PVH NYSE: PVH CEO Stefan Larsson said the company is pursuing “systematic, repeatable” growth by connecting brand strategy, product development, consumer engagement and operating discipline across its Calvin Klein and Tommy Hilfiger businesses.
Speaking alongside newly appointed CFO Alexis Rollier, Larsson said the company’s approach is intended to move beyond relying on seasonal product improvements. Instead, PVH is identifying priority categories and product franchises, investing in newness and innovation, and seeking to translate its brand appeal into stronger performance across stores, e-commerce and wholesale partners.
Focus on Young Consumers and Core Categories
Larsson said consumer research indicates Calvin Klein and Tommy Hilfiger have built particular strength with Gen Z and younger millennials, especially among “status shoppers” and “style enthusiasts.” He described those segments and their value-oriented counterparts as representing roughly 40% of the total market.
For Calvin Klein, Larsson identified underwear and denim as core categories. Those categories represent about half of the brand’s business, while underwear and the broader jeans lifestyle account for about 80%, he said. He pointed to double-digit denim growth and double-digit average unit retail, or AUR, expansion in denim, while also citing mid-single-digit growth in underwear.
Tommy Hilfiger is emphasizing sweaters, outerwear and shirts, according to Larsson. He said the company is seeing double-digit growth in sweaters and mid-single-digit growth in shirts, while seeking to reinforce the brand’s “classic American style” positioning and product value.
Larsson said the company is working to make brand marketing more directly connected to product and point-of-sale execution. Calvin Klein’s denim marketing, for example, has been structured around specific fits and product messages, he said, with campaigns featuring talent including Sadie Sink intended to drive consumers toward featured products in stores and online.
Digital, Direct-to-Consumer and Wholesale Strategy
Larsson said direct-to-consumer performance has benefited from double-digit traffic growth to e-commerce, new customer acquisition, retention and higher customer lifetime value. He said PVH has recorded e-commerce growth across brands and regions, as well as AUR expansion.
He added that North America and Asia-Pacific have not experienced major macroeconomic disruption in the company’s view, supporting direct-to-consumer growth. In Europe, where Larsson said consumer sentiment has been pressured by the Middle East war, PVH grew e-commerce year over year and sequentially improved its direct-to-consumer store business from the first quarter to the second quarter.
PVH is also working more closely with wholesale partners including Zalando, Amazon, Tmall and Macy’s, Larsson said. The company aims to use partner data and consumer insights to jointly grow its brands. He cited newly renovated Calvin Klein and Tommy Hilfiger shop-in-shops at Macy’s Dadeland location in Miami as performing well.
New CFO Highlights Discipline and Global Capabilities
Rollier, who said he had been with PVH for one month, joined after serving as global chief operating officer and chief financial officer at Sephora. He said his experience scaling Sephora centered on cost discipline, gross-margin management and reinvestment in growth areas including real estate, digital, technology and procurement.
At PVH, Rollier said he sees an opportunity to further develop global capabilities within a business that has historically been decentralized across brands and regions. Greater use of global infrastructure could make initiatives “faster, cheaper, more efficient,” he said, while improving the company’s speed to market.
Rollier said PVH has already created substantial “upper funnel” brand excitement through its marketing, but the next opportunity is to scale consumer activation throughout the shopping journey. He emphasized disciplined marketing allocation and linking marketing investments to stronger sales and customer experiences.
Licensing Business and Store Tests
Larsson said licensing remains a significant recurring revenue and profit stream for PVH. The company has a $350 million licensing business and expects total licensing to begin growing next year, following the completion of a transition involving North American women’s wholesale licensing by the end of this year, he said.
He said PVH has taken greater control of its core consumer proposition while continuing to work with licensing partners in categories such as eyewear, small leather goods, belts and footwear.
Larsson also cited the Calvin Klein store in New York’s SoHo neighborhood as a testing ground for merchandising and consumer interaction. The store has increased its focus on denim and underwear, he said, and offers shoppers the ability to create custom three-packs from 50 colors of Calvin Klein’s Icon Cotton Stretch underwear.
Looking ahead, Larsson said PVH’s priorities include expanding its success in core categories, increasing operational and financial discipline, and further converting consumer interest in Calvin Klein and Tommy Hilfiger into sales across digital, retail and wholesale channels.
About PVH (NYSE:PVH)
PVH Corp. NYSE: PVH is a global apparel company that owns and operates the Calvin Klein and Tommy Hilfiger brands. Its products include clothing, accessories, footwear, underwear, and related lifestyle merchandise for women, men, and children.
The company sells its products through company-operated stores, e-commerce platforms, wholesale partners, and licensing arrangements. Calvin Klein and Tommy Hilfiger merchandise is distributed across North America, Europe, Asia-Pacific, and other international markets.
PVH traces its history to 1881 and has expanded through brand development and acquisitions, including its acquisition of Tommy Hilfiger in 2010.
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