Manny Chirico, chairman of PVH Corp., presided over the virtual 2021 annual shareholders’ meeting Thursday morning. During the 16-minute meeting, three business matters were voted upon, and Stefan Larsson, chief executive officer of PVH Corp., gave a brief overview of the state of the business.
Speaking to how PVH is moving forward, Larsson said, “It was an honor to receive the baton from [Chirico] at the beginning of this year…2020 will be remembered as one of the most challenging periods for our industry. The COVID-19 pandemic affected the lives and livelihoods of so many people around the world, even today. Our PVH associates came together as one team to not only successfully navigate the pandemic, but also to position our company to emerge in a stronger position.”
The company’s focus is to win with the consumer by driving brand relevance, taking profitable market share, further strengthening its platform and being more efficient, said Larsson. The company is also becoming more demand- and data-driven. “We believe that our increased and sustained focus on these areas will drive long-term revenue and margin growth for our stockholders,” he said.
As PVH connects closer to where the customer is going, the strength and value-creating potential of its global growth brands — Calvin Klein and Tommy Hilfiger — “is real and already starting to deliver results,” said Larsson.
Earlier this month PVH reported that first-quarter revenue increased 55 percent to $2.1 billion (increased 46 percent on a constant currency basis) compared to the prior-year period. Earnings before interest and taxes on a non-GAAP basis was $249 million compared to a loss before interest and taxes of $247 million in the prior-year period.
Larsson said he was particularly pleased with the disciplined way in which PVH achieved growth in the quarter and how that is positioning the company for sustainable, profitable growth for years to come. He attributed the recovery to leaning into the strength of Calvin Klein and Tommy Hilfiger, international growth — especially in Europe, product strength, pricing power, growth margin expansion and supercharging e-commerce growth. He also said the company has prudently and confidently managed the business, despite continued lockdowns in certain markets and supply chain disruptions in India and Sri Lanka.
He noted that the company recently named Trish Donnelly as CEO of PVH Americas and Calvin Klein.
PVH is dedicated to driving the next growth chapter in keeping with the company’s purpose and strong values, he said. “Our commitment to drive fashion forward for good has never been more important.” He said the company and its associates were able to advance their collective work in human rights, inclusion and diversity as part of their multiyear journey.
Summing up, Larsson said he feels optimistic about the future, and there’s excitement as things are starting to open, consumers are out shopping in stores again and shopping online continues to soar. “I’m very proud of how our teams continue to lean in to what’s in our control to position us as one of the winners in the new normal,” he said.
Asked about the company’s e-commerce sales, he said they’ve made great progress over the past year, and e-commerce accounts for 25 percent of total sales. He said even though they see customers coming back to physical stores, they continue to shop increasingly via e-commerce. He said 25 percent is a great place to be right now, but it’s a starting point.
The 12 nominees for board members were elected to a one-year term. The advisory resolution to approve executive compensation passed, and shareholders ratified Ernst & Young LLC as independent auditors for the fiscal year ended Jan. 30, 2022.
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