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.”
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Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
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24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews