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Tommy Hilfiger Capstone Project for Seminar in FM
1. T O M M Y H I L F I G E R
Capstone Project
Sophia O’Kane
2. TABLE OF CONTENTS
1: Title
2: Table of Contents
3: Executive Summary
4: Statement of Problem
5: Competitive Analysis
6: Target Customer
7: Trend Analysis and Line Direction
8: Fabric Story
9-10: Styles and Assortment
11: Costing
12: Initial Launch Plan
13-14: Product Allocation Strategy
15: Six Month Sales Plan
16: Plans to Scale
3. STATEMENT OF PROBLEM
One area Tommy Hilfiger could improve in is incorporating more sustainability in their product lines. Sustainability is a core
value of PVH Corp., however Tommy Hilfiger still has a lot of space to improve. The brand has launched sustainable product
lines, such as its “Denim Progressed” line which featured “100 percent certified recycled denim” to incorporate more
sustainable materials (Velasquez, 2022). However, according to the Fashion Revolution, Tommy Hilfiger scored 50% overall in
the Fashion Transparency Index for 2023, and they had one of the highest decreases in percentage of points since 2022 by 7%
(Fashion Revolution, 2023). Tommy Hilfiger needs to continue to adapt to the changing market, and this includes appealing to
a changing demographic. Currently, Tommy Hilfiger targets the “25-45 year old consumer” (Solari, 2015). As Gen Z ages and
gains more buying power in the market, brands will need to match their needs. Since Gen Z “will be the ones who will feel
and see the long-term effects of climate changes” they want to shop from brands who “genuinely care about it, too (How
Brands Can Help the Environment, According to Gen Z & Millennials, 2022). By incorporating sustainable materials and
designs into their product line, Tommy Hilfiger will make progress in their sustainability goals and connect to the younger
generation of consumers.
4. Ralph Lauren is a brand that offers similar styles to Tommy Hilfiger
and can be described as a brand which reflects “a distinctive
American perspective” (Ralph Lauren, n.d.).
Ralph Lauren’s strategic pillars are “create with intent, protect the
environment, and champion better lives” (Ralph Lauren Corporation,
2023).
Ralph Lauren introduced the “Cradle to Cradle Certified Gold Luxury
Cashmere” (Ralph Lauren Corporation, 2023).
The POLO MIRUM sneaker and crossbody pouch feature “Natural
Fiber Welding’s MIRUM components that are 100% plastic-free and
made from plants and minerals” Ralph Lauren Corporation, 2023).
R A L P H L A U R E N
COMPETITIVE ANALYSIS
L E V I S T R A U S S & C O
The Levi’s brand was originally started by the invention of a garment
made for the American worker, and it is now a global leader in jeans
(Levi’s, n.d.). The brand shares similarities to Tommy Hilfiger in that they
both have American roots that inspire their design.
Levi’s WellThread Transitional Cotton program commits the brand to
purchasing transitional cotton crop from farmers “as they transition
their fields to a production system that sustains the health of soils,
ecosystems, and local communities.” (Velasquez, 2023)
Levis Spring/Summer 2023 collection has the addition of plant-based
lack dye (Velasquez, 2023).
5. A recent college graduate, and she is 23 years old.
Has recently moved to Chicago, Illinois; the 2nd ranked city that receives the most
job applications post-grad in the US (Where are College Students Going After They
Graduate?, n.d.). Emily lives in Logan Square, which is one of the best neighborhoods
for “students, as well as career-climbers” (8 Best Neighborhoods in Chicago for
Young Professionals, 2022).
Emily makes $55,000 per year as a graphic designer; the average salary for this
career in Chicago (Graphic Designer Salary in Chicago, IL, n.d.).
Emily is outgoing, enjoys an active lifestyle, and experiencing new things (Darbinyan,
2020).
Emily shops at the Tommy Hilfiger located in the Fashion Outlets of Chicago.
She visits every 1-2 months; spendS anywhere from $50 to $300 in a single shopping
trip, since the average retail price for Tommy Hilfiger is $120 (Solari, 2015).
gets most of her fashion information from social media. She loves to follow fashion
trends and stay up to date by scrolling through TikTok, Pinterest, and Instagram
E M I L Y
TARGET CUSTOMER
6. TREND ANALYSIS AND LINE DIRECTION
STRIPE 1 STRIPE 2
BANDANA 1 BANDANA 2
While sticking to its classic, American style, Tommy Hilfiger will also incorporate trends
that appeal to Gen Z into its marketing mix for the Spring/Summer 2024 season.
Tommy Hilfiger will base this collection on the “New Americana” theme (New
Americicana: Design Movements, 2022). This theme celebrates “the concept of ‘true
American style’ in all of its grittiness, contradictions, and bad taste” (New Americicana:
Design Movements, 2022).
The color palette for this collection would include Tommy Hilfiger’s classic colors of red,
navy, and white, with the addition of yellow and brown for the True Americana theme.
(New Americicana: Design Movements, 2022).
MARGARINE YELLOW CLASSIC NAVY TOMMY RED BRIGHT WHITE AMERICANA BLUE
13-0756 TCX 17-4139 TCX
11-0601 TCX
2768 C 186 C
7. Swatch Fabric Name Fiber Content Suitability Special Care Vendor Wholesale Price
Eco-Friendly
Denim
94% Cotton, 6%
Recycled Cotton
Bottom
weight, jackets
Iron, do not
bleach
https://www.moodfabrics.com/
classic-indigo-eco-friendly-
cotton-selvage-denim-433062
$8.99
Shirting
100% Recycled
Cotton
Tops
Dry clean only,
iron
https://suvetah.com/en-
us/products/recycled-cotton
$1.44
Jersey
100%
RecycledPolyester
Tops,bottoms,
skirts, dresses
Wash in cold
water
https://www.manifutura.com/pr
oducts/100-recycled-pes-single-
jersey-white-2sp239
$1.72
Pinwale
Corduroy
100% Cotton
Jackets,
bottoms
Wash in cold
water, tumble
dry low
https://www.joann.com/fabric-
merchants-tan-pinwale-
corduroy-
fabric/19723568.html
$9.99
Bubble Gauze 100 % Cotton Tops, Dresses Hang dry
https://www.joann.com/bubble-
gauze/18510875.html
$7.50
FABRIC STORY
8. STYLES AND ASSORTMENT
This collection will add a trendy element to Tommy Hilfiger’s assortment. This collection takes classic silhouettes and gives them a
modern twist to add a fresh look.
The collection is centered around the theme, “New Americana” so current Tommy Hilfiger customers will still enjoy the American
style the brand is known for.
By adding trendy elements in the clothing, Tommy Hilfiger will be able to reach a younger audience.
By utilizing natural and recycled fibers in the fabrics, Tommy Hilfiger will not only improve their environmental impact, but they will
also have another selling point to its new customer target of Gen Z
9. Style
Number:12403
Description:
Gathered Side T-
Shirt
Retail Price:
($49.50)
Sizes:
XXS-XXL
Colors:
Classic Navy, Margarine Yellow, Stripe
Colorway 1, Stripe Colorway 2
Fabric Name:
Jersey
100% Recycled Polyester
Description:
Boxy t-shirt with pull gather on one side seam
Trims, Special treatments, etc.:
Ribbing for neckline
The five items that make up the core
of this collection are elevated basics.
They have classic silhouettes that can
easily be paired to make multiple
outfits, lasting a long time as part of a
capsule wardrobe, while still giving off
a fresh look.
The five items utilize all the colors and
prints, so they can be mixed and
matched. They also serve as the
anchor of the collection in rooting the
assortment in the classic, Tommy
Hilfiger style.
K E Y I T E M S
10. Style Number:
22401
Description:
Denim Maxi
Skirt
Retail Price:
($129.00)
Sizes:
00-18
Colors:
Classic Navy, Americana Blue
Fabric Name:
Eco-Friendly Denim
94% Cotton 6% Recycled Cotton
Description:
Mid-waist maxi denim skirt with front slit
Trims, Special treatments, etc.:
Jean Button 17mm, rivets 8mm
Style Number:
22402
Description:
Denim Cargo
Pants
Retail Price:
($139.00)
Sizes:
24-38
Colors:
Classic Navy, Americana Blue
Fabric Name:
Eco-Friendly Denim
94% Cotton 6% Recycled Cotton
Description:
High-waisted cargo style jeans with gathers at ankles
Trims, Special treatments, etc.:Jean Button 17mm,
magnetic buttons for pockets
11. Style Number:
32401
Description:
Handkerchief
Hem Shirt Dress
Retail Price:
($149.00)
Sizes:
00-18
Colors:
Tommy Red, Bandana Colorway 1,
Bandana Colorway 2
Fabric Name:
Shirting
100% Cotton
Description:
Asymmetrical hem dress with diagonal front placket and
short sleeves
Trims, Special treatments, etc.:
Flat Buttons ½ in
Style Number:
42401
Description:
Denim Jacket
Retail Price:
($134.00)
Sizes:
XXS-XXL
Colors:
Classic Navy, Americana Blue,
Tommy Red
Fabric Name:
Eco-Friendly Denim
94% Cotton 6% Recycled Cotton
Description:
Oversized denim jacket with puff sleeves
Trims, Special treatments, etc.:
Jean Buttons 17mm, rivets 8mm
13. This collection will be launched in Spring 2024 in 25 stores, which is about 17% of the
stores in the US, and online.
This collection will coexist with classic Tommy Hilfiger styles so that customers can
pair their favorite items with these new pieces.
Online, the collection will be featured on the Tommy Hilfiger homepage to promote it.
In store, the collection will be placed toward the front of the store.
To promote the collection, emails will be sent to subscribers to let them know about
the new collection and educate them on the sustainable aspects behind it.
The collection will also be promoted on Tommy Hilfiger’s social media accounts, with
the main app being TikTok. This will allow the brand to target Gen Z, which is the main
targeted customer for this new collection.
For online purchases, orders that include an item from this new collection will be
shipped in recyclable mailer to promote the sustainable materials used in the collection.
INITIAL LAUNCH PLAN
14. Class # Class
Percentage
of Budget
Allocated
1 Tops 40%
2 Bottoms 30%
3 Dress 15%
4 Jacket 15%
100%
PRODUCT ALLOCATION STATEGY
The collection will be launched in 25 stores all at
once, and online at the same time. Launching in
stores allows the customers the ability to see, feel,
and try on the clothing. Launching online will allow
Tommy Hilfiger to reach more of its new targeted
audience, Gen Z.
The collection will be made up of 40% tops, 30%
bottoms, 15% dresses, and 15% jackets.
The color distribution will be made up of 20%
Classic Navy, 15% Tommy Red, 15% Bright White,
10% Americana Blue, 10% Stripe 1, 10% Stripe 2,
8% Bandana 1, and 7% Bandana 2.
15. Class Style # Description
Total
Units
Unit Cost Unit Retail
Total
Cost
Total
Retail
Total Retail
per Class
1 12401
Corduroy One
Shoulder Tank Top
60 $14.99 $69.50 $892.54 $4,139.59
1 12402
Versatile Cropped Tank
Top
60 $1.72 $44.50 $103.93 $2,688.91
1 12403 Gathered Side T-Shirt 60 $3.10 $49.50 $186.69 $2,984.80
1 12404
Asymmetrical Button
Up Shirt
60 $20.25 $89.50 $1,216.84 $5,378.14 $15,191.45
2 22401 Denim Maxi Skirt 56 $22.48 $129.00 $1,262.11 $7,244.12
2 22402 Denim Cargo Pants 56 $24.27 $139.00 $1,358.80 $7,781.22
2 22403 Box Pleat Shorts 56 $16.98 $74.50 $955.36 $4,190.92 $19,216.27
3 32401
Handkerchief Hem
Shirt Dress
90 $5.76 $149.00 $520.55 $13,465.73 $13,465.73
4 42401 Denim Jacket 89 $22.48 $134.00 $1,995.33 $11,896.52 $11,896.52
Totals 587 $8,492.15 $59,769.97
Size Percentage
XXS 5%
XS 10%
S 20%
M 25%
L 25%
XL 10%
XXL 5%
Size Percentage
24 5%
26 10%
28 10%
30 20%
32 20%
34 20%
36 10%
38 5%
Size Percentage
00 3%
0 5%
2 5%
4 7%
6 10%
8 15%
10 15%
12 15%
14 13%
16 7%
18 5%
16. SIX MONTH SALES PLAN
The Retail Planned Purchases amount for the month of May is $61,250. This will be used to
create a budget for buying the assortment for one store.
The planned sales are expected to be $175,000 for the Spring/Summer 2024 season.
The months with the highest sales are expected to be May and June due to the transition
of spring to summer.
June and July will have the highest markdowns due to semi-annual clear-out sales as the
brand prepares to take in new inventory for the fall season.
July’s EOM is $50,000, which is the second lowest amount. This can be attributed to both
the markdowns occuring at the end of the season and expected increased shopping during
the summer months.
17. February March April May June July TOTAL
PLANNED SALES $
Last Year % 17% 17% 15% 18% 25% 8% 100%
LY $$
Plan $29,750 $29,750 $26,250 $31,500 $43,750 $14,000 $175,000
Percent of Increase
Revised
Actual
RETAIL STOCK Last Year
(BOM) $ Plan $92,225 $74,375 $60,375 $63,000 $87,500 $49,000 $426,475
Percent of Increase
Revised
Actual
MARKDOWNS $ Last Year
Plan (dollar) $3,938 $3,938 $3,938 $3,938 $5,250 $5,250 $26,250
Plan (%) 15% 15% 15% 15% 20% 20% 100%
Percent of Increase
Revised
Actual
RETAIL Last Year
PURCHASES $ Plan $15,838 $19,688 $32,813 $59,938 $10,500 $20,250 $159,025
Percent of Increase
Revised
Actual
PLANNED
PURCHASES AT
COST $
Last Year
Plan $6,335 $7,875 $13,125 $23,975 $4,200 $8,100 $63,610
Initial Markup 60% 60% 60% 60% 60% 60% 60%
Revised
Actual
ENDING STOCK Last Year
(EOM) Plan $74,375 $60,375 $63,000 $87,500 $49,000 $50,000
Percent Increase
Revised
Actual
Stock-Sales Ratio 3.1 2.5 2.3 2.0 2.0 3.5 2.4
18. PLANS TO SCALE
If the sales plan of $175,000 is met, then the collection
can be defined as a success. If this collection is
successful, it could be expanded to more stores, starting
with another 25 stores, so that it is offered in 50 stores
total to see how it performs in a wider range of
geographic locations.
This collection could open doors for a permanent line
that focuses on incorportating sustainable materials such
as natural and recycled fibers. If this collection performs
well, then it will be indicative that the consumers are
wanting sustainable options like this collection.
19. REFERENCES
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Bloomberg. (2023, September 8). US retail workers are fed up and quitting at record rates. The Business of Fashion. https://www.businessoffashion.com/articles/retail/us-retail-workers-are-fed-up-and-quitting-at-record-rates/
Claudio, A. (2023, March 28). Tommy Hilfiger and Aries drop streetwear and remade designs. Sourcing Journal. https://sourcingjournal-com.proxy.library.kent.edu/denim/denim-brands/tommy-hilfiger-aries-remade-streetwear-modern-prep-pvh-glorilla-novelist-5eb-426015/
Editorial Team. (2023, August 23). PVH Corp. Unveils innovative financing initiative to empower High-ESG score suppliers. CommonShare News. https://news.commonshare.com/blog/pvh-corp-unveils-innovative-financing-initiative-to-empower-high-esg-score-suppliers
Friedman, A. (2018, June 26). PVH Corp. Takes action to accelerate apparel sector circularity. Sourcing Journal. https://sourcingjournal.com/sustainability/sustainability-news/pvh-circularity-apparel-109925/
Goldberg, J. (2020, March 29). The impact of Covid-19 on U.S. brands and retailers. Forbes. https://www.forbes.com/sites/jasongoldberg/2020/03/29/the-impact-of-covid-19-on-us-brands-and-retailers/?sh=351638cf1452
Gura, D. (2023, August 26). How high tensions between China and the U.S. are impacting American companies. NPR. https://www.npr.org/2023/08/26/1195711197/china-us-trade-tensions-commerce-secretary-gina-raimondo
(n.d.). Levi's. https://www.levi.com/US/en_US/
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Lockwood, L. (2018, October 17). Tommy Hilfiger launches 'Independence' campaign. Women's Wear Daily. https://wwd-com.proxy.library.kent.edu/business-news/media/tommy-hilfiger-launches-independence-campaign-1202886099/
Nishimura, K. (2023, September 14). The north face Reimagines classic styles in denim with help from Gore-Tex. Sourcing Journal. https://sourcingjournal.com/denim/denim-brands/the-north-face-denim-gore-tex-streetwear-nuptse-jacket-gorpcore-454552/
Number of Tommy Hilfiger locations in the USA in 2023. (2023, July 27). ScrapeHero. https://www.scrapehero.com/location-reports/Tommy%20Hilfiger-USA/
PVH Corp. (2019). “PVH Corp. Form 10-K for the year ended February 3, 2019.”
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PVH Corp. (2021). “PVH Corp. Form 10-K for the year ended January 31, 2021.”
https://pvh.gcs-web.com/static-files/88dffa93-8de4-4346-94ae-1f13eec665cd
PVH Corp. (2022). “PVH Corp. Form 10-K for the year ended January 30, 2022.”
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https://pvh.gcs-web.com/static-files/b269af9c-f3a3-4bc4-9d89-1ca926029d21
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(2023, August 28). PVH. Add a little bit of body text
(n.d.). Ralph Lauren. https://www.ralphlauren.com/
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value/#:~:text=The%20size%20of%20the%20global,trillion%20U.S.%20dollars%20by%202030
Tommy Hilfiger. (n.d.). The Business of Fashion. https://www.businessoffashion.com/organisations/tommy-hilfiger-corp
(n.d.). Tommy Hilfiger. https://usa.tommy.com/en
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Darbinyan, M. (2023, March 30). Target market of Calvin Klein and Tommy Hilfiger. The Social
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Draffan, S. (2022, December 12). Key items fashion: Women's denim S/S 24.
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New Americana: Design movements. (2022, December). Doneger
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Salfino, C. (2022, April 14). Guess which generation wants sustainable clothes the
most? Sourcing Journal. https://sourcingjournal.com/topics/lifestyle-monitor/sustainable-clothes-gen-z-millennials-first-insight-natural-fibers-cfda-339432/
Solari, S. (2015, February 4). Tommy Hilfiger—the proven lifestyle brand. Yahoo
Finance. https://finance.yahoo.com/news/tommy-hilfiger-proven-lifestyle-brand-150548738.html
Velasquez, A. (2022, June 14). Tommy Hilfiger expands circular denim collection. Sourcing
Journal. https://sourcingjournal-com.proxy.library.kent.edu/denim/denim-brands/tommy-hilfiger-jeans-recycled-circular-denim-progressed-hemp-346642/
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Christel, D. A., & Dunn, S. C. (2016). Average American women’s clothing size: Comparing national health and nutritional
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Watson, K. (2021, December 22). Most common shirt sizes. Good Ink. https://goodink.com/blog/choosing-the-right-t-
shirt-size-breakdown/
21. IMAGE REFERENCES
Slide 1
https://usa.tommy.com/en/tommy-curve-clothing-guide.html
Slide 4
Ralph Lauren
https://c2ccertified.org/articles/timeless-fashion-responsibly-made-ralph-laurens-iconic-sweater-now-c2c-certified
Levis
https://www.levi.com/US/en_US/blog/article/levis-wellthread
Slide 5
Target Customer
https://i.pinimg.com/564x/a4/ee/6b/a4ee6b1722e5437b4ce6c3305e05b3a8.jpg
Slide 6
Stripe
www.wgsn.com/content/image_viewer/#/image.31149589
Bandana
www.wgsn.com/content/image_viewer/#/image.23361787
Slide 7
Eco-Friendly Denim
https://www.moodfabrics.com/classic-indigo-eco-friendly-cotton-selvage-denim-433062
Shirting
https://suvetah.com/en-us/products/recycled-cotton
Jersey
https://www.manifutura.com/products/100-recycled-pes-single-jersey-white-2sp239
Pinwale Corduroy
https://www.joann.com/fabric-merchants-tan-pinwale-corduroy-fabric/19723568.html
Bubble Gauze
https://www.joann.com/bubble-gauze/18510875.html
Slide 8
Corduroy One Shoulder Tank Top
www.wgsn.com/content/image_viewer/#/image.36400387
Versatile Cropped Tank Top
www.wgsn.com/content/image_viewer/#/image.37395079
Gathered Side T-Shirt
www.wgsn.com/content/image_viewer/#/image.32579851
Asymmetrical Button Up Shirt
www.wgsn.com/content/image_viewer/#/image.32315686
Denim Maxi Skirt
www.wgsn.com/content/image_viewer/#/image.34997171
Denim Cargo Pants
www.wgsn.com/content/image_viewer/#/image.37178358
Box Pleat Shorst
www.wgsn.com/content/image_viewer/#/image.31667626
Hankerchief Hem Shirt Dress
www.wgsn.com/content/image_viewer/#/image.37157038
Denim Jacket
www.wgsn.com/content/image_viewer/#/image.37651839
Slide 13
Mailer
https://noissue.co/marketplace/recycled-padded-mailer/
Social Media Icon - Canva graphic
Slide 14
Pie Chart - Original Work
Slide 18
Tommy Hilfiger Ad
https://sidewalkhustle.com/tommy-hilfiger-springsummer-2013-campaign/