Prominence and underwear: PVH's focus for Calvin Klein and Tommy Hilfiger

Calvin Klein and Tommy Hilfiger are to become two of the world's most desirable lifestyle brands. This long-term goal has been set by PVH Corp, the US parent company of the two labels.

“The second quarter marked another step on our multi-year journey to unlock the full potential of Calvin Klein and Tommy Hilfiger and to gradually build them into the world's most desirable lifestyle brands,” PVH CEO Stefan Larsson said in a conference call with analysts on Wednesday.

To achieve this despite rising US tariffs and macroeconomic uncertainties, the group is focusing in particular on icons, both in the form of prominent faces and within key product categories. But how exactly is PVH implementing this strategy for Calvin Klein and Tommy Hilfiger?

Calvin klein: Underwear and the power of pop culture

Calvin Klein is going back to its roots with underwear. This segment is booming, particularly in menswear. Since the launch of the Icon Cotton Stretch Hero programme, accompanied by a global campaign featuring singer Bad Bunny, the brand has not only gained international attention but has also achieved double-digit sales increases in the underwear sector.

“It has been incredibly successful, and this segment contributes significantly to sales in all regions,” Larsson said. “The combination of a strong product segment, innovative products and a high-profile campaign with globally relevant talent is a repeatable model that we know works.”

The campaign has not only increased brand awareness but has also noticeably increased traffic in stores and online. Reason enough for the brand to build on this success and now transfer the strategy to the women's line. The new Icon Cotton Modal collection will be launched for women in the autumn and will also be supported by a prominent campaign figure.

In the equally important denim segment, Calvin Klein is focusing on fits that pick up on the trend towards looser silhouettes. This seems to be working. In the last quarter alone, the brand recorded an increase of 19 percent in the fashion denim sector. This is accompanied by a new fit guide and a social media campaign with K-Pop star Min You, which has already achieved record engagement, according to the CEO.

In addition, the brand is working to link the collections more closely with the mainline to amplify the so-called halo effect. Creative director Veronica Leoni, who took over responsibility for the revival of the ready-to-wear division in May 2024, will demonstrate this with her second collection at New York Fashion Week, according to PVH.

Sport and 90s nostalgia as lifestyle levers at tommy hilfiger

Similar to Calvin Klein, Tommy Hilfiger is also focusing on cultural relevance, but with a clear focus on sport and entertainment. This was most recently visible in the Hollywood production “F1 The Movie”, in which the brand was prominently placed. At the same time, the limited Apex GP range, which was produced for the film, is ensuring high sales. Partnerships with Cadillac in the Formula One environment, as well as with the US SailGP team, reinterpret the brand's sporting DNA.

In addition, classic lifestyle campaigns are being implemented, most recently with 90s supermodel Claudia Schiffer and actor Nicholas Hoult. Product extensions such as the new Dress Casual category in menswear or the revival of Tommy Girl are opening up further target groups.

“Tommy Girl has been a fixture in pop culture since the 90s, and we are leveraging the deep consumer love for the Tommy DNA,” Larsson said. In North America, more than half of the buyers of the Tommy Girl capsule were new customers on the website, one-third of whom made another purchase within 30 days.

Radiance as a counterweight to US tariffs?

Despite all the cultural radiance, tariffs remain a factor of uncertainty. Chief financial officer Zach Coughlin explained: “The impact of tariffs will be more pronounced in the fourth quarter as new rates take effect and the timing effect of sell-through plays a role.”

Nevertheless, the company is optimistic and convinced that it is well positioned to navigate the volatile tariff situation. “We have a strong, globally diversified revenue base, 70 percent of our revenue comes from outside the US, and we work closely with an established network of global sourcing partners in more than 30 countries,” Larsson said.

PVH is also working on process simplifications, technology stack, distribution and European structures to expand margins in the long term. At the same time, marketing investments will increase significantly again in the second half of the year, as the second quarter showed how well the mix of product innovation, mega talent and full-funnel marketing works. CFO Coughlin stressed that the higher marketing expenses in the third quarter would lead to a temporary burden on the selling, general and administrative expense ratio in the short term. “But in the fourth quarter, we will see the full leverage effect again when the savings from Growth Driver five fully come through.”

“We have two of the most iconic brands in the world, we are investing in relevance and desirability, and we know this drives long-term growth and pricing power,” Larsson summarised. Even if the coming quarters remain characterised by tariffs and fluctuating consumer demand, PVH is sticking to its strategy of prominence and charisma.

This article was translated to English using an AI tool.

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