PVH’s Tommy Hilfiger Embarks Digital Sales to Woo Clients

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In an attempt to enhance the buying and selling experience of its retail partners and internal sales teams, PVH Corp.’s (PVH) renowned Tommy Hilfiger brand announced the launch of a digital sales showroom. Situated at the brand’s international headquarters in Amsterdam, The Netherlands, this innovative showroom endeavors to transform the traditional methods of selling.

The main attraction of this showroom is an interactive touch screen interface, connected to high-definition screens, that brings together the details of assortments, sales mechanisms and brand content. This enables retail customers to digitally view all products of the Tommy Hilfiger sportswear and Hilfiger Denim seasonal collections, and simultaneously place orders, customized as per their needs.

The facility of acquiring a full view of all items on a single screen, along with the option of zooming in and accessing related information about a product by clicking on it, will provide retail clients with a seamless buying experience.

Further, this new concept is in line with Tommy Hilfiger’s sustainability goal as it curtails sample production as well as the adverse ecological effects of shipping. Overall, we believe that this concept merges fashion with convenience as it streamlines operations in a systematic way.

Though Tommy Hilfiger has currently introduced this concept in Amsterdam to its key international clients alone, the brand plans to extend it to global markets going forward.

PVH Corp., a premium specialty apparel retailer, stands to benefit from its diversified brand portfolio that provides it with higher possibilities of generating above-average industry growth compared with its peers and to sustain itself in the current challenging environment.

Some of the popular brands in its kitty are Van Heusen, Calvin Klein, Tommy Hilfiger, IZOD, ARROW, Warner’s and Olga. Other licensed brands include, Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, DKNY, Ike Behar and John Varvatos.

The company’s approach to brand management allows each of its brands to develop further through rigorous marketing strategies, financial control and operating leverage. Based on the strength of many of its brands and opportunities with regard to distribution, we believe that the company is poised for long-term growth.

However, this Zacks Rank #4 (Sell) company came up with a cautious forecast for 2014 due to expectations of negative currency translation effects going forward. Following the third-quarter 2014 results, the company lowered its 2014 adjusted earnings per share guidance to the range of $7.25–$7.30 from $7.30–$7.40 projected earlier.

Better-ranked stocks in the textile-apparel industry include Columbia Sportswear Co. (COLM), G-III Apparel Group, Ltd. (GIII), each with a Zacks Rank #1 (Strong Buy) and Lululemon Athletica Inc. (LULU), with a Zacks Rank #2 (Buy).

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