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IN PERSONALLEN SIRKIN

PHOTO BY JENNA GREENE

THE EVOLUTION OF PVH

Mr. ShirtmanPVH Corp. president Allen Sirkin, who will retire in

June after a 48-year career in the industry, has been

instrumental in the company’s transformation from

a dress shirt manufacturer into a $6 billion apparel

industry powerhouse of designer labels, premium

sportswear brands and classifications.

April 19, 2012

IP2 Men’s Week: IN PERSON

The Sirkin StoryWWD THURSDAY, APRIL 19, 2012

by JEAN E. PALMIERI

ALLEN SIRKIN lives for change.Over the course of his 30-year

career with PVH Corp., Sirkin has been instrumental in help-ing the company transform from a small dress shirt manufacturer into a $5.89 billion global power-house with tentacles that reach into nearly every corner of the global apparel business.

According to PVH chief ex-ecutive officer Emanuel Chirico, Sirkin “has been instrumental in making us the world’s larg-est dress shirt company and has taken our dress shirt group to record levels of growth and profitability. Allen has overseen much of our transformation from a one-brand dress shirt company to the source of some of the most famous and best-selling brands of dress shirts in the department store, midtier department and specialty store channels of distribution.”

He was also front and center in the company’s negotiations to acquire the Calvin Klein and Tommy Hilfiger brands.

At PVH’s annual sharehold-ers meeting on June 21, ev-erything will change for him once again. That’s the date that Sirkin, president and chief op-erating officer of the New York-based company, will retire and embark on the next chapter of his life.

“Everyone comes to the end of their journey,” he said. “I’ve been blessed with a great career and I’m delighted. If you’re sad, you shouldn’t retire. I look at this as just another leg to my trip.”

That trip started in Philadelphia, where Sirkin was born into a family that manufac-tured men’s suits and sport coats under contract for established brands including College Hall, McGregor and Stanley Blacker.

“When I was growing up, I didn’t think much about what I was going to do,” he said. But after working in the family’s clothing factory during the sum-mers, he knew what he didn’t want to do, and that was work in the family business.

Instead, he opted to enter the Philadelphia Textile Institute working toward a degree in tex-tile management and market-ing. “But I still wasn’t sure, so I paused for a while before con-tinuing my education in the mas-ters program at Temple University in industrial management.”

To pay for his college educa-tion, Sirkin became a full-time teacher in Philadelphia’s public school system, attending Temple for a semester and then working for a semester. He quickly real-ized that he wasn’t cut out for a career in teaching either and decided to take the plunge and move to New York.

“I was offered several jobs, including one at Phillips-Van Heusen,” he said, which he had been advised was “a great pro-gressive company and the best one to get started with.”

He took an entry-level job there in 1964 as a merchandising assistant, working under Seymour and Larry Phillips, whose family started the business in the late 1800s. PVH’s roots date back to 1881 when Moses Phillips, a Polish-born pushcart peddler, began selling shirts sewn by his wife, Endel, to coal miners in Pottsville, Pa. Success followed and the company expanded to New York City. At the same time, John Manning van Heusen, a Dutch immigrant, created a new process that fused cloth on a curve, fashioning a “soft-folding” collar that captured the stiff-col-lar look popular at that time, but with a more comfortable fit. In New York, van Heusen met with Moses’ son, Isaac Phillips, who bought the U.S. patent for the collar, giving birth to the Phillips-Van Heusen alliance.

By the time Sirkin came to PVH, the company had capitalized on its strengths and had grown into one of the country’s leading dress shirt manufacturers.

Still, Sirkin said, “I wasn’t sure what to expect. I had never worked for any company or in the New York apparel industry. It was hard work, but it was a great learning experience.”

For Sirkin, it was only the first chapter in his business career.

“I look at my career like a novel with many chapters,” he said. “It has a beginning, a middle and hopefully a happily-ever-after ending.”

He spent three years at PVH and was promoted about a half-dozen times, he said, eventually being named boys’ wear mer-chandising manager. Although he liked working for the com-pany, he wasn’t making enough money to support his growing family. “So I made the very dif-ficult decision to leave in search of upward mobility. The indus-try was growing and there were plenty of opportunities.

“It was the toughest decision I ever made,” he added. “When I joined, PVH was a $50 million company. When I left, it was a $100 million company — and growing.”

He joined Manhattan Industries, another large dress shirt manufacturer, as merchan-dise manager of sportswear and eventually rose to vice presi-dent. “It was a great six years,” he said. “I really grew, learned more and continued to grow. But I felt I needed more exposure than running a sportswear divi-sion of a dress shirt company.”

His next stop was McGregor, which was one of the largest

{Continued on page 4}

“I LOOK AT MY CAREER LIKE A NOVEL WITH MANY CHAPTERS. IT HAS A BEGINNING, A MIDDLE AND

HOPEFULLY A HAPPILY-EVER-AFTER ENDING.”

—ALLEN SIRKIN, PVH CORP.

Retiring president Allen Sirkin has played a key role in the metamorphosis of PVH during his three-decade career.

PHOTO BY JENNA GREENE

CONGRATULATES

ALLEN SIRKIN&

OUR DEAR FRIENDS ANDPARTNERS AT PVH

IP4 Men’s Week: IN PERSONWWD THURSDAY, APRIL 19, 2012

sportswear companies in the industry at that time. He went in as vice president of sports-wear and was soon elevated to executive vice president of the corporation. “It was financially strapped but to the consumer it was a great brand,” he said. “We managed to hold it together and grew the company to record sales. But it still wasn’t enough.”

He exited McGregor and reen-tered the kids’ business, joining Rob Roy as head of merchandis-ing. Being in the children’s wear business at that time was fun, he recalled, with a variety of li-censing opportunities for such household names as Superman, “Welcome Back, Kotter” and Fonzie. “It was a youthful com-pany, very energetic,” he said. But after a “successful run,” the family-owned company decided to sell. “Myself and the team at the time were unable to buy it, so it was time to move on,” he said.

Next up was Puritan Sportswear. “It was a great opportunity for me to run a sweater company,” he said. “It was a distressed business, but I thought it was fixable.” It also taught Sirkin that he could mas-ter a turnaround situation. “We took a company that was under-performing for some time and convinced those who stayed that we could succeed if they execut-ed the vision. And it worked. We actually turned it into the larg-est and most profitable sweater company in the industry and re-gained a leadership role.”

Despite the success, Sirkin was ready for his next chapter. “I wanted something a little smaller and less corporate,” he said. “So I went to Pony Apparel to man-age a startup. They were in the footwear business and asked me if I would come on board to build a sportswear component to com-plement the footwear. So I did.” It wasn’t long after he arrived, however, that the company was sold and Sirkin decided it was time to stop bouncing around and look for a little more stability.

It was then that his career came full circle, bringing him back to where it all began — PVH.

“It was time to come back,” he said. “Rather than taking the entrepreneurial road, I wanted to come to a solid company and participate in the long-term

growth strategy. He rejoined as president of the company’s de-signer group, which included dress shirts and sportswear. The year was 1985 — and the apparel industry had changed a lot dur-ing his time away from PVH.

“In the years leading to my return, the market was in tran-sition,” he said. “The company had 10,000 specialty store and regional department store ac-counts when I joined the first time, but when I went back, it had consolidated to basically 125 top national and regional department stores. The special-ty store era was ending at that point. And the account list keeps shrinking. The big are getting bigger and it’s happening with great speed. Those 125 stores have become a dozen today.”

Although the industry had changed, the company was still being operated by Seymour and Larry Phillips, and for Sirkin, it was sometimes like “being in a time warp. It felt good, but I saw an opportunity to change.”

By 1991, Van Heusen had be-come the number-one selling dress shirt in the country after

years of lagging behind Arrow, a brand it eventually acquired in 2000, and the Phillips family was reluctant to branch out too much. Sirkin’s idea to expand PVH’s reach was met with resis-tance and Sirkin said he was a “lonely voice.

“I challenged the company to move beyond Van Heusen and use the skill we had as a dress shirt company to expand our reach and create a diversified portfolio,” he said. “It wasn’t an easy sell. The Phillips family legacy all revolved around Van Heusen. But I believed we had the unique skills to develop an umbrella business. We needed to be in the sportswear business, and create the same model that we had in dress shirts,” Sirkin said, adding that the sportswear market is “15 times the size of the dress shirt market. So we restructured the company and began to acquire brands.”

In 1995, PVH purchased Crystal Brands Inc.’s apparel group, adding the Gant and Izod labels to its stable. Izod remains a key brand in the portfolio today and Gant was “cleaned up

and sold,” Sirkin said. “We sold Gant to its European licensee and focused on Izod.”

Even so, Sirkin said, it wasn’t long before PVH realized that it needed to explore markets out-side the U.S. “And along came Calvin Klein,” he said. “We rec-ognized that globalization as a strategy for any corporation was important. And we needed ve-hicles to address that.

“It was a redefining moment for the company.”

The brand’s owners, Calvin Klein himself and his partner Barry Schwartz, took some con-vincing, however. Sirkin re-called them asking: “Can these people who manage moderate and upper-moderate brands do designer?” Ultimately, PVH won out over VF Corp., snagging the brand in 2003 for $420 million in cash, with additional payouts of as much as $270 million.

“When we bought the com-pany, it was a $2 billion inter-national brand,” Sirkin said. Today, global retail sales are around $8 billion.

But PVH’s growth story wasn’t finished.

“We knew we needed to con-tinue to grow and diversify our portfolio,” he said. “And we had the opportunity to make a run for Tommy [Hilfiger].”

Once again, PVH managed to convince the brand’s owners, the private equity firm Apax Partners, that it was the right choice, and in March 2010, it spent $3 billion to acquire the company. The com-pany had helped fund the acquisi-tion of the Calvin brand.

“We added another interna-tional brand and we went from

being a $50 million company in 1964 to a $6 billion international corporation today,” Sirkin said. “We look at things differently. Our business model is a combi-nation of selling, wholesale, re-tail and licensing. So our sales reach through licensing and retail is about $16 billion,” he added of the retail value of all PVH brands and licenses.

Looking back at PVH’s dra-matic transformation, Sirkin said it’s been a “remarkable ride, and it’s not over yet. My chapter may be coming to an end, but the company is 131 years old and some of our brands are even older. Many other companies and brands have come and gone, but we have survived and prospered.”

He attributed it in part to “re-specting our heritage while em-bracing change and innovation.” He also singled out former chief executive officer Bruce Klatsky as key to positioning the com-pany where it is today. Klatsky is considered the architect behind the purchase of the Calvin Klein brand. “Bruce was the first non-Phillips person to run the com-pany. And the leader when we bought Calvin,” Sirkin said.

Not long after the Calvin ac-quisition, Klatsky stepped down as ceo and was succeeded in that role by Mark Weber. His tenure at the top was short-lived and Chirico was elevated to the ceo post in 2006.

Sirkin assumed that his time at PVH would end once Chirico took the corner office. He was 65 years old, had had a long, fruit-ful career with the company, and

{Continued from page 2}


“I CHALLENGED THE COMPANY TO MOVE BEYOND VAN HEUSEN…TO EXPAND OUR REACH AND CREATE

A DIVERSIFIED PORTFOLIO.”

— ALLEN SIRKIN

Sirkin with Jack Nicholson...

...with Mark and Jim Wahlberg...

...as Father of the Year...

...and with his family.

Donald J. Trump

and

The Trump Organization

congratulate

Allen Sirkinon an extraordinary career

and partnership

IP6

was ready to step aside so Chirico could bring a new team on board.

“I view a career like it’s high school,” he said. “You graduate and you go home. And others come up with new innovative ideas.”

To his surprise, Chirico asked Sirkin if he would stick around a few more years.

Chirico called the decision to have Sirkin serve as president and chief operating officer “very natural.” Their management styles are complementary, with Chirico’s expertise in operations and finance, and Sirkin’s in sales, merchandising and marketing.

Sirkin calls Chirico a “great manager” with the skill to ex-ecute and the ability to commu-nicate the company’s message to Wall Street. “But it’s not a one-man parade,” he said. “This company is filled with thousands of committed, talented people.”

One of those people is Sirkin’s son, David, president of PVH’s neckwear division.

Allen Sirkin laughs when he says his son was also very un-sure what he wanted to do with his life — “like his dad.” After graduating from Philadelphia University with the same degree in textile merchandising and marketing, he came to New York City “looking for guidance,” and started researching the apparel industry. “Having a father in the business is a blessing and a curse,” the elder Sirkin said.

David Sirkin went first to Milliken & Co., followed by Galey & Lord, but his dad ad-vised him to look elsewhere. “The textile industry in America is not where you want to be,” he said. “You probably want to find your way into wholesale.”

The younger Sirkin took the advice, joining Randa Corp.,

a leading neckwear compa-ny. “Then his father screwed things up and bought his num-ber-one competitor, Superba,” Allen Sirkin said with a chuck-le. Superba’s ceo, Mervyn Mandelbaum, told Sirkin that his son had been a “ferocious com-petitor” and asked if he could approach him about joining PVH.

The answer was yes. In addition to David, Sirkin

also has a daughter, Ami, whom he called the “Sirkin with a heart. She’s a special ed teach-er.” And through it all, over the past 47 years, has been his wife, Bonnie. “It takes a really great woman, an understanding woman, to work with you and partner with you and allow you to do all the things you need to do to build a career in this industry,” he said. “It has been years and years of hard work and I couldn’t have pulled it off by myself.”

Although he acknowledges that the apparel industry is now “part of my DNA,” he doesn’t expect to remain too deeply involved with it when he retires in June.

“There are things I’d like to do,” he said. “I’m obsessive-compulsive and when I commit to something, there’s not a lot of oxygen left to do other things.”

He’ll play golf, spend time with his four grandchildren and enjoy life. He doesn’t plan on taking another full-time job but will continue to serve on a few boards and may even invest in some business ventures so he has “something to tinker with.”

“I’d like to stay connected to industry, it’s in my blood,” he continued. “So I’ll find ways to contribute, maybe do something from a consulting standpoint if someone wants my input.”

He also expects to be more involved with Philadelphia

University, where he’s served on the board for the past 14 years — a role that allows him to indulge his passion in kids and education.

“The cost of education today is obscene,” he said. “So we set up a scholarship fund to help” students in need.

“I believe in paying it for-ward,” he said. “I’m just a kid from Philadelphia who never dreamed where this would wind up. Many people have mentored me along the way. I can push the boundaries sometimes, but they helped keep me in line.”

He singled out Al Rothman, a merchandise manager at PVH and his first boss, who “let me grow outside my position and helped expose me. He taught me the business and value and in-tegrity as well.”

Bill McKenna, president of Manhattan Industries, also helped keep him on the straight

and narrow. “When I challenged the company to teach me, he took the challenge personally and exposed me to what a presi-dent does and what the key driv-ers were in his decision making. That was very helpful when I had my chance to make decisions.”

Sirkin said he’s “never been afraid to take risks. The bigger the challenge, the more I lock in on it. I think it’s OK to fail. They won’t shoot you, they can only fire you,” he said. “And you will live another day.”

It’s this never-say-no attitude that has helped him rise to the top of the game.

He recalls a Christmas card he received in 1964 with a say-ing that reached deep inside his soul. So much so that he actually had the saying printed on his business cards. “I cut it out, car-ried it in my wallet for years and felt I should share it with others.

“‘Most of us dislike changes,’” he recited. “We oppose them. Every improvement ever made was made reluctantly. Nothing new is considered practical or possible until someone with broader vision than our own does things that can’t be done, gets better results by methods that won’t work.’”

He set the card down, and added: “I believe I’m an agent for change. Part of my spin all the way through has been to get the teams to embrace change. As a kid, my father used to tell me, ‘You don’t know what you don’t know.’ And that’s true. You shouldn’t be afraid of anybody and you should take the job nobody else would take if you see value in it.”

Over the course of his career, he hasn’t embraced the spotlight, preferring instead to steer things from behind the scenes. “My friends refer to me as ‘The Wiz’ — the guy behind the curtain.”

Sirkin knows that not every-thing he’s done in his career has been perfect. “What would I do differently?” he asked. “I didn’t have much balance in my life. I’m a committed workaholic, and that comes at a price — family and kids.”

He recalls when the National Father’s Day Council approached him about being one of its Fathers of the Year. “It’s the one award I refused to accept,” he said, saying he didn’t think he was worthy. But after getting the blessing from his children, he took the award.

He admits to being motivated by the “fear of failure or the de-

sire to succeed — they are one in the same.

“The world is full of rams and lambs,” he continued, “and we look to the rams to lead the way.”

Although clearly a ram, Sirkin said his management style is low-key. “I’m a flatliner,” he said. “What you see is what you get and what I say is what I mean. I’m as steady as they come. I’m black or white, in or out, there’s no gray.

So what does he believe will be his legacy at PVH after his 30 years of service?

Sirkin said he hopes he can say that he left the company in a better place than it was before he arrived. “That’s the perfect infinity concept,” he said. “I’m just a bit player in the mosaic of the business.”

He concluded: “I came, I gave it an honest shot and I cared. And I leave still caring.”

Men’s Week: IN PERSONWWD THURSDAY, APRIL 19, 2012


Allen Sirkin with Eli Manning...

...and with NFL Hall of Famers.

IP8 Men’s Week: IN PERSON

View From the TopPVH CEO Emanuel Chirico on 25 years of working with Allen Sirkin.

WWD THURSDAY, APRIL 19, 2012

by DAVID LIPKE

“HE’S THE HEART and soul of the heri-tage business,” said Emanuel Chirico, chairman and chief executive officer of PVH Corp. of the retiring Allen Sirkin. “We call him ‘the king of dress shirts.’”

The two executives have known and worked together for a quarter century, first meeting when Chirico was with Ernst & Young as PVH’s outside auditor. “I knew him for about five years before I joined the company. I was the outside consultant, and Allen was running the entirety of the wholesale group as vice chairman,” recalled Chirico.

In 1993, Chirico joined PVH as con-troller and in 1999 was promoted to chief financial officer, again working closely with Sirkin under then-chairman and ceo Bruce Klatsky. Chirico and Sirkin were both on the operating committee of the company then. “We had a lot of interplay right from the beginning. We were con-stantly working together on the position-ing of the company,” said Chirico.

In 2005, Chirico was named president and chief operating officer of PVH. Eight months later, he was elevated to ceo after the surprise exit of Mark Weber — who is now chairman and ceo of Donna Karan International and ceo of LVMH U.S. — from that position. “As you might recall, when I became the ceo it wasn’t under the best circumstances. It wasn’t as fully planned as we would have liked,” said Chirico. “I had to make a decision who would sit in the [president and coo posi-tion] and it was a very natural decision that Allen would sit in that chair.”

Chirico noted that the two executives’ skill sets are complementary, with himself experienced in operations and finance and Sirkin excelling in sales, marketing and product. “It was a great marriage from that point of view,” pointed out Chirico.

Apart from that harmony of talents, Chirico also admired Sirkin’s approach to the job, during a time when several execu-tives were vying for the role. “I wanted to give myself some time and not rush into a decision that was so important. A lot of people were in to see me, everyone was tell-ing me what I should do,” Chirico recalled. “One thing that was not lacking was opinion about what would be best for the company.

“Allen was the only one who came in and said, ‘What do you really think you need? What does the company need from your point of view?’ He became more of a counsel,” said Chirico. “He wasn’t in there politicking. That’s when I knew it was the right decision, given his maturity and how he approached it.”

Under Chirico, Sirkin concentrated on the company’s heritage brands divi-sion, which encompasses brands that

were owned — Izod, Arrow, Van Heusen, Bass and Eagle — in addition to the li-censed dress shirt and neckwear busi-nesses. “Allen has really driven sales, particularly on the wholesale side of the business, given his relationships with key retail partners like Macy’s, J.C. Penney, Kohl’s, Dillard’s and Belk,” said Chirico. “Allen has been front and center with those relationships.”

Sirkin also played key roles in the acqui-sitions of Tommy Hilfiger in 2010, Superba in 2006, Arrow in 2004 and Izod in 1995. With the Hilfiger deal, Sirkin attended the first meeting of PVH executives at Tommy Hilfiger headquarters in Amsterdam and took part in the due diligence process.

“We were selling ourselves to the Tommy Hilfiger team as much as they were selling to us,” said Chirico. “The two teams really had to work well together, and Allen’s style and his experience and the way he carries himself was a big part of getting us through and making the Tommy team feel comfortable about our business and management structure.”

Chirico called Sirkin a “right brain” thinker, or holistic and intuitive, while he himself is more “left brain,” or linear and logical. “Allen is not a micromanager. He’s a very big-picture guy and strategic,” explained Chirico. “When he’s thinking about the marketing dynamic, I’m think-ing about EBITDA.”

Sirkin is not being replaced at the com-pany, but rather his responsibilities are being split between Ken Duane, ceo of wholesale apparel, and Michael Shaffer, chief financial and operations officer.

Personality-wise, Chirico pointed to Sirkin’s calm, unflappable demeanor as an effective counterweight to his own volubility. “Allen never gets flustered. I can get loud and can wear my emotions on my sleeve,” admitted Chirico. “Allen is always a calming effect. I’ve seen it in numerous cases in a negotiation or deal. He’s able to take the tension out of the room and get the deal done. He doesn’t take any of it personally, it’s business — like the Godfather said.”

Sirkin was particularly pivotal to the negotiations that brought leading neck-wear maker Superba Inc. into the PVH fold six years ago. The deal almost fell through due to disagreements on price, said Chirico. “There were a couple of times I just didn’t think it was going to happen, if it weren’t for Allen pulling it back together and getting us and the man-agement of Superba to focus on what we both wanted to accomplish,” he noted. “Allen is good at articulating both sides and bringing everyone together. He can take complex issues and bring it to a point where everyone can understand them.”


“WHEN HE’S THINKING ABOUT THE MARKETING DYNAMIC, I’M THINKING ABOUT EBITDA.”

— EMANUEL CHIRICO, PVH CORP.

Marketing images for PVH’s heritage brands.

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Chirico credits Sirkin with basically inventing the licensed dress shirt model that propelled PVH into the leading posi-tion in that category, along with a similar model in neckwear. At last year’s annual meeting, Chirico noted that PVH com-mands a 47 percent share of dress shirts in department and chain stores and over 50 percent of all ties sold in the U.S.

The company’s Van Heusen is the top-selling dress shirt in department and chain stores in the U.S., followed by Arrow and Geoffrey Beene. The compa-ny’s other licensed brands in dress shirts and neckwear include Kenneth Cole New York, Kenneth Cole Reaction, Sean John, JOE Joseph Abboud, Michael Michael Kors, Michael Kors Collection, Chaps, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker, J. Garcia, Claiborne, Robert Graham, U.S. Polo Assn., Axcess and Jones New York.

“When he joined the company we were basically the Van Heusen dress shirt company, with some private label brands,” said Chirico, noting Sirkin was instrumental in securing the raft of li-censes that drives the business today.

“As the business has morphed and changed, he’s changed with it,” said Chirico. “We used to be 60 percent pro-duced in our factories in the U.S. Today, 100 percent of our shirts are imported from overseas, coming in from the Caribbean, from Southeast Asia, the Middle East.”

Looking back at the decades he has worked with Sirkin, Chirico pointed to the acquisitions of Calvin Klein and Tommy Hilfiger as game-changers that transformed PVH. Prior to buying Calvin Klein, PVH was “a well-operated, moder-ate men’s apparel company” principally operating in the U.S. Following that deal,

the company became “an international purveyor of a major brand,” said Chirico.

The Tommy Hilfiger deal accelerated PVH’s metamorphosis into a portfolio company, adding a European operation-al platform to its assets. “It took us to the next level. We weren’t just operating through a licensing model overseas [as with Calvin Klein.] Now, we are directly operating businesses in Europe and Asia,” Chirico pointed out.

The Calvin Klein and Tommy Hilfiger businesses are growing four times faster than the heritage division, said Chirico and together ring up more than 80 percent of the company’s profits today.

PVH is projecting 2012 revenues to be flat to up 2 percent, due to foreign currency translation and the company’s exit from the licensed Timberland sportswear business and the Izod women’s sportswear business. Revenue for the heritage brands business is expected to decrease 3 to 4 percent, due to the Timberland and Izod moves.

The Tommy Hilfiger business is expect-ed to be flat to up 2 percent while Calvin Klein is projected to grow 5 to 7 percent.

Chirico said moderate, main floor sportswear businesses like Izod have been under pressure, with costs up in excess of 15 percent last year and an overinven-toried position making it difficult to raise prices. “Izod really took it on the chin last year,” he noted.

At times, the heritage businesses that have been overseen by Sirkin can be overshadowed by the heft and glamour of the two megabrands that now domi-nate PVH’s holdings. However, Chirico is quick to point out that the heritage dress furnishings and sportswear businesses long provided the company with a sturdy foundation and steady cash flow. Some Wall Street analysts have floated the idea

that PVH could win a higher valuation multiple if it spun off or sold its less fash-ionable, more stolid heritage division — but Chirico dismisses the notion.

“If it wasn’t for the cash flows and the consistency of the heritage business, we wouldn’t own Calvin and Tommy today. I like the balance that the businesses bring to the more fashion-forward Calvin and Tommy brands,” said Chirico. “When the world was going through some really tough times in 2008 and 2009, the piece of our business that kept performing was our moderate, heritage brands. Consumers kept coming back, and we kept generating significant cash flow there.”

The heritage business provided a well-oiled operational platform to leverage the Calvin Klein and Tommy Hilfiger busi-nesses on, boosting growth for those two brands, added Chirico. “We have a plat-form in North America that is second to none in terms of operating, sourcing, lo-gistics and systems, and we delivered the benefits to those brands,” he noted.

What’s more, PVH works with its de-partment store customers as a single com-pany, with Tommy Hilfiger, Calvin Klein and its multitude of owned and licensed heritage brands, which gives added lever-age to the full spectrum of those business-es. “Just the sheer size of the men’s side — with most of our major retailers we are the largest men’s supplier that they have — gives us a strong position with them and makes us important to them,” said Chirico.

Next year, PVH will take back its European ck Calvin Klein bridge busi-ness from Warnaco, and Chirico believes it can become a $500 million business. PVH is layering the ck Calvin Klein busi-ness onto its European Tommy Hilfiger

platform, which already operates an infra-structure of showrooms and merchandis-ing and marketing teams in all the major European markets.

In Europe, Asia and South America, ck Calvin Klein is the core brand marketed by PVH while in North America it’s the Calvin Klein white label better sports-wear brand, with the latter priced some-what lower than the former.

Looking forward at potential acquisi-tions now that Tommy Hilfiger has been in-tegrated and the balance sheet delivered ahead of plan, Chirico said the banking environment is conducive to deals but the wobbly global economy remains a draw-back. “Any kind of disruption, geopolitical or economic, I think could put pressure on consumers, and they will pull their spend-ing back. When running a large company, you want to be aggressive, but you also have to be cautious about protecting the assets of the company,” he explained. “It’s a tough environment to make judgments about how aggressive to be.”

An ideal acquisition by PVH would bring with it a potent operating platform in Asia or South America, to complement its strong positions in North America and Europe, em-phasized Chirico — a global goal that hasn’t yet been achieved by any apparel maker. “There is nobody in the industry that can say that today and I’d like to be in a position to say that we have that,” he said.

“Bankers are always coming in, bring-ing ideas and opportunities. You’d be amazed at some of the crazy ideas they come up with,” said Chirico. “They might be nice companies — but how do they fit in with what we do? It’s not just about buying something that will be accretive to earnings but about how it fits into the whole pie.”

Men’s Week: IN PERSONIP10 WWD THURSDAY, APRIL 19, 2012


THE CALVIN KLEIN AND TOMMY HILFIGER BUSINESSES ARE GROWING FOUR TIMES FASTER

THAN THE HERITAGE DIVISION, RINGING UP MORE THAN 80 PERCENT OF PVH’S PROFITS.

The Tommy Hilfiger

fall runway show.

The Calvin Klein business is projected to grow 5 to 7 percent this year.

KLEI

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by LISA LOCKWOOD

PVH CORP. and Calvin Klein Inc. have proven over the past decade they have the right chemistry.

Since PVH’s acquisition of CKI in 2003, global retail sales of products bearing the Calvin Klein name have catapulted from $2.8 billion in 2003 to $7.6 billion in 2011. CKI has provided PVH with not only a world-class design-er brand but the opportunity to market products both domestically and inter-nationally at higher price points and in higher-end distribution channels than its heritage brands’ offerings.

In an interview, Tom Murry, presi-dent and chief executive officer of Calvin Klein Inc., called the integration into PVH “historically smooth.” Generally, when mergers and acquisitions don’t work, it’s usually about the culture, he said. “We were very fortunate. The senior management team of PVH and the senior management team of CKI got along from Day One. It was a nice cultural blend of personality types.”

Bruce Klatsky, the former ceo of PVH who engineered the CKI acquisition, has been credited for being the main reason the brand’s owners, Calvin Klein and Barry Schwartz, agreed to sell. “Bruce was very passionate and tenacious and made it happen,” said Murry. After two years of negotiations, PVH purchased CKI for $420 million in cash, with additional payouts of as much as $270 million. Schwartz left right away, but Klein remained as a con-sultant for three more years.

One of the stipulations for the deal was that PVH maintain a separate and distinct culture for CKI, keeping largely intact the headquarters at 205 West 39th Street in New York City and the manage-ment headed by Murry. When the com-panies merged, the front of CKI’s house was basically left alone. It was the back-end functions, such as IT, manufacturing, distribution and finance, that were inte-grated into PVH.

“It’s a wholly owned subsidiary, but somewhat autonomous,” said Murry.

The ceo said that, in the beginning, his executives met frequently with the PVH management team. “You get to know people over time. They understood the strength of the Calvin Klein brand and did research on that, not only in the U.S., but all over the world. They felt there was a very significant growth opportunity there, which obviously they were right about,” said Murry.

CKI operates as a licensing model, whereby Murry oversees some 40 domestic and international Calvin Klein licensees, in categories such as women’s sportswear, jeanswear, underwear, fragrances, tailored clothing, eyewear, men’s tailored clothing, women’s suits and dresses, women’s per-formance, men’s and women’s golf apparel, hosiery, socks, footwear, swimwear, jewel-ry, watches, outerwear, handbags, leather goods, home furnishings and accessories. Its largest licensees are Warnaco Group Inc., which in 2010 accounted for 42 per-cent of revenue; G-III Apparel Group Ltd., which accounted for 14 percent, and Coty Inc., which accounted for 12 percent. PVH, which reaps royalties from the sale of the Calvin Klein merchandise, had sales last year of $5.89 billion. According to PVH’s most recent 10-K filing, Calvin Klein had royalty revenue in 2011 of $273 million, up from $244.9 million a year ago.

In 2010, PVH acquired Tommy Hilfiger’s business for $3 billion. While CKI is bigger than Hilfiger in global re-tail sales, Hilfiger makes more money than CKI because Hilfiger is an operating business for PVH, while CKI is a licens-ing model, said Murry. Both companies have contributed to PVH’s strong stock performance. PVH, which was trading at around $12 at the time of the CKI acquisi-tion in 2003, is now trading for around $90 a share on the New York Stock Exchange. Hilfiger and CKI operate completely in-dependently of each other.

Murry reports to Emanuel Chirico, ceo of PVH, with whom he says he has a great relationship. He also has a strong relationship with Allen Sirkin, president and chief operating officer of PVH. “I con-sider him a friend as well as a colleague. His contributions over the many years of his career have been remarkable. He’s a class act. If it wasn’t for the success of what we refer to as the heritage business, PVH would not have had the where-withal to buy Calvin Klein. And he was responsible for the success of the heritage business,” said Murry.

Calvin Klein’s business today operates on three levels: the designer-level Calvin Klein Collection, the bridge ck Calvin Klein line and the better-priced Calvin Klein label, which generates the lion’s share of the busi-ness. For 2011, about 40 percent of CKI’s royalty, advertising and other revenues were generated

domestically, with the remainder coming from international.

In assessing growth prospects for the Calvin Klein business, Murry cited the Asian business as being a hot pocket of opportunity.

“The Asian business is very strong. The European business is soft in south-ern Europe, and better in northern Europe because the economy is difficult in southern Europe,” he explained. In 2011, he said the European and Middle East business, accounting for $2 billion in global retail sales, increased 13 percent; Asia, which generated $1.4 billion, grew 22 percent, and North America, which accounted for $3.9 billion, expanded by 11 percent. Specifically, China generates most of Calvin Klein’s Asian business ($356 million in retail sales), followed by Japan ($229 million) and Korea ($227 million). “You’re seeing solid growth in every region,” said Murry. He noted that the way retail is conducted in Asia varies by country. In China, it’s a combination of freestanding stores and multibrand stores, whereas in Korea and Japan, it’s more of a department store business.

Murry attributed the success in China to several factors. “We’re doing a lot of advertising in China. The economy is growing very rapidly and there are 300 million people in the middle class. The brand is very, very well known. We’re increasing our retail square footage dra-matically every year. It’s a combination of more retail exposure, a more affluent consumer, a strong brand, good product and good execution. All those fundamen-tals,” said Murry.

Murry noted that in all of the BRIC countries (Brazil, Russia, India and China), “we’re growing at or better than the rate of economic growth in that country.”

Opening freestanding stores around the globe is a key strategy for the brand, he said. Last year, Calvin Klein added more than 400,000 square feet of re-

tail square footage. “Sixty percent of that was in Asia, 30 percent was in Europe and the Middle East and 7 percent was in North America,”

said Murry. This was through CK, jeans and underwear stores.

The company ended the year with 754 regular price freestanding stores inter-nationally. This year it ex-pects to have more than 900 freestanding stores.

As reported, CKI plans to take its European CK Calvin Klein apparel and ac-cessories businesses in-house, effective in 2013. It will ter-minate its existing license agreements with Warnaco Group for the dis-tribution and sale of CK Calvin Klein apparel and ac-cessories and the operation of re-

tail stores. CKI is currently in discus-sions with Warnaco to ensure a smooth

transition and to decide the fu-ture of the stores. “We’re analyzing location by location together,” said Murry. PVH’s 2010 acquisition of Tommy Hilfiger provided the com-pany with a European operating

platform and distribution system. It is expected that the CK Calvin Klein European business has the potential

to reach about $500 million in sales in the next five to seven years.

Turning to the high-profile Collection business, designed by Francisco Costa in women’s and Italo Zucchelli in men’s, Murry admitted that it isn’t profitable. “It’s the brand builder and creates the halo for the brand,” said Murry. He said if one takes into account all the public-ity Calvin Klein generates (both through Collection and other lines) via fashion shows, red-carpet and editorial coverage, it accounts for more than $400 million in ACE (advertising cost equivalent). He said that editorial coverage has more “believ-ability” to consumers than advertising. But since Collection was brought in-house in 2009, “we’re seeing steady growth and steady improvement.”

“Now that we own and operate it, we’re heavily investing in it to bring it up to the level that it needs to be,” said Murry.

Murry said he never got any push-back from PVH on the costs of operating the Collection. “They got it from Day One. They supported the concept of bringing the business back in-house. They under-stood and understand the significance and importance to the overall Calvin Klein brand,” said Murry.

The Calvin Klein brand, which is known for its edgy advertising, is allocat-ing more of its budget these days to social media. In 2009, digital media accounted for only 1 percent of the ad budget. In 2011, that rose to 20 percent and will in-crease to 23 percent this year. The social media activities range from Facebook (its page has 3.9 million “likes”) and Twitter, to advertising on various Web sites.

“We keep growing the amount of ad-vertising we spend each year,” said Murry. “With digital growing, it doesn’t mean we’re doing less print. The whole pie is getting bigger. We spend more than $300 million a year on global advertising. We’ve been increasing every year, except for the reces-sion year [2009], where we kept it flat.”

Murry still believes that advertising is critical to the brand’s success. “My sense is that it’s still an important part of keep-ing the brand as strong as it is, relevant, fresh and innovative.” He said the compa-ny uses many of the same photographers and creative directors as it did when Calvin Klein was there.

Murry’s goal is to increase the CKI business to $9 billion in global retail sales in 2014. He plans to get there by continu-ing to elevate the brand image across every region of the world, continuing to innovate the product and increasing points of sale globally.


Keeping Calvin on the Fast Track The brand’s sales have more than doubled since its purchase by PVH in 2003.

A marketing image for

Calvin Klein Jeans.

A fall

runway

look.

Tom Murry

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BRILLIANT MARKETER INNOVATOR HUMANITARIAN GREAT FRIEND

MACY’S IS HONORED TO SALUTE

ALLEN SIRKIN FOR MAKING A LASTING DIFFERENCE IN THE APPAREL INDUSTRY

by WWD STAFF

LONDON — The $3 billion acquisition of the Tommy Hilfiger business in 2010 was one of the most recent home runs notched by PVH during Allen Sirkin’s tenure. That acquisition nearly doubled the size of the group — and gave it the firepower to ex-pand into Europe and the Far East.

“Allen played a critical role in making the deal happen and successfully integrat-ing the U.S. Tommy Hilfiger business with PVH,” said Fred Gehring, chief executive officer of Tommy Hilfiger. “We are very grateful for his involvement during this important time. He is a true gentleman.”

On Sirkin’s watch, PVH not only bought the Hilfiger name, but an international network of retail stores; multiple cat-egories of men’s, women’s and children’s businesses; an exclusive deal with Macy’s, and a strong foothold in the European and Asian markets. Over the past two years, that business has expanded rapidly world-wide — and in the Far East in particular. In the fourth quarter of 2011, the brand grew 15.8 percent, hitting $815.8 million, although PVH said growth was set to slow to a maximum of 2 percent due to unfavor-able foreign currency translation.

But last week Gehring was more bullish about the forecast for growth. “Business continues to be really, really strong almost everywhere now,” he said during an interview in Tokyo. “So if this continues, I would assume we should be able to ease up a little bit [on the fore-cast]. It’s a reflection of the concerns about the marketplace in general.”

The Tommy Hilfiger retail machine continues to steam ahead: In mid-April, the company opened an 11,000-square-foot flagship at the intersection of Omotesando and Meiji Dori, two of Tokyo’s busiest streets. The new store is the brand’s big-gest in Asia and its first true flagship in the region. In addition to stocking the full range of collections, the firm is offering its bespoke tailoring service for men, which allows customers to customize linings, pockets, buttons and other details on suits.

Later this month, Hilfiger is set to open an 8,380-square-foot anchor store in Osaka, Japan, and it has recently opened its larg-est store in Hong Kong, on Nathan Road. The Hong Kong unit spans 6,170 square feet over three floors. During the interview in Tokyo, Gehring and John Ermatinger, ceo for Asia, said Hilfiger is investing in both China and India. The Hilfiger brand is already present in 12 Asian countries with more than 900 points of distribution. The company recently took the business in-house in China, and inked a joint ven-ture partnership in India.

“Our eye is on a number of countries,” said Ermatinger. “We believe there is potential throughout the Asia region.” Gehring said it was too early to give spe-cifics on both China and India and the

company is taking a measured approach. “Everybody talks major numbers about these markets, specifically China, obvi-ously. Whomever I hear in the press or in presentations always talks China and a billion in one sentence. One way or the other, that’s clearly not going to happen to everybody. That’s just realistically impos-sible. And I think that as this market grows and expands and many, many new players come in, there’s going to have to be also a much greater level of care and attention to how you go into this market and what the approach should be,” Gehring said.

He said he hopes at some point in the “near future” to open a large store in one of the major Chinese cities and at that point Hilfiger will be able to clarify its outlook for the country. “We have definitely a strong growth outlook in China but to quantify it would be a little tricky right now.”

Last year, the Hilfiger brand rang up $5.6 billion in worldwide sales at retail, with distribution in more than 90 coun-tries. The brand that Tommy Hilfiger himself launched with the Indian fash-ion tycoon Mohan Murjani in 1984 en-dured a roller-coaster ride of ups and downs before arriving at its current ro-

bust position in the PVH portfolio. The company faced some existential threats over the years, including the implosion of Murjani’s holdings, which led to the brand being acquired in 1989 by Silas Chou and Lawrence Stroll, who most recently took Michael Kors public in one of the most lu-crative fashion initial public offerings in recent history.

In the Nineties, Hilfiger famously veered off course and embraced a contem-porary, urban look and audience, which boosted sales while muddling the brand message. But the company eventually dug itself out of that hole, and made a fresh start — in Europe. It was positioned at a higher price point with a more premium look than in the U.S. Upscale stores sold — and continue to sell — the brand on prime shopping streets in Europe and deliver a consistent message of preppy, all-Ameri-can designs with a twist.

Since returning to its roots, Hilfiger’s sales have steadily grown around the world, including Asia, Europe, Central America and South America, with each market responding to the preppy look in their own way. “If the Italians are wearing preppy in a very bright and colorful way, in Tokyo they are wearing pattern with pat-tern and tartan with argyle. In Santiago they are wearing very clean, slick silhou-ettes but it’s still preppy. In America, it’s very eclectic,” Hilfiger told WWD.

Last October, the Tommy Hilfiger Group inked a deal with the Walt Disney Co. for a limited edition capsule collec-tion of children’s wear for markets out-side the U.S. The Meet the Family cap-sule collection features a raft of Disney characters including Mickey and Minnie Mouse, Donald Duck and Pluto dressed in the Tommy Hilfiger spring children’s col-lection. The 10-piece capsule collection includes four T-shirts each for boys and girls, a sweater and a dress. Disney artists have drawn the characters wearing piec-es from the spring children’s collection.

The collection, which is for children rang-ing from 18 months to 8 years, launched in February at Hilfiger stores and whole-sale mainly in Europe, at stores including Selfridges, and in South America.

The brand’s positioning in the premi-um segment below luxury has been ben-eficial to its growth. “We’ve been able to break through difficulties in the financial crisis,” Hilfiger has said. “And we’ve been able to grow faster in various areas. We are still a status brand but still affordable and accessible.”

A maxim Hilfiger tries to impress on ad-vice-seekers is the importance of establish-ing an enduring style rather than chasing short-lived trends. “When you are branding and building a brand, remember that fash-ion is very much a part of it, but fashion is fleeting and style is forever,” he said.


Tommy Thriving Under PVH OwnershipThe designer label has been aggressively expanding its footprint in Europe and the Far East.

The new Tokyo store.

Fred Gehring

An ad image featuring “The Hilfigers.”

GEHR

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geo ff r eybeene . com

Celebrates

ALLEN SIRKIN

for his remarkable career and achievements with

PVH

and Humanity


by JEAN E. PALMIERI

IF IT WASN’T FOR Van Heusen, there would be no Tommy or Calvin — at least not for PVH Corp.

The revenue generated by the dress furnishings division, led by Van Heusen, the country’s largest-selling dress shirt brand, has provided the corporation with the stability and assets it needed to acquire two high-pro-file designer brands over the past decade. “If it wasn’t for the cash flows and the consistency of the heritage business, we wouldn’t own Calvin and Tommy today,” said Emanuel Chirico, chief ex-ecutive officer of PVH.

The corporation has been a factor in the nation’s dress shirt business since 1881, when Polish immigrant Moses Phillips started selling hand-sewn shirts to coal miners in Pennsylvania. What really put the company on the map, however, was when Moses’ son bought the U.S. patent for a soft-folding collar shirt from the Dutchman, John Manning van Heusen, in 1919.

Since that time, PVH has grown to become the nation’s largest dress furnishings pro-ducer, amassing an industry-leading 47 percent share of the dress shirt market in depart-ment and chain stores, and a 50 percent share of all neckwear sold in this country.

The business continues to be strong, buoyed by updates in sil-houette, pattern and color — a strength that was evident in the fourth quarter, when sales with-in the heritage dress furnishings business grew 8.5 percent to $145.6 million.

The company’s Dress Furnishings Group is an um-brella division that encom-passes both owned and licensed dress shirts, neckwear and un-derwear labels. The dress shirt group is made up of six owned brands — Van Heusen, Arrow, Eagle, Izod, Calvin Klein and

Tommy Hilfiger, along with 14 licensed brands, including Kenneth Cole New York, Sean John, JOE Joseph Abboud, Michael Michael Kors, Michael Kors Collection, Chaps, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker and Robert Graham.

“Geoffrey Beene was one of the first brands that we li-censed,” said Mitchell Lechner, president of the PVH Dress Furnishings Group, “while John Varvatos is one of the newest ad-ditions to our stable of brands. Each of our brands has its own design aesthetic and lifestyle, incorporating unique modeling,

fabrications, finishes and trims to engage and appeal to a wide range of customers.”

Price points for dress shirts, both owned and licensed, reflect that diversity, and range from $18.99 to $250 retail, he said. “Growth in this category is driv-en by newness and by continuing to engage and excite the consum-er with new fabrics, patterns, colors and modeling details,” Lechner added. “In addition to offering trend-right product, fit has also proven to be a key com-ponent for future growth. With regular, fitted and slim-fit dress shirts available, our consumers are able to find a dress shirt that

suits their physique and individ-ual sense of style.”

Within the neckwear group, there are the same six owned brands, as well as 30 licensed brands. “Jones New York, DKNY, Michael Kors, Ike Behar and Ted Baker are some of the brands that have been with us the longest,” he said. “Our newest additions are John Varvatos, Valentino, Robert Graham and Marc New York. Between our owned and licensed brands, we cover all tiers of distri-bution, offering price points from $14.99 to $135.”

The underwear group consists of three owned brands — Tommy Hilfiger, Izod and Van Heusen — in addition to three licensed brands: Geoffrey Beene, Chaps and Michael Kors. “We are continuing to grow our business by expanding our product offerings, adding new silhouettes and providing new fabrics options (luxurious and/or technical fabrics),” he said. “This provides us with a strong founda-tion to further expand our channel of distribution and drive sales.”

Lechner said that today un-derwear and socks are the hottest businesses in furnishings. “Shirts are good, neckwear is OK, but un-derwear and socks are on fire,” he said. The business is being driven by color, which men are embracing in large numbers.

With so many brands in its rep-ertoire, how does PVH differenti-ate between the labels? According to Lechner, it’s all based on the lifestyle of the brand.

“The lifestyle is determined by its aesthetic, price point and mar-ket that it appeals to,” he explained. “We strive to ensure that there is always a synergy

between our dress shirt and neck-wear offerings. Collaboration between these two divisions is essential to ensure the authentic-ity and aesthetic of each brand.” Owned and licensed brands are both managed in a similar man-ner, he added. “We have dedi-cated teams for each brand that specialize in sales, marketing, planning, operations, product de-velopment, design and field ser-vice. Our success has come from managing each label individu-ally based on its unique brand DNA and values. This strategy is essential to gain market share and afford us new opportunities for growth.”

Lechner has seen a lot of growth during his tenure with the company.

“I have been with PVH Corp. for 28 years,” he said. “The early acquisition of Izod [in 1995] and Bass [in 1987] changed the face of our company. The acquisition of Calvin Klein transformed who we are, while the most recent ac-quisition of Tommy Hilfiger has truly made us an international/global corporation. Throughout all of these changes, PVH Corp. has remained true to its core values. Central to our identity is a genuine commitment to corpo-rate responsibility, a fundamen-tal component of how we run our business that is directly linked to our strategies and practices.”

And through it all has been one constant, Allen Sirkin,

who is viewed as the archi-tect behind the creation of the company’s dress shirt li-censing model and the cata-lyst to its monumental shift from a one-brand dress shirt company to a multilabel ap-parel industry behemoth.

“I have worked with Allen for the past 27 years,” said Lechner. “Allen has always been an integral part of what we do at PVH Corp. His vi-sion and leadership have had a dynamic impact on our business and its success. Allen has the ability to look at situations from multiple per-spectives, which has allowed us to succeed in many forums.

His insight and positive outlook is something we all appreciate. Allen is the type of leader that is easy to respect and admire.”

A multitude of owned and licensed brands provide stability and positive cash flow for the corporation.

Dress Furnishings Remain Key Driver

“[ALLEN’S] VISION AND LEADERSHIP

HAVE HAD A DYNAMIC

IMPACT ON OUR BUSINESS AND ITS SUCCESS.”

— MITCHELL LECHNER, PVH CORP.

A DKNY marketing image.

Calvin Klein ties.

Geoffrey

Beene


1987: Sold Joseph & Feiss, whose roots are in tailored clothing, and its 45-unit chain for $41.4 million to division managers.■ Acquired G.H. Bass & Co. from Chesebrough-Pond’s Inc. for $79 million; PVH’s balance sheet gets recapitalized.■ Net income is $30 million on total revenues of $500 million.

1989: Acquired Windsor Shirt Co., a private label retail chain comprised of 39 stores.

1992: Net income is $37.9 million on total revenues of $1.04 billion.

1993: Bruce Klatsky, president, is named chief executive officer.

1994: Klatsky adds role of chairman.

1995: Crystal Brands Inc. acquired for $114.7 million. Includes Gant, Izod and Salty Dog brands.■ Net income is $294,000 on total revenues of $1.46 billion.

1999: Gant sold to Pyramid Sportswear AB for $71 million, with PVH retaining a 19 percent minority equity interest in Pyramid.■ Of the business segments, 27 percent of sales is from dress shirts; 27 percent from footwear

and related products, and 46 percent from sales of other apparel goods, primarily branded sportswear.

2000: PVH acquires worldwide rights to Van Heusen and acquires the license to manufacture designer dress shirts under the Kenneth Cole brands.

2003: Calvin Klein acquired for $438 million.■ Net income is $14.7 million on total revenues of $1.58 billion, including $163.9 million in Calvin Klein licensing income.

2004: PVH acquires worldwide rights to Arrow from Cluett American

Group Inc. for $70.5 million.

2005: Mark Weber succeeds Klatsky as chief executive officer.

2006: Emanuel Chirico elevated to ceo after Weber’s departure. ■ Net income is $155.2 million on total revenues of $2.09 billion, which includes $182.3 million in royalty income.

2007: Company acquires Superba Inc. for $113.3 million, plus an earnout.■ The value of $100 invested in PVH stock after

five years is $375.32.

2008: Following the economic meltdown in 2008, the value of $100 invested in PVH stock after five years is now worth $111.68.■ Net income is $91.8 million on total revenues of $2.49 billion, which includes $236.6 million in royalty income.

2010: PVH acquires Tommy Hilfiger for $3 billion.■ Net income is $53.8 million on total revenues of $4.64 billion, which includes $309.6 million in royalty income.

2011: Emanuel Chirico adds the role of chairman.■ Net income is $317.9 million on total revenues of $5.89 billion, with 40 percent attributable to international sales. Royalty income is $356 million.■ Corporate name changes to PVH Corp. from Phillips-Van Heusen Corp.■ The value of $100 invested in PVH stock after five years is $166.19.

PVH: By the NumbersThe corporation has morphed and grown significantly since Allen Sirkin returned in 1985.

by VICKI M. YOUNG

IN THE PAST 27 YEARS, Allen E. Sirkin has seen many changes in the apparel in-dustry and at PVH Corp.

Those changes cover much ground, and not just the four major acquisitions of Izod, Superba, Calvin Klein and Tommy Hilfiger.

Sirkin, who began his second stint at PVH in 1985, was president of The Van Heusen Co. and The Designer Group from 1988 to 1990. He served as chairman of the firm’s apparel group from 1990 until 1995, was named vice chairman of dress shirts in 1995 and president and chief operating of-ficer in February 2006.

Most striking during his tenure has been the changing apparel production landscape. He saw Van Heusen become the top-selling dress shirt brand in U.S. department stores in 1991. Back in 1993, no one customer ac-counted for more than 10 percent of the firm’s sales. Wholesale clients included May Department Stores Co., Federated Department Stores Inc., Dayton Hudson Corp., J.C. Penney Co. Inc., Macy’s Inc., Younkers and Mercantile. With the consoli-dation of department store doors, sales to PVH’s five largest customers in 2008 were

31.7 percent of total revenues. Those ac-counts included Macy’s, J.C. Penney, Kohl’s and Wal-Mart. Macy’s, PVH’s largest custom-er, accounted for 11.5 percent of all sales.

Also in 1993, 35 percent of the wholesale apparel products were manufactured in com-pany facilities in the U.S., Puerto Rico and the Caribbean Basin. Domestic manufactur-ing facilities were in Alabama, Arkansas and Puerto Rico. Other facilities were in Costa Rica, Guatemala and Honduras.

By 1998, domestic manufacturing was primarily isolated to its facility in Alabama, as well as in Costa Rica and Honduras. More than 95 percent of the firm’s offerings were produced by manufac-turers in foreign countries by 2002. By 2011, following the acquisitions of Calvin Klein and Tommy Hilfiger, PVH’s products were manufactured in more than 750 factories across more than 40 countries.

The employee head count has changed, too, given the move to overseas production and restructuring over the years. The firm had a total head count of 13,100 employees in 1993, with 10,200 full-timers and 2,900 part-timers. That total fell to 9,800 by 2000, with 6,200 considered full-time and 3,600 counted as part-time staff.

TIMELINE HIGHLIGHTS

CALVIN KLEINWorldwide retail sales

$2.8 B

$6.7 B

TOMMY HILFIGERWorldwide retail sales

$2.5 B

$4.6 B

2003 2010

2005 2010

CALVIN KLEIN 2010 SALES BY REGION

NORTH AMERICA: 53%EUROPE: 25%ASIA: 17%SOUTH AMERICA: 3%MIDDLE EAST AND AFRICA: 2%

TOMMY HILFIGER 2010 SALES BY REGION

NORTH AMERICA: 36%EUROPE: 44%ASIA: 10%REST OF THE WORLD: 10%

HERITAGE BRANDS (2010 total revenues):DRESS FURNISHINGS: $532.4 million SPORTSWEAR: $568.4 millionRETAIL: $644.8 million

SOURCE: PVH.COM AND SEC FILINGS

Emanuel

Chirico


AMERICAN DREAM

STRIPED SHIRTSIke Behar’s cotton shirt. Ike Behar tie. Sean John’s cotton shirt. Ike Behar tie. Donald J. Trump’s cotton shirt. Hickey Freeman tie.

PHOTOS BY ELI SCHMIDT

The former shirt company has transformed into a fashion empire that showcases the DNA

of American fashion. — ALEX BADIA

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As you button up an incredible career, we celebrate your success and thank you for your partnership.

Congratulations,

Allen.

the man makes the suit.Sometimes,

Men’s Week: IN PERSONWWD THURSDAY, APRIL 19, 2012IP22

WHITE SHIRTSMichael Kors’ cotton shirt. Calvin Klein tie. Van Heusen’s cotton and poly shirt. Valentino tie. John Varvatos cotton shirt. Tommy Hilfiger tie.

PROUDLY CELEBRATINGTHE CAREER & ACHIEVEMENTS OF

ALLEN SIRKIN

A TRUE VISIONARY, LEADER AND PHILANTHROPIST


UNDERWEARMichael Kors’ T-shirt and Tommy Hilfiger’s boxers, both in cotton. Michael Kors’ T-shirt and Izod’s boxers, both in cotton.


IZOD

WE SALUTE OUR DEAR FRIEND

ALLEN SIRKIN

MAY YOU LIVE YOUR RETIREMENT IN

GOOD HEALTH, GREAT COMPANY AND MANY BIRDIES.

PEERLESS CLOTHING

THE ULTIMATE PARTNER AND LEADER.

YOUR HARD WORK AND DEVOTION HAS PROPELLED PVH

DURING THE LAST 30 YEARS TO THE TOP, AND WE HAVE BEEN

BLESSED TO BE ALONG FOR THE RIDE.

THANK YOU FOR YOUR LOYALTY AND SUPPORT.


CALVIN KLEIN

American Greetings Anne Klein Arrow Axist Ben Sherman Billy London Champion Chaps Claiborne Geoffrey Beene Hathaway Ike Behar Jack London Jeff Banks JOE Joseph Abboud John Henry Original Penguin Pacific Trail Perry Ellis Portfolio Pierre Cardin Signature by Levi’s Ted Baker

Columbia Sportswear Countess Mara Denizen from Levi’s Dickies Dockers Diane von Furstenberg Jonathan Adler Jones New York Levi’s Liz Claiborne Marc Ecko Marcs Nautica Nine West Thomas P ink Timber land Tommy Bahama Trafa lgar Trave l Gear Weatherproof Wembley

Allen Sirkin

Randa Accessories: the global leader in lifestyle accessories. Under 75 leading brands and through 18,000 points of sale,

we design, reinvent, manufacture, distribute, and market men’s belts, wallets, neckwear, small leather goods, luggage, back-

packs, business cases, slippers, jewelry, and gifts. Randa — the world’s best, and largest, men’s accessories company.

27 Years of extraordinary partnership.

The best is yet to come.

& PVH for

Would like to thank

www.randa.net


CALVIN KLEIN COLLECTION

OPENING SEPTEMBER 2012


TOMMY HILFIGER

Thank you, Allen, for your great vision and leadership,

your humanity and your dedication to the human spirit.

It is a privilege to help celebrate your remarkable career

in the apparel industry.

Congratulations from all your friends at The Bon-Ton Stores, Inc.

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congratulations


TOMMY HILFIGER

THE NEW YORK GIANTS

THANK

ALLEN SIRKINA TRUE CHAMPIONA GREAT PARTNERALWAYS A “GIANT”

Congratulations on your Hall of Fame career

at PVH

HERE’S TO A CAREERWOVEN WITH SUCCESS.

CONGRATULATIONS TO ALLEN SIRKIN.

THE NATIONAL FOOTBALL LEAGUE

Bruce Klatsky, former chairman and chief executive officer, PVH Corp., and partner, LNK Partners:“Allen started his career at PVH before I did — as a merchant, actually — and left before I joined. I convinced him to come back in 1985, and he was an integral part of the turnaround that helped to stabi-lize our platform and, in turn, enabled us to evolve the company and buy Calvin Klein and subsequently Tommy Hilfiger. I’m so glad we were able to attract him to come back, and so grateful for the role he played in the company’s transforma-tion. Outside of business, he is devoted to his family. I can think of countless times when there was no higher mission than to provide for his wife, Bonnie, and for both his son, David, and his daughter, Ami. Ami has a wonderful orientation toward hu-manity, and David’s the same way beyond the work he does at PVH. All around, a wonderful guy.”

Larry Leeds, chairman, Buckingham Capital Management, and former ceo, Manhattan Industries:“Allen started with Manhattan when he was a young man, and he was just a wonderful young human being then, and as far as I’m concerned, he’s just a wonderful young human being now. He was intelligent and

hard working from day one, and I thought from the minute he came into our company he had the potential to be a great execu-tive, which turned out to be precisely the case. I consider myself a friend and an ad-mirer. I’ve enjoyed watching him become such an important factor in the growth of PVH to become the magnificent company it is today. He really was a vital instrument in the growth and success of PVH. He be-came a pillar of the industry and he and Manny Chirico became just a terrific team over the years — such a dominant factor in the men’s industry. I felt his primary attri-butes were common sense, intelligence and leadership. Our relationship grew over the years into one of great personal friendship and, today, I would add loyalty to that list.”

Lawrence S. Phillips, former chairman, PVH Corp.:“Great potential. Fully realized. Congratulations.”

Michael Balmuth, vice chairman and ceo, Ross Stores Inc.:“Allen is a smart, pragmatic visionary who always makes his presence known. He’s unique in that in every meeting I have ever had with Allen, not only was he fair and straight, but I always learned some-

thing. He always gave me a different way to look at situations and got me to think further out, and he’s always pushed the people who’ve worked with me to think further ahead, to look at things differently than they might. He’s principled and fair, a stand-up guy. For a man who’s as busy and involved in as many different things as he is, with such a demanding position at PVH that takes so much time, he’s found a way to strike the balance that so many of us strive for. Allen is committed to everything he does. A lot of us lose sight of what’s im-portant. He never has.”

Donald J. Trump, chairman and president, The Trump Organization (PVH licensor):“Allen has been a wonderful business part-ner and friend. He supported the Donald J. Trump Signature Collection early on and has continued to do so since the brand’s cre-ation. I’ve enjoyed working with Allen and wish him all the best in his retirement.”

Robert Stock, founder, co-chairman, chief creative officer, Robert Graham Holdings LLC (PVH licensor):“Allen and I worked together at Manhattan Industries for a relatively short time, but he was, even then, a pretty amazing guy, one of the first people I ever worked with who understood merchandising in general

and merchandising a collection in particu-lar, and also had a strong financial orienta-tion. He knew the technology of knits and wovens so well. He is a really honorable, understated sort of guy, a great business-man, very level-headed, principled and easy to work with. We work with his son, David, on Robert Graham neckwear and he’s the same kind of person — a really good guy and a great businessman. Allen’s got a great sense of humor and could joke about his different wardrobes in differ-ent sizes. I wish him and Bonnie the best. I’m sure he’ll have a great life outside the business but will always in his heart be connected to the business.”

Stuart Goldblatt, executive vice president, private brands, Macy’s Merchandising Group, Macy’s Inc.:“I first met Allen when he was the very young ceo of Puritan Sportswear [then a division of Warnaco] in 1981. I worked as an assistant buyer at the Hecht Co. I was always amazed by Allen for many reasons. Here are three that resonate most with me today, and they are the same from my first meeting with Allen in 1981: his willingness to be accessible and act as a strong men-tor and leader, and to possess a progressive business mind with great intellect and wit; his great capacity to balance commerce


Others on AllenHere are comments from some of the many people who worked with Allen Sirkin over the years,

including several to whom he’s reported. — Compiled by ARNOLD J. KARR

Penske Racing and the

Chevrolet Detroit Belle Isle Grand Prix

acknowledge Allen Sirkin for a lifetime

of Vision, Leadership, and Generosity.

We are proud to call him a partner.

and creativity with astounding success; he likes to eat!”

Kenneth Cole, chairman and chief creative officer, Kenneth Cole Productions Inc. (PVH licensor):“Allen has been an innovative and dynam-ic leader in the business for many years. Allen is a great merchant, businessman and most importantly has been a great friend to Kenneth Cole Productions.”

Elie Tahari, chairman and ceo, Elie Tahari Ltd. (PVH licensor):“Allen Sirkin has done so much for PVH and for the larger fashion community in his tenure. Allen has dedicated his career to growing PVH and their company’s global business, and I am grateful to have part-nered with them to expand our Elie Tahari men’s business. I wish Allen much happi-ness in his future endeavors and wherever life takes him.”

Morris Goldfarb, chairman and ceo, G-III Apparel Group Ltd. (Calvin Klein licensee):“Allen’s powerful inspiration has guided many people through dif-ficult times. His devotion to many charities, his many friends and business associates is admirable. He represents great leadership, having the right balance of busi-ness skills and a true sense of fair play. Our industry needs more Allen Sirkins. I wish you greater success in business and on the golf course for this next chapter of your life.

Frank Tworecke, group president, sportswear, Warnaco Group Inc. (Calvin Klein licensee):“I have had the pleasure of work-ing with Allen during his long and successful career. He is not only one of the most knowledgeable men’s merchants but also one of the most forthright. If his career and accomplishments were to be gauged against his business suc-cess, he is at the pinnacle of the profession. However, I believe he should be remembered for his compassion, charitable engage-ment, sage advice and commit-ment to family and friends.

Tom Hutton, president and ceo of Geoffrey Beene LLC (PVH licensee), and ceo, Geoffrey Beene Foundation:“Allen Sirkin is a key reason that Geoffrey Beene has been the num-ber-one-selling designer dress shirt at department stores for ap-proximately the past 15 years. Allen is a visionary at PVH, a stra-tegic thinker, and his operational skills have made the Geoffrey Beene partnership with PVH for the past 30 years an industry success story. Much of the phi-lanthropy of the Geoffrey Beene Foundation and Geoffrey Beene Gives Back philanthropic pro-gram is a result of the success of our dress shirt license with PVH headed by Allen. We wish Allen a long, healthy and enjoyable retire-ment.”

Michael Setola, president and ceo, Tharanco Lifestyles LLC:“A man amongst men, a true gen-tleman and an all-around nice guy. Allen exemplifies the very best of the executives in our industry who have made a difference for their companies and their custom-ers. And in giving of himself for humanitarian initiatives, he has made a difference in the lives of so many in need. I’m proud to call Allen a friend.”

Jimmy Rosenfeld, co-president, Fishman Tobin Apparel Group (PVH licensee):“Allen is a world-class gentleman, and he’s been a father figure and a mentor to us in our 15-year relationship with PVH. He’s always been tough but fair, and he’s always treated us like partners, never with a ‘David vs. Goliath’ attitude. You always have a sense of inclusion with Allen; I’m sure he has 50 best friends and each one feels like he’s the only one. He tends to look at just about everything as a win-win situation, and he’s got an incredibly posi-tive attitude about everything. You learn a lot about a person on the golf course, and with Allen, he could be 10 yards into the trees, in the rough, behind a rock or under a branch, and he walks in with a smile and says, ‘This is just where I want to be.’ If he ever writes a book, it should be called ‘Getting to Yes.’ That’s the attitude he has

about things, and it’s served him and many of us who have known and worked with him very well.”

Roger Penske, owner of Penske Racing team and Penske Corp.:“I have enjoyed getting to know Allen over the last few years, and we truly appreci-ate his support and passion for the Izod IndyCar Series. Allen has been a good friend to Team Penske, and we wish him the best in his retirement. We hope to see him soon out at the racetrack.”

Ira Schwartz, ceo, Free Country Inc. (PVH licensee):“When we were in the final stages of ne-gotiating our license for Izod, I told him we were very supply-side competent and that we could produce the best garments at ‘magical’ price points. He liked that and

it led to a whole discussion about how he appreciated the ‘animated’ seller over the ‘bottled-up’ one. And we got the license. Allen was always a truly decent guy when it came time to negotiate renewals. He al-ways did right by me. Allen is one of the truly good guys, a really important part of what’s made PVH operate as a dynamic and progressive public company.”

David Katz, senior vice president and chief marketing officer, Randa Accessories (PVH licensee):“Allen is a strong leader and a strategic partner. In the new world order where com-panies compete with one another on one front and partner together on others, the key is mutual respect. Allen and PVH have earned the respect of Randa and our indus-try. We wish Allen well, and look forward to new and continued alignments with PVH.”

Men’s Week: IN PERSON IP37WWD THURSDAY, APRIL 19, 2012

Belk is proud to celebrate the career of

Allen SirkinPresident and Chief Operating Officer of PVH

a true visionary who has made tremendous contributions to

the retail and apparel industry


by ROSEMARY FEITELBERG

UNABASHED AS PVH Corp. is about marketing its brands, the conglomerate is considerably more low-key about its philan-thropic efforts.

For the past six years, the company has been quietly sup-porting the Team Izod Youth Leadership Basketball program, which is meant to be a safe house for boys between the ages of 10 and 17. These elite players and potential college scholarship winners receive mentoring, tu-toring and life-skill coaching from an assortment of profes-sionals and former NBA players.

There are currently 70 boys from New York, New Jersey, Connecticut and Pennsylvania par-ticipating. Darryl Dawkins, who is best known for his days with the Philadelphia 76ers and the New Jersey Nets, is involved with the initiative. Even though PVH does not market its involvement, the company’s support is invaluable, according to Eddie Bright, presi-dent and general manager.

“I cannot put into words how

PVH helps. They don’t do this to help themselves. They do it be-cause they see these kids’ poten-tial and want to have a positive effect,” he said. “They do this because they actually care and they recognize the opportunity to make a difference.”

Thirty-five participants have gone onto college since the pro-gram was started. Aside from de-veloping their basketball skills,

the initiative teaches the boys the importance of education, etiquette, social media skills and how to deal with being confronted by authorities, among other things.

“We teach them to tie up their shoes, not to wear a hat indoors, how to shake a person’s hand, how to introduce themselves and other tools for life. We teach them that how you are in school and who you are as a person is more important than how long you play basketball for,” Bright said.

PVH also supports Ronald McDonald House New York, which provides temporary hous-ing for families with children who have been diagnosed with cancer. Families receive emo-tional and physical services, psy-chological care, ministry support, wellness programs, tutors, music, art, transportation, activities for siblings, holiday and birthday parties, among other things.

These services are provided to families for the nominal fee of no more than $35 a night.

PVH’s president Allen Sirkin will help gather friends and newcomers for the group’s

Third Annual Celebrity Golf Tournament, which will be held Aug. 13 at the Ridgewood Country Club in Ridgewood, N.J., the site of the 2010 Barclays Tournament.

Last year, Sirkin and former New York Giants Carl Banks and Karl Nelson; former New York Met Ron Darling; Golden State Warrior David Lee; NFL Hall of Famer Lynn Swann, and former outfielder Kenny Lofton helped raise $400,000 for RMHNY. As a co-chair, Sirkin “by far brings in the most people from the in-dustry,” according to William Sullivan, president and chief ex-ecutive officer of RMHNY. “PVH has been a tremendous support-er of this institution.”

With 84 rooms, the New York City chapter can house 300-plus people at any given time and it has helped 30,000 chil-dren since its inception in 1978. There are more than 200 Ronald McDonald Houses in the U.S. and 100 abroad. “As a cancer sur-vivor himself, Allen has really embraced the charity. He came up here and toured our facility about three years ago and was

very taken by it,” Sullivan said.The East 73rd Street facility is

the largest in the system and indi-viduals and corporations provide the bulk of its funding, Sullivan said. In addition to Sirkin’s sup-port, RMHNY receives some fi-nancial assistance and product for the golf outing from PVH. Also, Tom Murry, head of the company’s Calvin Klein brand, serves on RMHNY’s board.

In the months ahead, RMH plans to expand its reach by of-fering its services in New York City beyond Manhattan. There will be a concerted effort to offer hospital navigation services and music, reading, dance and other programs to more underserved areas, Sullivan said.

PVH’s Softer SideThe corporation quietly supports charities such as

Team Izod and Ronald McDonald House.

PHOT

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Charles Barkley encourages

young basketball players.

Ronald McDonald House supports

kids with cancer.

Congratulations

AllenThank you for all of your

outstanding contributions

to our industry.

We wish you all the best,

Stores, Inc.

To Allen,

Congratulations onThe Many AccomplishmentsOf Your Career

From,Your Friends at Warnaco

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