Stefan Larsson has set his target at PVH Corp.
The chief executive officer, who took the reins of the Tommy Hilfiger and Calvin Klein parent last year, laid out a multiyear strategic plan that expands on and formalizes the brand-centric, digitally led approach he’s used so far.
The plan calls for the company to post revenues of $12.5 billion by 2025, up from $9.2 billion last year, logging compounded annual growth in the high-single digits.
Ahead of the company’s first investor day in more than a decade, Larsson 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.”
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The plan has five key components:
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- Product: PVH plans to win by developing “the best hero products in the market across key growth categories.”
- Consumer engagement: a digital-first, 360-degree approach centered around those hero products and key consumer moments, while partnering with “the best creators in the industry.”
- The digitally led marketplace: The company said it is “accelerating digital growth by building a holistic distribution strategy for Calvin Klein and Tommy Hilfiger.”
- A demand- and data-driven operating model.
- Driving efficiencies and investing in growth.
The plan, the details of which will be fleshed out at the meeting, is intended to build on the strength the business has seen in Europe and Asia while “unlocking the full potential of the strength of its brands in the Americas,” according to the company.
PVH, like many other fashion companies, has regained its footing in the U.S., but is still contending with a lack of tourists given the pandemic.
PVH+ calls for balanced growth between the company’s two main brands, a high-single-digit compounded annual growth rate in Europe and the Americas and a mid-teens rate in the Asia Pacific region, 20-plus percent growth in digital channels.
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