Over the past decade, PVH Corp. has completed a series of acquisitions that has transformed the previously staid supplier of Van Heusen dress shirts and Izod sportswear into one of the largest and most dynamic apparel marketers on the global stage. It purchased Calvin Klein in 2003, the neckwear manufacturer Superba in 2006 and Tommy Hilfiger in 2010. Three months ago, PVH made waves again when it revealed its purchase of Warnaco Group Inc. for $2.9 billion.
The quartet of acquisitions over the past decade has swelled PVH’s top-line revenue from $1.55 billion in 2003 to about $6 billion in 2012, a 16 percent compound annual growth rate, or CAGR. Earnings per share in the 10-year period have grown from 98 cents to $6.38 (a 23 percent CAGR), while the stock price is up from about $12 a decade ago to $117.83 on Tuesday.
While PVH may have made its aggressive acquisition strategy look like a surefire winner in hindsight, Wall Street often took a pessimistic view on the deals — until PVH proved the naysayers wrong.
“M&A is very hard. There’s a reason that 60 to 70 percent of deals do not deliver what the expectations are. Acquisitions, even small acquisitions, create tremendous disruptions and uncertainty in the entire company,” said Emanuel Chirico, chairman and chief executive officer of PVH, in a presentation outlining the potential upsides and pitfalls of acquisitions. “If you don’t manage that uncertainty and if you don’t manage that disruption, you really have issues.”
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast