PVH targets £9.5m in revenue by 2025 in new multi-year strategy
The company said the PVH+ Plan, its multi-year roadmap for brand, digital and direct-to-consumer (DTC) led sustainable, profitable growth will help deliver accelerated financial performance and long-term value creation.
PVH's 2025 financial objectives include high single-digit global CAGR and total revenue target of £9.5 billion (12.5 billion), with operating margin expanding to 15% and free cash flow above $1 billion.
The company's strategy includes developing the best hero products in the market across key growth categories, driving digital-first, 360-degree consumer engagement built around brand, hero products and key consumer moments, partnering with the best creators in the industry, and building out each brand’s ambassador program.
Led by digital and direct-to-consumer channels, and supported by wholesale partnerships, PVH added that it is building a holistic distribution strategy for Calvin Klein and Tommy Hilfiger to accelerate digital growth.
Stefan Larsson, Chief Executive Officer of PVH Corp. 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."
On 11 April, the company's Board of Directors authorised £761 million ($1.0 billion) increase to PVH stock repurchase program.
Zac Coughlin, Chief Financial Officer of PVH Corp. added: "Our new, multi-year strategic growth plan leverages the global strength of our brands and reflects the compelling opportunities we see across our channels and geographies. While investing to fully capitalise on the global, digital and DTC-focused potential of our plan, we will also drive efficiencies that together will accelerate earnings growth and deliver strong and sustainable shareholder returns."