PVH Continues Brand Elevation and Efficiency Efforts, but Consumer Demand Is Shaky

Once known as a producer of midtier men's shirts, multibrand apparel and accessories marketer PVH transformed itself by purchasing fashion brand Calvin Klein in 2003, Tommy Hilfiger in 2010, and Calvin Klein licensee Warnaco in 2013. In recent years, it has sold most of its smaller brands to focus on Calvin Klein and Tommy Hilfiger. Although these two brands are well-known worldwide, we do not believe that either has sufficient pricing power or competitiveness to provide an economic moat for PVH.