PVH, which owns Calvin Klein and Tommy Hilfiger, keeps a high margin on its goods and keeps producing cash. Costs and charges outside its regional businesses have squeezed operating profit, and the latest quarter ended in a loss.
The name on a waistband or shirt may well be Calvin Klein or Tommy Hilfiger, both owned by PVH. It sells clothing under these names in three ways: to retail partners, through its own stores and websites, and by licensing. Licensing means other companies pay a fee to put the names on products they make themselves. Most of PVH's goods are imported into the countries where they are sold. Its biggest region, by both sales and profit, is Europe, the Middle East and Africa.
Customers mostly pay for the name. A retailer stocks these brands because shoppers ask for them, and shoppers buy in PVH's own stores or online for the same reason. Licensees pay for the right to use the names. In that business PVH sells permission rather than goods, and it keeps most of what licensing brings in. The costs come next: buying and importing the goods, with import taxes on top, then stores, staff, marketing and offices. What PVH keeps depends less on its prices than on these costs, including costs held at group level, outside the regional businesses.
Create a free account to unlock the rest of this report and access all published research.
This report is general, non-personalized research provided solely for informational and educational purposes. It is not financial or investment advice, a personalized recommendation, an offer to the public, a solicitation, an instruction to buy, sell or hold a financial instrument, or an invitation to engage in an investment activity. ReasyPort is not an authorised or regulated investment firm and does not provide a MiFID II investment service.
This report is based on primary and public sources identified in the report, including issuer filings, annual and interim reports, regulated announcements, investor-relations materials, market data and, where relevant, institutional macroeconomic publications. Facts should be read separately from interpretations, estimates and opinions.
Text, analyses, summaries, translations and charts may be produced with the support of Artificial Intelligence and are subjected to deterministic data and consistency checks before publication. These controls reduce, but cannot eliminate, errors, omissions or incorrect interpretations. Editorial responsibility for publication remains with the producer identified above.
ReasyPort View labels, fair values, forecasts, scenarios, price references and other forward-looking statements are editorial estimates or opinions, not facts or trading instructions. They depend on the assumptions, methodology, market price and information available on the stated reference date and may change without notice. The report is not monitored or updated in real time.
Any relationship, compensation, material holding or other circumstance known to ReasyPort that could reasonably impair the objectivity of a report must be disclosed with that report. Questions, corrections and potential conflicts may be reported through the legal contact shown above.
Public and primary sources, automated extraction and data providers may contain material errors, omissions, inaccuracies, restatements or delays. Accuracy, completeness and timeliness are therefore not guaranteed, and important information should be checked against the original source before it is used.
To the maximum extent permitted by applicable law, ReasyPort, the author, the publisher and the persons involved in producing the report are not liable for losses arising from decisions made solely in reliance on this report. Nothing in this notice excludes or limits any liability that cannot lawfully be excluded or limited.
Any investment decision should be made independently, if appropriate with the support of a licensed financial adviser. Investments in financial instruments involve risks, including the possible partial or total loss of invested capital.
Research methodology, assumptions and disclosuresMeaning of ReasyPort View