Forbes  Aug 18  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PVH Corp (NYSE: PVH), where a total volume of 5,775 contracts has been traded thus far today, a contract volume which is...
Forbes  Aug 18  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 8/22/16, PVH Corp (NYSE: PVH), Core Mark Holding Co Inc (NASD: CORE), and Carnival plc (NYSE: CUK) will all trade ex-dividend for their respective upcoming dividends. PVH Corp will...
Benzinga  Jul 26  Comment 
The downturn in PVH Corp (NYSE: PVH) shares on Brexit concerns were overblown. Although the shares having recovered since, the stock is “an attractive idea,” given the current business trends, BlueFin’s Rebecca Duval said in a report. She...
Motley Fool  Jun 27  Comment 
The Brexit decline continued, and these stocks led the way down. Find out why.
Benzinga  Jun 10  Comment 
PVH Corp. (NYSE: PVH) revealed Friday that it commenced an offer to sell €350 million principal amount of senior notes due 2024. According to the company, it is selling these notes to take advantage of the current favorable interest rate...
Benzinga  Jun 8  Comment 
Piper Jaffray analysts Erinn Murphy and James House highlighted PVH Corp (NYSE: PVH), Coach Inc (NYSE: COH) and Sequential Brands Group Inc (NASDAQ: SQBG) as the most compelling names to own as the brokerage headed into its 36th annual consumer...
SeekingAlpha  May 30  Comment 


Phillips-Van Heusen (NYSE:PVH) is one of the most well known and popular clothing brands, with multiple brands. Brands under PVH include Calvin Klein, Van Heusen, and IZOD, and it has licensing agreements with many others, including Chaps, Sean John, and DKNY. As the bulk of its brands occupy the mid to lower-mid market range, the company sells its products largely in major department stores and some 700 Phillips-Van Heusen operated outlet locations.[1]. Given its heavy dependence on the U.S. market, PVH has recently began to focus on growing its international presence through licensing agreements and new brand acquisitions.

Evidence of its commitment to growing can be seen through its recent decision to acquire Tommy Hilfiger. PVH announced on March 15, 2010 that it would be paying €2.2 billion, or approximately $3.0 billion in total to acquire the brand.[2]

Company Overview

Business Financials

Total revenues for PVH in 2010 (PVH's fiscal year ends on January 31 of each year) were $2.4 billion, a slight decline from its previous year's revenues of $2.5 billion. Prior to this 2010 decline, PVH's revenues had grown at a steady state for the previous five years. However, despite the decrease in revenues, PVH was able to increase its net income in 2010. Net income in 2010 was $162 million, significantly higher than its 2009 net income of $92 million.

Business Segments

Although the company is frequently acquiring new brands and licensing agreements, Phillips-Van Heusen's broad divisions of holdings have been very stable in recent years. Although the company owns or has relationships with dozens of brands at a range of price points, the company's revenue can be broken down into three main sources: retail, wholesale, and licensing.


The company has wholesale contracts with department and specialty stores for several of its strong-selling brands, including IZOD, Calvin Klein, Van Heusen, and Geoffrey Beene. Most of these brands (with a few clear exceptions like the Calvin Klein collection) are mid-range, sold in department stores with moderate price points. Viewed by Phillips-Van Heusen as it's 'core business'[3], its wholesale revenue is heavily dependent upon a small group of major department stores: sales to the company's five biggest customers accounted for over 30% of total revenue.


Viewed as a complement to its wholesale business, the company sells a broad range of apparel and accessories at the 700 retail stores in operates in outlet locations across the United States.


Phillips-Van Heusen has over 100 different licensing agreements with a broad range of brands, from Valentino and Michael Kors Collection to Perry Ellis Portfolio and Jones New York. The company generally receives 4-8% of the sales of the licensed goods as payment.[4] Licensing brands it owns (as it does most noticably with Calvin Klein), or obtaining licenses from other company's gives the business a way to diversify it's holdings with much less effort than starting or acquiring a new label. However, companies can frequently run into trouble with too much licensing of their luxury brands, thereby oversaturating the market and hurting the label's cachet. This is a problem that Phillips-Van Heusen has as of yet avoided successfully with its Calvin Klein label. Although it has several licenses for Calvin Klein fragrances, intimate apparel, and accessories, thus far the company has kept a watchful eye on product development and design so as not to dilute its high-end collection label.

Trends and Forces

Dependency on Department Stores

Department stores in the United States have undergone significant changes in recent years. In response to declining margins, stores have implemented tighter inventory controls and have scaled back the quantities of merchandise that they purchase from wholesalers. As a company that describes wholesales as its 'core business', Phillips-Van Heusen appears especially vulnerable to such changes. Phillips-Van Heusen also has private label relationships with both Wal-Mart and Macy's, which puts the company in direct competition with some of its biggest clients. Such companies have a strong incentive to prefer their own private labels wherever possible because they can be sold at higher margins than outside brands.

Volatility of Fashion Trends

As fashion trends fluctuate in unpredictable ways, apparel companies must be careful to not fall behind from season to season. While Phillips-Van Heusen's high-end Calvin Klein collection has done well in recent years, there is always a risk that the brand will lose popularity, particularly in light of the many licensing agreements that could potentially dilute the label's prestige.

However, Phillips-Van Heusen appears to be better situated that some competitors in that several of the company's large core brands are comprised of basic wardrobe staples (e.g. IZOD polos, Van Heusen dress shirts) that are not particularly vulnerable to the swings in the high-end fashion world. In addition, the company's strong outlet presence allows it to market and sell excess inventory well.


Phillips-Van Heusen faces competition from a variety of sources. It's mid-range Van Heusen and IZOD brands compete with labels like Lacoste, Kenneth Cole, and Brooks Brothers. After the company acquired the Calvin Klein brand, it entered the highly competitive designer label market, gaining competitors like Gucci, Prada, and Georgio Armani.

In addition, some of the company's biggest competitors are brands with which it has licensing agreements. For example, while the company has a licensing agreement for Nautica neckties, Nautica polo and dress shirts compete directly with the IZOD brand in mid-range department stores nationwide.

Market Share

Phillips-Van Heusen is also one of the biggest sellers of dress shirts in the world: In 2001, the company had over a two-thirds market share of all dress shirts sold in the U.S.[5], and the company's Van Heusen dress shirt brand had a 60% market share of department store sales in 2006[6].


  1. Yahoo Finance! Phillips-Van Heusen Business Summary
  2. PVH 10-K 2009 Item 1 Pg. 2
  3. Phillips Van-Heusen's 2006 10-K, p. 2(filed April 5, 2007)
  4. Phillips Van-Heusen's 2006 10-K, p. 12(filed April 5, 2007)
  5. Wall Street Transcript interview with former CEO Bruce J. Klatsy, published April 23, 2001
  6. Phillips-Van Heusen 2006 Annual Report
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