Calvin Klein and Tommy Hilfiger, two of the world’s leading global fashion brands under PVH Corp., have shown mixed results in their digital commerce performance in recent quarters.
According to PVH’s Q2 2024 financial report, the company’s digital commerce revenue dropped by 6.4 percent to $180.7 million. This decline was primarily attributed to strategic reductions in Europe, part of a broader effort to streamline operations. At the same time, total revenue for Q2 2024 decreased by 6 percent to $2.074 billion, as the company forecasted a 6 percent reduction in full-year 2024 sales.
Looking at 2023 figures, PVH’s total revenue reached $9.217 billion, up slightly from $9.024 billion in 2022. However, the digital commerce segment, a key area for growth in fashion, remained volatile. After a decline in 2022 to $722.7 million, digital revenue rebounded to $797.3 million in 2023, accounting for about 20 percent of PVH’s total revenue that year. While digital commerce revenue showed positive growth overall, the recent dip in Q2 2024 indicates ongoing challenges.
Tommy Hilfiger, one of PVH’s flagship brands, has been heavily invested in digital marketing strategies. In 2023, the company spent approximately $325 million globally on advertising and marketing, with a significant portion allocated to digital media.
Around 20 percent of these expenses were funded by Tommy Hilfiger’s licensees and other authorized users of the brand, highlighting the collaborative nature of its marketing efforts. Tommy Hilfiger’s “F.A.M.E.S” strategy — Fashion, Art, Music, Entertainment, and Sport — drives its global communications, positioning it as a cultural influencer while leveraging digital platforms for exposure.
In terms of sales, PVH reported a 9 percent increase through its direct-to-consumer distribution channels in 2023. Notably, sales through its directly operated digital commerce businesses saw a 10 percent increase, indicating strong demand and adoption from online consumers. This growth underscores the importance of digital channels to PVH’s overall strategy. Sales via digital channels represent almost 20 percent of its total revenue.
As PVH continues to invest in digital infrastructure, including cloud computing, IT upgrades, and warehouse enhancements, capital expenditures are expected to rise from $245 million in 2023 to $300 million in 2024. These investments, aimed at improving e-commerce platforms and distribution efficiency, signal the company’s commitment to bolstering its digital presence.
Ester Jimenez is the Chief Technology and Information Officer of PVH, responsible for developing and driving a technology and systems strategy that puts innovation and efficiencies at the forefront to solve business needs and elevate the consumer experience.
While Calvin Klein and Tommy Hilfiger have shown positive digital growth, particularly through their own digital commerce platforms, challenges remain in key markets such as Europe. PVH’s ongoing efforts to optimize its digital strategies will be critical in ensuring sustained growth and maintaining their competitive edge in the fashion world.
Baburajan Kizhakedath
