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PVH 2020 Annual Report

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PVH 2020 Annual Report Annual Report 2020 PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 01 About PVH PVH is one of the world’s largest and most admired fashion companies, connecting with consumers in over THAT’S THE 40 countries. Our global iconic brands include Calvin POWER OF US. Klein and TOMMY HILFIGER, and our Heritage Brands. Our 140-year history is built on the strength of our THAT’S THE brands, our team and our commitment to drive fashion forward for good. POWER OF PVH. PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 02 WE POWER BRANDS THAT DRIVE FASHION FORWARD – FOR GOOD VALUES INDIVIDUALITY PARTNERSHIP PASSION INTEGRITY ACCOUNTABILITY Be you Work together Inspire and innovate Do the right thing Own it PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 03 Chairman’s Message “PVH ADAPTED TO MANAGING THE BUSINESS AND THE REALITIES OF LIFE IN AN ENTIRELY NEW WAY” There is no way to look at 2020 other than as a year of unprecedented change and uncertainty. I had the opportunity to oversee how the PVH family successfully navigated through the pandemic and adapted to managing the business and the realities of life in an entirely new way. As we closed the fiscal year, I transitioned out of my role as CEO and began a new chapter at PVH, concentrating on my responsibilities as Chairman of the Board of Directors. For 27 years, I have gone to work each day knowing what a privilege and honor it is to lead this incredible company. The Power of PVH as a global growth platform for our iconic brands is fueled by our people. I am so proud of the business we have built – one that reflects our resilience and ability to manage our brands successfully, even as the industry has experienced rapid change and extraordinary disruption, most recently with the global impacts of COVID-19 that drove significant acceleration of the already changing consumer landscape. Manny Chirico Chairman, PVH Corp. PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 04 My personal journey at PVH began as Controller in 1993 and, as I worked my way up in the organization, I immersed myself in the business and was able to walk the halls in order to meet most of our office-based associates globally. I was fortunate to help shape the direction of PVH’s future, evolving a family-led company into an independent executive-led company, with a new strategic direction, while maintaining the founding family’s emphasis on our core values. Our key strengths that have allowed PVH to thrive and transform over the last 140 years include our inherent focus on our brands and our people, our strong balance sheet and our financial discipline. Now, with the benefit of hindsight, I can clearly see how the past almost-three decades of our collective emphasis on evolving through innovation and transformation, together with delivering iconic product and long-term returns, as well as our commitment to corporate responsibility, sets us up for a very successful future. As we leveraged these capabilities, PVH grew from a North American-based dress furnishings company to be a diversified global leader in the apparel industry with a portfolio of iconic brands. Today, over 60% of our revenue comes from outside the U.S., and we employ approximately 33,000 associates worldwide. Our evolution as a company complements the growth of the digital world, the dynamic retail landscape and our global approach to business. What has been consistent through all of it has been our ability to transform our business model in order to meet our consumers’ changing needs and preferences in an ever-changing retail landscape. The Calvin Klein acquisition in 2003 established PVH as a key player in the designer lifestyle business and we continued our path of transformative acquisitions with Tommy Hilfiger in 2010 and Warnaco in 2013. These strategic transactions further diversified our business model by adding iconic global brands to our portfolio, while also establishing world-class operating platforms in North America, Europe, Asia Pacific and Latin America. At the same time, we pursued organic growth opportunities to expand our lifestyle brands worldwide, built one of the strongest supply chains in the industry and developed an incredible corporate responsibility strategy that reflects our own values-driven culture. PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 05 As I compare our strategic capabilities against where the retail industry is going, I believe that PVH – with Stefan Larsson as its leader – is well positioned to succeed in the new post-pandemic world of retail and emerge as a stronger organization. Since joining PVH as President in 2019, Stefan has managed our brands and regions with a proactive and thoughtful approach. He drove strategies to gain market share through enhanced brand and product relevance and, more recently, navigating the company through the impacts of COVID-19 and enabling our brand and regional leadership teams to take necessary measures to refocus our businesses to win with the consumer. He has prioritized accelerating our digital agenda and leveraging data to make quicker and more informed decisions around product and consumer engagement, all while maintaining a focus on sustainability. Beyond our financials, I am most proud of the incredible culture we have built; one where we embrace a people-first approach, embedding our values of individuality, partnership, passion, integrity and accountability in how we do business. Our purpose to drive fashion forward – for good – motivates us every day as we strive to do the right thing for our people, our consumers, our stockholders, our communities and our planet, and we prioritize long-term benefits over short-term results. “WE HAVE WORKED HARD TO CREATE AN INCLUSIVE AND DIVERSE ENVIRONMENT WHERE EVERY INDIVIDUAL IS VALUED AND EVERY VOICE IS HEARD” PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 06 In a year of unprecedented uncertainty, we were all deeply touched by the tragic incidents of racial and social inequality that occurred and we embraced our collective efforts to effect and accelerate change. We have worked hard to create an inclusive and diverse environment where every individual is valued and every voice is heard. While we have made good progress, we recognize there is more to be done such that all levels across our organization reflect the diversity of the world at large. In my continuing role as Chairman and as a resource to Stefan, my commitment to PVH remains very strong. Our unique competitive advantages – our incredible people, our iconic global brands and our strong business fundamentals – define who we are as an organization. I look forward to seeing Stefan and the rest of the senior leadership team, many of whom have been with PVH for over a decade, deliver our next chapter of growth and drive an accelerated recovery. I have the utmost confidence in the team based on their expertise and collective knowledge of our company, industry and consumer base. I believe that we are well positioned to deliver sustainable, Manny Chirico Stefan Larsson profitable long-term growth for our stockholders, in addition to leading the fashion Chairman Chief Executive Officer industry towards a more sustainable and responsible future. I cannot thank enough our Board, our leaders, all of our amazing associates worldwide, you, our stockholders and our other stakeholders for your contributions, partnership and support. Sincerely, Manny Chirico Chairman PURPOSE | CHAIRMAN’S MESSAGE | LETTER TO STOCKHOLDERS | BY THE NUMBERS | YEAR IN REVIEW | EVOLVING OUR BUSINESS ACCESS PRINTER STRENGTHENING OUR TEAM | DIRECTORS, OFFICERS, REGIONAL & BRAND MANAGEMENT | OTHER INFORMATION | ANNUAL REPORT ON FORM 10-K VERSION 07 Letter to Stockholders “I LOOK FORWARD TO DRIVING PVH’S NEXT CHAPTER OF GROWTH, CONTINUING THE COMPANY’S EVOLUTION” As I write my first Letter to Stockholders, I would like to share what an honor it is to lead this great company as we drive towards an accelerated recovery from the COVID-19 crisis, and at the same time start to build our next growth chapter to win with the consumer in the “new normal.” I would also like to thank Manny Chirico and the Board of Directors for their confidence and trust in me, as well as for the very strong partnership we have formed since I joined PVH almost two years ago. What initially excited me about PVH are our inherent strengths: We have two of the most iconic brands in the industry with a very large and strong consumer base; a truly global presence with a rapidly growing digital and multi-channel distribution; global platform capabilities in finance, supply chain, technology, corporate responsibility and human resources, and, most importantly, very talented teams behind all of them.
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