PVH Corp. PVH recently launched an integrated e-commerce site for its Heritage Brands, which allows cross-brand shopping. The sites launched include IZOD.com, VanHeusen.com and styleBureau.com, thus permitting customers to shop from the IZOD and Van Heusen brands via these sites in a single shopping platform. This website is built in collaboration with Firstborn, the design company.
The launch of this website is expected to improve customers' shopping experience through the availability of various choices, flexibility and convenience. Notably, StyleBureau e-shop will help customers to buy men's clothing and accessories across the company's IZOD, Van Heusen and EAGLE brands. The e-shop will also cover a wide range of the company's offerings besides shirts and ties under the Calvin Klein and Tommy Hilfiger brands. Additionally, it features a 'tie match' device that will digitally connect the site's more than 200 neckties as well as above 100 dress shirt styles.
We note that PVH Corp.'s Heritage Brands has been witnessing sluggish growth compared with its premium Calvin Klein and Tommy Hilfiger brands. In fact, the company continues to benefit from the Calvin Klein and Tommy Hilfiger brands' solid momentum, particularly in the international regions. These have been significantly contributing to the company's financial performance.
In first-quarter fiscal 2018, revenues at Calvin Klein and Tommy Hilfiger improved 18% and 21% each, whereas Heritage Brands segment's revenues grew 5% year over year. For fiscal 2018, brand-wise, revenues are expected to increase roughly 8% (or 7% on a currency-neutral basis) at Calvin Klein and 7% (or 6% on a currency-neutral basis) at Tommy Hilfiger. However, management anticipates revenues from its Heritage Brands to be flat year over year.
We believe that the launch of this new website for Heritage Brands will surely drive the segment's revenues, while boosting the company's overall profitability. This multi-platform online site is likely to enhance customers' shopping experience and in turn generate higher sales.
A glance at this Zacks Rank #3 (Hold) company's share price shows that it has gained 7.6% year to date. Meanwhile, the industry has rallied 22% in the same period.
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