2026 CONSUMER & RETAIL CONFERENCE - PVH CORP

Financial Performance:

• Double-digit year-over-year growth reported in e-commerce traffic across all regions, including North America and APAC despite macro headwinds.
• Calvin Klein denim category driving double-digit growth with triple-digit Average Unit Retail (AUR) expansion.
• Underwear category showing mid-single-digit growth for Calvin Klein; sweaters and outerwear driving double-digit growth for Tommy Hilfiger.
• Licensing business valued at $350 million with expectations for growth beginning next year following the reintegration of women's wholesale in North America.
• Strong Same-Store Sales (SSS) performance in renovated flagship locations, such as Sawgrass Mills and the new SoHo store, indicating successful product mix execution.
• Management emphasizes a shift toward financial and operational discipline to improve EBIT margins and long-term shareholder value, leveraging lessons from global operational excellence.

Guidance and Future Outlook:

• Strategic focus on "Systematic Repeatable Growth" through five core pillars: AI (Artificial Intelligence/Assortment), Assortment, Activation, Affordability, and Agility.
• Long-term goal to increase the licensing engine's contribution to revenue starting next year as the company gains full control of core brand propositions.
• Future growth expected to be driven by expanding category franchises (e.g., sweaters for Tommy, underwear/denim for Calvin) and scaling D2C success globally.
• Outlook remains resilient across North America and APAC with no significant macro disruption; Europe is seeing sequential improvements from Q1 to Q2 despite tough sentiment.
• Management anticipates continued AUR expansion and double-digit e-commerce growth as primary drivers of top-line performance.

Business Segments and Product Lines:

• Calvin Klein: Core strength lies in underwear and denim (comprising 50% of revenue, growing to 80% with lifestyle denim). Recent success attributed to clear DNA, "Love Story" campaigns, and celebrity collaborations (Tate McRae, Sadie Sink).
• Tommy Hilfiger: Focus on "Classic American Cool" with innovation in sweaters (cable knits), outerwear, and shirts. Positioned as high value/affordability compared to competitors.
• New Product Innovations: Launched "Icon Cotton Stretch" with customizable 3-pack options (50 colors) in the SoHo flagship to drive engagement with Gen C and young millennials.
• Channel Strategy: D2C (Direct-to-Consumer) is the fastest-growing channel, leveraging data-driven retention and new customer acquisition; wholesale partnerships (Zalando, Macy's, Amazon, Tmall) are being deepened through shared consumer data.

Market and Competitive Landscape:

• Calvin Klein and Tommy Hilfiger are top-five globally in all competing regions, described as "beloved and desirable" brands distinct from generic market players.
• Target demographic is Gen Z and young Millennials, specifically "Status Shoppers" and "Style Enthusiasts" who comprise roughly 40% of the total market.
• Calvin Klein holds the #1 social media engagement in the global fashion sector; Tommy Hilfiger ranks #3 in reach.
• Competitive advantage derived from a unified brand DNA that allows for consistent global execution while adapting to local cultural trends.

Risks and Challenges:

• Inventory Constraints: High demand for best-selling styles (particularly in denim) has outpaced inventory availability, leading to stock-outs in key markets.
• Macroeconomic Volatility: European markets face challenges due to geopolitical instability (Middle East conflict) and general consumer sentiment weakness, requiring more aggressive execution to maintain growth.
• Operational Transition: The recent full reintegration of women's wholesale in North America involved heavy lifting and execution challenges which, while overcoming, required significant time and resources.
• Execution Risk: Success depends on the company's ability to scale marketing activation from the "upper funnel" (brand awareness) down to the "floor level" (store execution and inventory availability).

Management Commentary and Tone:

• Tone: Highly confident, optimistic, and disciplined; emphasizes the transition from a decentralized organization to a globally unified, systematic growth model.
• Leadership: CEO Stefan Larsson highlights the importance of "systematic repeatable growth" and deep consumer research; CFO Alexis Rollier (formerly Sephora CEO) focuses on financial discipline, margin expansion, and operational efficiency.
• Key Message: Brand relevance and product strength will win regardless of macro conditions; the focus is on amplifying the "5 A's" (AI, Assortment, Activation, Affordability, Agility).
• New Leadership: Rollier notes the benefit of connecting Sephora's operational excellence to PVH's brand power, aiming to make the strategy "faster, cheaper, and more efficient."

Analyst Questions and Answers:

• Question on Sephora Learnings: Rollier confirmed that PVH is transitioning from a decentralized structure to a globally consistent one, leveraging shared capabilities to improve time-to-market and profitability, similar to her experience at Sephora.
• Question on Licensing: Management clarified that while licensing is a high-margin recurring revenue stream, the primary strategic move is reclaiming control of the core brand proposition (especially women's wholesale in NA) to strengthen the "flywheel" before scaling licensing partners.
• Question on Macro Impact: Larsson noted that despite tough European macro conditions, e-commerce and D2C grew sequentially, proving the resilience of the brand's core consumer segments.
• Question on Product Strategy: Management identified "Hero Categories" (underwear/denim for Calvin, sweaters/outerwear for Tommy) as the foundation for growth, with marketing and store layouts now fully aligned to these specific product strengths.

Other Key Points:

• Soho Store: The SoHo location is being used as a "laboratory" for testing new concepts like customizable underwear packs and increased denim/underwear visual merchandising, showing strong results.
• Marketing Activation: Shift from broad brand campaigns to specific category activations (e.g., "Feel the Fit" denim campaign) driven by celebrity endorsements and fashion show talent dressing in current season inventory.
• Consumer Insight: Deep consumer research indicates the brands have built significant strength with the "next generation" consumer, who values style, brand identity, and experience over generic offerings.
• Future Roadmap: The company is in the early stages of a new growth phase, having recently completed the heavy lifting of team building and capability creation to support systematic scaling.