increase in Europe and America, and in the Asia-Pacific region it is even aiming for annual growth rates in the “mid-teens”. The total revenues in the digital sales channels are expected to increase by more than twenty percent per year. At the same time, the group wants to improve the operating margin to around 15 percent by 2025.
“Our new multi-year strategic growth plan leverages the global strength of our brands and reflects the significant opportunities we see across our channels and geographies,” CFO Zac Coughlin said in a statement. “We will invest to fully realize the global, digital and own-retail potential of our plan, while also driving efficiencies that, collectively, will accelerate earnings growth and deliver strong and sustainable returns for shareholders.”
The PVH+ program is based on five strategic cornerstones. The group wants to further optimize its product range and focus on “expansion into large and growing global demand categories”. In addition, digital communication with the target groups is to be expanded.
The company also announced a “holistic distribution strategy” for Calvin Klein and Tommy Hilfiger based on “seamless integration of the physical and digital experiences.” PVH explained that the company’s own retail trade will be in the foreground and supplemented by “key partnerships” in wholesale.
In addition, the company wants to develop an operating model based on data analysis that aligns product development with the needs of customers. There are also plans to reduce costs through efficiency-enhancing measures. The funds thus freed up would be invested in “decisive strategic growth drivers”, explained the clothing supplier.