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PVH has the buttoned-up look covered. A top global apparel player, it is the world's largest dress shirt and neckwear company. PVH owns and globally michael kors canada markets lifestyle brands Calvin Klein and Tommy Hilfiger. Clothing, accessories, and footwear for men, women, and children are among its wares. PVH also owns Heritage Brands, which include Van Heusen, IZOD, ARROW, and Bass. Private-label and licensed brands, such as DKNY, Kenneth Cole New York, and MICHAEL Michael Kors, round out its portfolio. The company also markets its own private-label dress shirts and those of a few outside brands. In 1881 Moses Phillips, a Polish-born pushcart peddler, began selling flannel shirts sewn by his wife, Ida, to coal miners in Pottsville, Pennsylvania. His business grew, and by 1887 it was known as M. Phillips Son. Twenty years later Phillips merged his business with D. and was renamed Phillips-Jones Corp. in 1919. The following year the company revolutionized its industry by turning out the first collar-attached dress shirt. Phillips-Jones also began manufacturing men's underwear. With Moses Phillips's son Isaac as company president during this time, Phillips-Jones marketed its garments to retailers, including the Chain Shirt Shops, in which it held an interest. The company's main plants at this time were in New York City, and Albany, New York, as well as in five Pennsylvania municipalities, including Pottsville, which would by the 1940s become its main facility. Profits, on $11.1 million of sales in 1922, reached $1.4 million--a peak not surpassed until 1947. Phillips-Jones lost money in this year, as well as in the next two years, and discontinued paying dividends, a practice not resumed until 1947. He revamped the styling of shirts to improve their quality and durability, expanded the company's research and development facilities, and halved its 2,000 retail accounts to a profitable 1,000 while increasing the advertising budget from less than $10,000 a year. Sales and profits increased rapidly after World War II. Phillips-Jones was operating 12 plants in 1954 and serving some 6,000 department stores and haberdashers. The company also reentered the retail business by purchasing Kennedy's, Inc., a chain of 15 New England menswear stores, in 1958. The company introduced Lady Van Heusen shirts and blouses in 1962, when shirts accounted for 80 percent of its sales (excluding Kennedy's). It was offering liberal credit to these customers and also assisting them with advice on fixturing, stock, promotion, display, and turnover. The company was spending more than $2.5 million a year on advertising. About two-thirds of all men's dress shirts were wash-and-wear by 1965, when PVH introduced its Vanopress permanent-press model, available in Dacron and cotton and offered for the company's sports shirts and pajamas as well. Kennedy's was selling women's and children's wear as well as men's clothing and furnishings. The company now had 16 plants, situated in Arkansas and Puerto Rico as well as in Alabama and Pennsylvania. PVH's acquisition program continued. In 1966, for example, it entered the tailored-clothing field by purchasing Joseph Feiss Co. of Cleveland, and then outerwear with the purchase of Wind Breaker Inc. of Danville, Illinois. The company also established a men's toiletries division in 1965. Sales took a big leap in 1966, to $143.3 million, and the firm's net income reached $4.3 million, more than triple the level in the late 1950s. Its retail division grew to 69 stores later in the year with the addition of four chains, including 12-store Redwood Ross, which was part of the acquisition of Kalamazoo Pants Co., a manufacturer of slacks for teenagers. That year the men's and boys' furnishings and outerwear division accounted for 41 percent of sales, the michael kors purses outlet men's tailored-clothing division for 26 percent, and the retail division for 33 percent. With the purchase of Harris Frank's 32 West Coast stores in 1971 from Botany Industries, the number of retail stores reached 109, accounting for 41 percent of the company's revenues. During this period the Van Heusen division began to lose sales to retailers' own private-label shirt offerings. The company responded by initiating its own private-label operations, closing its Pennsylvania factories, and relocating in cheaper-labor venues in the South and the Caribbean. PVH liquidated the unprofitable Wind Breaker division, with its four manufacturing plants, in 1977, and the 21-store Redwood Ross retail chain was sold in 1979 to its former owner. Van Heusen introduced a Halston collection in 1981. The parent company's chain of factory outlet stores, first introduced in 1976, reached 36 in 1984, while its retail division fell to 53 stores in 1984 with the sale of eight Rices Nachmans units to Hess's Department Stores. PVH's president later told a Fortune reporter, "A couple of arrogant Texans came in here and said they were going to take over and run this company. They didn't know their ass from their elbow about running this or any other corporation." Armed with $73 million from Prudential Insurance Co. of America for convertible preferred stock and $210 million in bank loans to finance a $146 million stock buyback (at $28 a share) and the purchase of a footwear company, PVH also borrowed $77 million from Prudential by issuing high-yield notes. Bass Co., which PVH purchased in 1987 from Chesebrough-Pond's Inc. for $79 million, in spite of its loss of $47 million the previous year. Phillips offered his top 11 officers a $1 million bonus each if PVH's earnings per share rose at a compound annual rate of 35 percent during the four fiscal years ending in January 1992. Accordingly, at the end of 1989 the parent company purchased Windsor Shirt Co., a 39-store men's-furnishings group. By the fall of 1991 the company was fielding more than 600 tastefully designed stores in the outlet malls rapidly being erected around the country, under the names of Van Heusen, Bass, Cape Isle Knitters (sweaters), Geoffrey Beene (designer's shirts), and Windsor Shirts (private-label men's furnishings). to become the nation's largest shirt manufacturer, having gained market share with stylish features such as spread collars, bright stripes, chambrays, and denims. One division was selling the Van Heusen brand for about $25, another was making private-label shirts for retailers like Bloomingdale's and Lands' End, and the cheap michael kors bags third was selling Geoffrey Beene designer-label shirts for about $32. Also available were the Hennessy, Cezani, and Etienne Aigner labels, at prices up to $45. One key to sales success was PVH's heavy advertising in women's magazines, as studies indicated that women were purchasing at least 60 percent of all men's shirts. PVH announced in 1992 that Van Heusen had become the top-selling shirt brand in the United States, having grown 20 percent in the previous year. In 1994 Van Heusen introduced a line of wrinkle-free shirts, which it publicized as "The shirt that irons itself."By mid-1993 PVH's outlet stores, which reached a peak of about 1,000, were accounting for half the company's revenues michael kors factory outlet and even more of its earnings, according to analysts. At the same time, since the company could ill-afford to alienate the department stores it was also supplying, it situated the outlet stores in such locations as vacation resorts and small towns lacking department stores. Klatsky, the company's president since 1987, was appointed company chairperson, the first chief executive not a member of the founder's family. Lawrence Phillips, who yielded the chairman's post to Klatsky in 1994 and sold the family's remaining 11 percent stake in the company in 1995, had, in 1972, given his employees the power, based on pension fund shares, to scrutinize and vote on decisions about the stock PVH held in other corporations. Klatsky, likewise, had a reputation as a champion of human rights for overseas workers and served on a White House committee to eliminate sweatshops. Consequently PVH was more than a little embarrassed by allegations in 1992 that the company had made a concerted effort to block the unionization of its workers in Guatemala. shirt factories in 1995 and, on revenues of $1.46 billion, reported annual net income of only $294,000 after taking a charge of $17.3 million for closing the plants. In fiscal 1996 PVH earned $18.5 million on net sales of $1.36 billion. By the fall of 1997 about 75 percent of PVH's products were being made in less-expensive overseas factories. Footwear sales had declined following an attempt to raise Bass's moderately priced shoes to a higher price bracket. In the United States, Van Heusen was the best-selling men's dress shirt brand and Geoffrey Beene the best-selling men's designer dress shirt brand. Sales of other apparel, primarily branded sportswear, accounted for about 44 percent of company sales. Van Heusen was the best-selling woven sport shirt brand in the United States. Izod products included the best-selling men's sweater brand, michael kors purses the top-ranked golf apparel brand in pro shops and resorts, and one of the best-selling basic knit shirts. Gant represented the largest collection brand in several European countries. Footwear and related products accounted for about 33 percent of PVH's sales. About 80 percent of its footwear was also being manufactured independently, chiefly in Brazil and the Far East. Most of PVH's products were being wholesaled to major department stores and men's specialty stores nationwide, but the Gant brand was available in some 35 countries. The more than 50 Gant stores (all but one, ironically, on foreign soil) included a flagship unit that opened on Fifth Avenue in New York City in 1997. These stores were being run by Pyramid Sportswear, in which PVH held a quarter-interest. Gant planned to open an additional 10 stores in the United States by the year 2000. B1-B2.------, "Phillips-Van Heusen Has Plans to Close Outlet Stores, Stop Making Sweaters," Wall Street Journal, August 1, 1997, p. 3, p. 60, 62."P-VH Stacks Deck Against Rosewood," Daily News Record, July 31, 1987, pp. 27, 29."Stylish Gains Seem Set for Phillips-Van Heusen," Barron's, April 12, 1965, p. 25.

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