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In the past 27 years, Allen E. Sirkin has seen many changes in the apparel industry and at PVH Corp.
This story first appeared in the April 19, 2012 issue of WWD. Subscribe Today.
Those changes cover much ground, and not just the four major acquisitions of Izod, Superba, Calvin Klein and Tommy Hilfiger.
Sirkin, who began his second stint at PVH in 1985, was president of The Van Heusen Co. and The Designer Group from 1988 to 1990. He served as chairman of the firm’s apparel group from 1990 until 1995, was named vice chairman of dress shirts in 1995 and president and chief operating officer in February 2006.
Most striking during his tenure has been the changing apparel production landscape. He saw Van Heusen become the top-selling dress shirt brand in U.S. department stores in 1991. Back in 1993, no one customer accounted for more than 10 percent of the firm’s sales. Wholesale clients included May Department Stores Co., Federated Department Stores Inc., Dayton Hudson Corp., J.C. Penney Co. Inc., Macy’s Inc., Younkers and Mercantile. With the consolidation of department store doors, sales to PVH’s five largest customers in 2008 were 31.7 percent of total revenues. Those accounts included Macy’s, J.C. Penney, Kohl’s and Wal-Mart. Macy’s, PVH’s largest customer, accounted for 11.5 percent of all sales.
Also in 1993, 35 percent of the wholesale apparel products were manufactured in company facilities in the U.S., Puerto Rico and the Caribbean Basin. Domestic manufacturing facilities were in Alabama, Arkansas and Puerto Rico. Other facilities were in Costa Rica, Guatemala and Honduras.
By 1998, domestic manufacturing was primarily isolated to its facility in Alabama, as well as in Costa Rica and Honduras. More than 95 percent of the firm’s offerings were produced by manufacturers in foreign countries by 2002. By 2011, following the acquisitions of Calvin Klein and Tommy Hilfiger, PVH’s products were manufactured in more than 750 factories across more than 40 countries.
The employee head count has changed, too, given the move to overseas production and restructuring over the years. The firm had a total head count of 13,100 employees in 1993, with 10,200 full-timers and 2,900 part-timers. That total fell to 9,800 by 2000, with 6,200 considered full-time and 3,600 counted as part-time staff.
1987: Sold Joseph & Feiss, whose roots are in tailored clothing, and its 45-unit chain for $41.4 million to division managers.
• Acquired G.H. Bass & Co. from Chesebrough-Pond’s Inc. for $79 million; PVH’s balance sheet gets recapitalized.
• Net income is $30 million on total revenues of $500 million.
1989: Acquired Windsor Shirt Co., a private label retail chain comprised of 39 stores.
1992: Net income is $37.9 million on total revenues of $1.04 billion.
1993: Bruce Klatsky, president, is named chief executive officer.
1994: Klatsky adds role of chairman.
1995: Crystal Brands Inc. acquired for $114.7 million. Includes Gant, Izod and Salty Dog brands.
• Net income is $294,000 on total revenues of $1.46 billion.
1999: Gant sold to Pyramid Sportswear AB for $71 million, with PVH retaining a 19 percent minority equity interest in Pyramid.
• Of the business segments, 27 percent of sales is from dress shirts; 27 percent from footwear and related products, and 46 percent from sales of other apparel goods, primarily branded sportswear.
2000: PVH acquires worldwide rights to Van Heusen and acquires the license to manufacture designer dress shirts under the Kenneth Cole brands.
2003: Calvin Klein acquired for $438 million.
• Net income is $14.7 million on total revenues of $1.58 billion, including $163.9 million in Calvin Klein licensing income.
2004: PVH acquires worldwide rights to Arrow from Cluett American Group Inc. for $70.5 million.
2005: Mark Weber succeeds Klatsky as chief executive officer.
2006: Emanuel Chirico elevated to ceo after Weber’s departure.
• Net income is $155.2 million on total revenues of $2.09 billion, which includes $182.3 million in royalty income.
2007: Company acquires Superba Inc. for $113.3 million, plus an earnout.
• The value of $100 invested in PVH stock after five years is $375.32.
2008: Following economic meltdown in 2008, the value of $100 invested in PVH stock after five years is now worth $111.68.
• Net income is $91.8 million on total revenues of $2.49 billion, which includes $236.6 million in royalty income.
2010: PVH acquires Tommy Hilfiger for $3 billion.
• Net income is $53.8 million on total revenues of $4.64 billion, which includes $309.6 million in royalty income.
2011: Emanuel Chirico adds the role of chairman.
• Net income is $317.9 million on total revenues of $5.89 billion, with 40 percent attributable to international sales. Royalty income is $356 million.
• Corporate name changes to PVH Corp. from Phillips-Van Heusen Corp.
• The value of $100 invested in PVH stock after five years is $166.19.
A CLOSER LOOK
Calvin Klein, Tommy Hilfiger and the heritage brands by the numbers: