Calvin Klein and Tommy Hilfiger should become the world’s most sought-after lifestyle brands. This long-term goal has been committed to PVH Corp., the American parent company of the two labels.
“The second quarter marked another step on our multi-year trip to develop the full potential of Calvin Klein and Tommy Hilfiger and to build it step by step to the most coveted lifestyle brands in the world,” said PVH CEO Stefan Larsson in a telephone conference with analyst: Inside on Wednesday.
In order to achieve this despite increasing US tariffs and macroeconomic uncertainties, the group sets especially on icons, both in the form of prominent faces and within central product categories. But how exactly PVH implements this strategy at Calvin Klein and Tommy Hilfiger?
Calvin Klein: underwear and the power of pop culture
Calvin Klein is on the way back to the roots with underwear. This segment is booming especially with menswear. Since the start of the Icon Cotton Stretch Hero program, accompanied by a global campaign with singer Bad Bunny, the brand has not only gained international attention, but has also achieved two-digit sales increases in the lower laundry area.
“It was incredibly successful and in all regions this segment contributes significantly to sales,” said Larsson. “The combination of a strong product segment, innovative products and an attention -strong campaign with globally relevant talents is a repeatable model that we know about.”
The campaign not only increased brand awareness, but also noticeably increased traffic in the stores and online. Reason enough for the brand to rely on success and now to transfer the strategy to the women’s line. The new Icon Cotton Modal collection will be introduced for women in autumn and is also to be supported by a prominent campaign figure.
In the also important denim segment, Calvin Klein relies on fit shapes that take up the trend towards looser silhouettes. That seems to work. In the last quarter alone, the brand recorded an increase of 19 percent in the fashion division area. This is accompanied by a new Fit Guide and a social media offensive with K-Pop star Min You, which has already achieved record engagements, according to the CEO.
In addition, the brand is working on connecting the collections closer to the Mainline in order to reinforce the so-called halo effect. Creative director Veronica Leoni, who took responsibility for the revival of the Ready-to-Wear area in May 2024, will demonstrate this with her second collection at New York Fashion Week, according to PVH.
Sports and 90s nostalgia as a lifestyle lever at Tommy Hilfiger
Similar to Calvin Klein, Tommy Hilfiger also relies on cultural relevance, but with a clear focus on sports and entertainment. This was most recently visible in the Hollywood production “F1 The Movie”, in which the brand was prominently placed. At the same time, the limited APEX GP range, which was produced for the film, ensures high references. Partnerships with Cadillac in the Formula 1 environment and with the US SailGP team reinterpret the sporty DNA of the brand.
In addition, classic lifestyle campaigns are implemented, most recently with 90s supermodel Claudia Schiffer and actor Nicholas Hoult. Product extensions such as the new Dress Casual category at Menswear or the revival of Tommy Girl open up further target groups.
“Tommy Girl has been an integral part of pop culture since the 1990s, and we use the deep consumers: inner love for the Tommy-DNA,” said Larsson. In North America, more than half of the buyers were: Inside the Tommy Girl capsule new announcements: inside on the website, a third of them made another purchase within 30 days.
Radiation as a counterweight to US tariffs?
Despite all the cultural radiance, tariffs remain an uncertainty factor. Chief Financial Officer Zach Coughhlin said: “The effects of the tariffs will be more noticeable in the fourth quarter, as new sentences come into force and the timing effect of the sell-through plays a role.”
Nevertheless, the company is optimistic and convinced of being well positioned in order to navigate the volatile customs situation. “We have a strong, globally diversified sales basis, 70 percent of our income comes outside the United States, and we work closely with an established network of global sourcing partners in more than 30 countries,” said Larsson.
PVH also works on process simplifications, technology stack, distribution and European structures to expand margins in the long term. At the same time, the marketing investments in the second half of the year rise again, because in the second quarter you saw how well the mix of product innovation, mega talents and full-funnel marketing work. CFO Coughhlin emphasized that the higher marketing editions in the third quarter would lead to a temporary burden on sales and administrative costs. “But in the fourth quarter we will see the full leverage again when the savings from Growth Driver 5 hit fully.”
“We have two of the most iconic brands in the world, we invest in relevance and desire, and we know that this promotes long -term growth and inexpensive,” sums up Larsson. Even if the upcoming quarters of tariffs and fluctuating consumption demand remain shaped, PVH therefore adheres to its strategy characterized by celebrities and radiance.