UPDATE: June 17, 2020: Turns out that leading Hugo Boss is among the "other interests" that lured Daniel Grieder away from the top spot at Tommy Hilfiger and PVH Europe. The German luxury brand on Wednesday said that Grieder will begin a five-year stint as CEO on June 1, 2021. He will take over from Mark Langer, who will leave Sept. 30 this year. From Oct. 1 to May 31, 2021, CFO Yves Müller will serve as spokesperson of Hugo Boss's managing board, according to a company press release.
PVH on Tuesday announced that Daniel Grieder, CEO of Tommy Hilfiger Global and PVH Europe, has left "after 23 years in various management roles within the organization, and will be leaving the company to pursue other interests." Martijn Hagman succeeded him effective Tuesday, according to a company press release.
Hagman was chief operating officer for Tommy Hilfiger Global and PVH Europe, as well as chief financial officer for Tommy Hilfiger Global, with 12 years at the brand. He has overseen operations, finance, digital business transformation, technology, business development and the Tommy Hilfiger global sustainability program, the company said.
The Tommy Hilfiger business grew from $6 billion in 2014 when Grieder took his post, to over $9 billion in retail sales last year, and the company's Calvin Klein European business more than doubled in revenues and earnings, the company also said.
Tommy Hilfiger, along with Calvin Klein, is one of the apparel conglomerate's strongest labels, and maintains some strength despite the challenges presented by the COVID-19 pandemic.
Tommy Hilfiger in particular "continues to resonate with the younger audience," Jane Hali & Associates analysts said in emailed comments last month, noting the brand's focus on sustainable collections including jeans made from recycled fabric and organic cotton. "Globally the brand is known for casual apparel and Tommy Jeans."
PVH was among the first apparel retailers to discuss how to manage inventory as the disease outbreak forced the closure of stores worldwide, including the possibility of packing and holding seasonal styles. More broadly, the assortment at both Tommy Hilfiger and Calvin Klein "lends itself to a seasonless calendar (denim and intimates)," according to Jane Hali, with Tommy Hilfiger recently reducing excess inventory through "see-now-buy-now" collections.
The company has worked with department stores and other retail partners "to push inventory commitments out at least an additional four to five weeks," PVH CEO Emanuel Chirico told analysts in April. Otherwise, the brands are amplifying their online marketing, the only area where it hasn't cut marketing expenses to save money during this time of curtailed revenues, he said. PVH's digital business last year rose about 20% globally and is now 12% of total revenue, compared to 10% in 2018, he also said.
The apparently smooth transition in leadership at the brand promises to reinforce its strength. PVH said Tuesday that Grieder will help transition his responsibilities over the next few months. Both he and Hagman "have worked side by side with the brand's founder and Principal Designer Mr. Tommy Hilfiger for many years," the company said.