Good morning. I'm Mark Fisher, General Counsel and Secretary of PVH Corp. As you take your seats, I will entertain you with an exhilarating recitation of our Safe Harbor statement. The presentations to be made during this meeting include market and industry data from research, surveys, studies and publications issued by third parties and information from customers. While we believe the information is reliable, we have not verified it and do not represent its accuracy.
The presentations also contain forward looking statements that reflect our view as of June 4, 2014, of future events and performance. These statements are subject to risks and uncertainties, including those identified in our SEC filings. As such, our future results could differ materially from previous results or current expectations. These risks include our right to change our strategies, objectives and intentions, our need to use significant cash flow to service our debt obligations, our businesses' vulnerability to weather, economic conditions, fuel prices, fashion trends, loss of retail accounts, epidemics, war, terrorism, scarcity of raw materials and other factors, our reliance on the sales of our business partners and our exposure to the behavior of our associates, business partners and the celebrities and designers whose names we own and license. We do not undertake any obligation to update publicly any forward looking statement, including estimates regarding revenue and earnings.
The presentations also include non GAAP financial measures as defined by the SEC. Reconciliations of these measures are included in our current reports on Form 8 ks identified in the press release announcing this meeting. The 8ks are available on pvh.com and the SEC's website. And now I'd like to introduce Manny Chirico, Chairman and CEO of PVH.
Good morning and welcome everyone. I would like to officially call the 2014 meeting of stockholders of the PVH Corporation to order. As a first matter, I'd like to introduce the directors and nominees for director who are present. If I call your names, would you please stand? Mary Baglevo, Brent Kalanikos, Juan Figueroa, Joe Fuller, Bruce Magan, Jim Marino, Henry Nacella, Rita Rodriguez, Ed Rosenfeld and Craig Rydon.
All of these individuals along with myself and Fred Gowring, Chief Executive Officer of Tommy Hilfiger Group, who is attending the Tommy Hilfiger Spring 2015 line opening in Amsterdam are nominees for Director. I'd also like to inform everyone that representatives from Ernst and Young are here. Mike Petrain and Becky Burke of Ernst and Young are outside auditors are here and available to respond to questions. Moving to the business of the meeting, the secretary has informed me that we have an affidavit certifying the mailing of the notice of the annual meeting, the proxy statement, the form of the proxy and the annual report. It will be annexed to the minutes of this meeting.
We have appointed as inspectors of election Becky Paulson of Wells Fargo Share Owner Services, our transfer agent for this meeting. An oath of inspector has been filed and will be annexed to the minutes of this meeting. Any stockholder who has not executed a proxy or wishes to change his proxy may vote share and or vote shares in person may do so by requesting a registration form and a ballot. If there's anyone who needs it, please raise your hand. The Inspector of Election, the number of outstanding shares of our common stock eligible to vote as of April 22, 2014 was 82,000,000 274,987,000 shares.
The Inspector of Election has advised me that we have over 50% of the eligible votes represented at the meeting and therefore we have a quorum. In fact, we have approximately 71,100,000 votes or 90% of the eligible votes represented at this meeting. I'd like to now introduce the matters which there are 3 of that will be voted upon at the meeting. After the introduction of each matter, you will be given the opportunity to comment or ask questions on just that specific proposal. Please hold all other questions until the question and answer period, which will be later in the meeting.
The first matter, the meeting is now open to consider the election of 12 directors for the coming year. May I please have the proposal?
I move that the stockholders of PVH Corp. Electives Directors, Mary Baglivo, Brent Kaliknikos, Emmanuel Chirico, Juan Figueredo, Joseph B. Fuller, Fred Gearing, Bruce Magan, V. James Marino, Henry Nacella, Rita M. Rodriguez, Edward R.
Rosenfeld and Craig Rydon to serve for a term of 1 year expiring at the annual meeting of stockholders in 2015 as set forth in the proxy statement for this meeting.
Are there any comments or questions from our shareholders? Does any of our shareholders need to change their vote or need a ballot? If there are no further questions on that matter, I will close that matter at this time. The second matter is to be voted on is the ratification of the appointment of our auditors. The meeting is now open to consider
stockholders of PVH Corp. Ratify the appointment of Ernst and Young LLP as independent auditors of the company for the fiscal year ending February 1, 2015 as set forth in the proxy statement for this meeting.
Are there any comments or questions? Does anyone need a ballot or a proxy to change their votes? If there are none, I will close that matter at this time. Okay. At this time, I'd like to now consider the say on pay vote may have the proposal.
I move that the stockholders of PVH Corp. Approve on an advisory basis the compensation paid to our named executive officers as disclosed pursuant to the rules of the Securities and Exchange Commission in the proxy statement for this meeting.
Any comments or questions on the say on pay vote? Does anyone need a proxy or a ballot to change or to vote their shares? There being no questions, I close that matter at this time. I'd like to introduce our senior executive group that makes up our executive operating committee. I'd like to introduce Michael Schafer, Executive Vice President, Chief Operating and Chief Financial Officer.
Please hold your Ken Dwane, Chief Executive Officer, Heritage Brands and North America Home Staff. I'd like to introduce Steve Schiffman, our who on July 1 will become the Chief Executive Officer of Calvin Klein, currently now President and Chief Commercial Officer Gary Scheinbaum, the Chief Executive Officer of Tommy Hilfiger North America and finally, Mark Schneider, Group President, Heritage Brands. I'd also like to just make note of 1 very senior executive in our corporation who has been with us just about 20 years, has been a major contributor and recently announced his retirement, our Chief Information Officer, our Executive Vice President, John Peters. And I just would say is there are certain people in the company that have contributed over the years to really make us successful. We've grown very dramatically over the last 10 to 15 years and systems and logistics have never gotten in our way.
And a big part of that has been John who's really ensured that we've been able to take on new businesses, take on new responsibilities and really grow this corporation. Other companies get in trouble in these areas and I sleep very well at night knowing that John was there to make sure everything was going to be operating. So John, could you please stand up? I saw you before. All right.
John is going through transition. He's going to be with us for at least the next 6 months as he goes through this process. But we've also named John's successor who has been with our company now a little bit over 5 years, has been a major contributor as well and been a right hand to John. I'd like to just introduce John's successor, Eileen Mahoney. Okay.
With that, I'm going to move to the business presentation and quickly give you an overview of the company's performance, where we've gone over the last 12 months. Just bear with me one second. So, we continue to be a global leader in the apparel industry. We're the 2nd largest apparel brand company in the world. We've gone through major growth over this over a long period of time.
We have a long history of delivering strong sales and significant earnings growth. From the period and we always start with 2,003 as our baseline. That was the year we acquired Calvin Klein and really I think transformed the company from a domestic moderate brand, North American company to much more of a global player as we've grown. During that period of time, we've grown our revenues by 18% and our earnings per share by over 20%. Since we've announced the Wannaco acquisition, our stock has continued to perform.
We continue to be a strong performer against our peer group in the apparel index and we also when you compare it to the retail and the general market overall. Looking at our performance, we've outperformed our peer group in key areas for a 3 year period. When you look at our stock performance during that period of time, we're above this over a 3 year period, we're above the 75th percentile. Our overall rank above the 75th percentile as you look at the 3 year period when you compare us with our peers or with the S and P 500. Last year, fiscal 2013 was a major transition year for us, I'm going to talk about it.
Our stock did not perform what we would like to have seen it during that fiscal year. I just would remind you in the Q4 of 2012, we did announce the Wanaco acquisition. In that Q4 period, our stock from October through December rose by over 25%. That was a significant rise in the stock. And I think when you measure us and look at the 1 year data and you just move it to 15 months data, you see our performance is between the 50th 75th percentile.
Our goal for 2014, 2015 and beyond is to really get back to our earnings trajectory. We're making the investments in our business today to really give us the ability to continue to grow our key brands Tommy Hilfiger and Calvin Klein on a global basis and I'll get into that shortly. When you look at the company, as it really has transformed, if we were talking about this business 10 years ago, it would have been a moderate North American branded business. Today, Calvin Klein and Tommy Hilfiger represent over 75% of our revenues and over 85% of our profitability. From a geographic point of view, we are very diverse from a geographic point of view perspective.
We have significant international businesses as you measure both by revenue and profitability. 2 major growth areas for us are Asia and Latin America. That's a major change from just 2 years ago where we have direct operating businesses, and we are truly a global company today. So let's talk a little bit about the Tommy Hilfiger business. The Tommy business, it's just about a $6,500,000,000 retail sales business globally, classic American cool preppy with a twist as we define the brand, very strong global presence around the world.
Our 2 biggest markets, Europe and North America represent just about 80% of the business. For a brand that has its roots here in North America, I think it surprises everyone that Europe is in fact our largest region and where we have our strongest brand positioning. So very much a global platform for us and continues to be a driver of growth. The overall profitability here, it's a $3,500,000,000 business for us from a revenue that we report revenues and operate directly. On the overall brand matrix product categories, we control and directly operate 75% to 80% of this business directly.
It's been a significant strategy for us to bring more and more of these product categories in house. Our EBIT margins are approaching 14% here, so very highly profitable both here in North America as well as what we see throughout the international markets going forward. So one of the areas that we're constantly looking at is what opportunities exist for us globally with the Tommy Hilfiger brand outside the organic growth that we see happening here in North America and also in Europe. The brand in Europe has the last 3 to 4 years has been growing in the high single digit range. In North America, growth has also been in the high single digit range.
When we talk about moving forward, given our strong position here and how fast we have grown, we tend to target for North America and Europe growth for the brand in the 5% to 7% range. And where we see really outsized growth, double digit growth is in Latin America and Asia. For us, the vast majority of these businesses are licensed business with strong strategic partners in each of those areas. In Asia, we have 2 key business partners where we own 40% to 45% of the direct operated businesses there, China and India being those 2 key markets for us. We see China in the future as an opportunity over the next 3 to 5 years where we'll be taking a significantly hard look to determine whether we should be bringing that business back inside.
Today, the China business last year, retail sales was about $135,000,000 growing in retail sales was about $135,000,000 growing in the 20% range on a top line basis for us, very healthy profitability in that business that would of which we own 45%. Over the next 3 years, we have the opportunity from our license arrangement with them to buy the balance of that business and potentially bring it in house. The Wanaco acquisition has given us the opportunity to really look at that in a meaningful way. We have a much larger Calvin Klein business in China today with a strong regional Asia platform, systems, logistics, sourcing components there that allow us to have greater confidence that we could bring this in business in house, maximize its growth and bring that profitability to our shareholders as we go forward. The other area in Asia that we're looking at particularly the Korea market, the Hong Kong market, Southeast Asia, that's a true license business there that has a relatively short term license.
Each market slightly different, but somewhere between 4 to 6 years to remain on those licenses. And we are looking given again our presence with the Calvin Klein business in those markets where we're directly operating those businesses today. As those systems and that integration of the Wanaco businesses come online fully, it will give us the ability to then bring these businesses in house, do it in a very financially accretive way for our shareholders. So those are areas that we're really looking at in Asia. It's a similar story in Latin America with 2 key markets for us, Brazil and Mexico.
We have 2 great partners there. The Brazil business, we own about a little bit over 40% of that business today and we have the opportunity over the next 4 to 6 years to bring that business all in house. Again, our Tommy Calvin Klein business in Brazil is over $250,000,000 at retail. The Tommy business is much smaller, but growing geometrically at this point. So we have a strong business partner there and a real opportunity over the next 4 years to bring a business that we think would be highly profitable in a high growth region.
Mexico is also another area again where we are operating the Calvin Klein business throughout Mexico where we have a strong licensing partner in Mexico handling the Tommy Hilfiger business. But again, that license over the next 3 to 4 years will be expiring and we will then have the opportunity to potentially bring those businesses in house. That combined those combined businesses represent a little bit over $1,000,000,000 in retail sales today. They're growing at a double digit growth rate. So it really gives us the opportunity to bring high growth businesses fully in house in with a brand that we know very well that we're actively involved with in managing the business through our joint venture relationships and our licensing relationships in those areas.
So this is a significant growth vehicle for us as we go forward and something that beginning probably end of 2015 into 2016 will become a more meaningful portion of our growth as we look out. When you look at the overall brand growth for the last we've owned the brand since the beginning of 2010. We've had our compounded annual growth rate with the brand of about 10% during that period of time. We're projecting top line growth of between 8% 10% as we go forward. And by 2017 that would translate into $9,000,000,000 in global retail sales, making Tommy Hilfiger one of the largest global designer lifestyle brands in the world.
Moving to our other $8,000,000,000 today in global retail sales. You see the geographic breakdown. The U. S. And Canada represent just a little bit over 50 percent of the overall volume.
Latin America, Asia and Europe are significant growth and profit opportunities for us as we go forward. They represent combined just a little bit under 50%. We see ourselves growing faster outside the United States than within the United States. However, over the last 4 years, our growth in the U. S.
Has been in the high single digit range, really driven by outstanding performance in our own retail stores through the addition of square footage expansion as well as mid single digit comp store increases in our own retail business and our licensing partners, some of them G3 who handles all our women's business, Peerless who handles our tailored clothing, our fragrance business. Those partners have also driven growth that have been at least in the high single digit area as well. So the brand continues to outperform. Europe for us is the one region in the world where we are under penetrated and under profitability as well. It gives us an opportunity not only to grow the brand, but to do so in a very profitable position and to really turn a business that today is operating at breakeven to low single digit kind of operating margins and over the next 5 years to move that to double digit operating margins, which will be closer to 10%.
So a real opportunity as we go forward. If you look at this business model, it's a very healthy business model, just under $3,000,000,000 in reported revenues for the businesses that we operate directly coupled with our licensing revenues. These businesses when you look at the revenue, the breakdown is about 50% international, 50% North America. And one of the major initiatives for us in Calvin Klein and one of the real strategic pillars of the acquisition of Wanaco was bringing in house more of the business and controlling directly more of the product categories. And then there are no more iconic product categories than jeans and underwear for the Calvin Klein brand.
So the Waneka acquisition at this point in time as we go into 2014, we're approaching 45% to 50% of directly operating that brand. That would compare to Tommy Hilfiger that's closer to 80% that they are directly operating the brand. Ralph Lauren is close to 80% to 85%. So here the other opportunity is to bring more of this business in house and control it directly ourselves and I'll speak about that. But clearly the ability to do that in other categories would not have been available to us if it was not for the Waneka acquisition.
That really unlocked the ability to go after the other categories that they have because jeans and underwear are such a dominant apparel category for the Calvin Klein business. So when you think about where we are and how we're moving to really take advantage of what we think is a tremendous growth opportunity with the Calvin Klein brand, the first thing we're really changing is we're changing the way we operate. We're moving from being a licensor directly operating just about 10% of the business today almost 50% of the business. So really taking direct control and direct operation of the business. That requires significant investment for us to really get ourselves in a position to handle that.
And those investments have come over the last 12 months, second half of last year, twenty thirteen, the first half of this year, making significant investments in design, making significant investment in product and merchandising, making significant investments in people, over 200 additional slots either that were open or that we created to really bring better control, better talent to the organization in order to be able to take it to the next level. Really investing even more heavily than we have in marketing, particularly at point of sale, in the packaging of product. We in these two product areas, particularly jeans and underwear, we were not at the level we needed to be. So the product reinvention that's going on today, the elevation of product, particularly in our jeans business and particularly in North America and Europe, where we're really relaunching the brand, new product, a completely different sourcing base, a real upgrading of where the denim product has been. We're really trying to take it to the next level.
We're also looking to increase our channels, really becoming much more of having an omnichannel presence, direct to consumer online as a licensor not controlling all the product categories. It was more difficult to do that with the Calvin Klein brand. The Tommy Hilfiger business today has about $100,000,000 global ecommerce business that is profitable. We are trying to replicate that in Calvin Klein over the next 2 to 3 years as well. It's a major opportunity for us.
And now that we control the level that we do with the brand, we can sell directly to consumer in a financially prudent and a financially profitable way. And then the increased focus. Our approach, the way we've handled all of our branded businesses around the world is to have centralized control of what the brand stands for, to lay out its DNA, to reinforce that with our regional teams, but to allow the regional teams to design and merchandise the product to service their local needs. So we are very we very much believe in standing for the DNA of Calvin Klein, but recognize that it will be somewhat different here in North America than it is in Europe than it is in Asia. And we recognize that.
We do that by having separate design teams that meet quarterly to make sure we're all on the same page, make sure there's color and concepts that go out that we keep true to what the brand aesthetic is and what the brand DNA is. But we think this regional focus also allows us to meet the consumer needs in a brand appropriate way. So here is the kind of growth that we've had with Calvin Klein has been pretty phenomenal for us. We've had from 2,009 to 2013, about 8% compounded annual growth. We believe the opportunity is there for us to continue to grow this business at an 8% to 10% range as well.
That would put us by 2017 over $10,000,000,000 in global retail sales. Just to take a step back for a minute, when we acquired the Calvin Klein brand in 2,003, it was doing worldwide about $2,500,000,000 in global retail sales. Today, we've more than tripled that volume. And one of the best assets that we got with the brand when we bought it besides the heritage of the brand, the design talent and team that was there, the quality of the management that was there. The best asset we really got with the acquisition was Tom Murray.
Tom Murray at the time had Tom Murray at the time was the Chief Executive Officer President and Chief Executive Officer of Calvin Klein working for Barry Schwartz and Calvin Klein. He was doing that for a number of years. He came on board. We embraced Tom. He embraced us.
It's been a partnership that's really grown has really grown with the business. He's taken the business to just a completely another level and was side by side with us as we did the Wanaco acquisition to really help shepherd that acquisition, how it would impact the brand. He's been a visionary for the brand and we're going to severely miss Tom. He's with us for another 6 months. So he's not going away to make sure that Steve doesn't screw up and transitions appropriately.
But the success that PVH had would not be possible if it was for Tom Murray. So Tom, could you please stand up? Okay. Moving to our heritage businesses. This is what started us all.
This is the these are the businesses that paid the bills. These are the businesses that allowed us to do the Calvin Klein and the Tommy Hilfiger acquisition. These businesses do nothing but generate cash and then allow us to take that cash. We invested back into these businesses, but 75% of what's generated gets invested back into our growth vehicles within the company. This has historically been a very profitable business for us, particularly our wholesale businesses, which have basically operated at 10% operating margins across the board.
Today, the wholesale business is about 80% of our portfolio. Last year, we made the difficult decision to sell our BaaS division that was part of the corporation for about 25 years. It was the right thing to do for where the company was being positioned. It was a difficult personal decision for all of us, but it also brought us greater focus on where this business needs to really be, the focus on the brands. The challenging part of this business has been our retail business.
That's a business that is just marginally profitable for us. It's about $300,000,000 in sales. It's a work in process as we continue to invest in these businesses, somewhat contract these businesses. But we believe that we're on track to bring these businesses back to their historical level of profitability over the next couple of years. So that's our heritage business overall.
Dramatic market shares here when you think about one of the they just give us great leverage with our department store customers here in North America. In neckwear and dress shirts, we're about 50% of the overall market and really have a major foothold and no one could be in these businesses in retail in North America and not do bras and panties, particularly with our acquisition of the Warner's and Olga business with the Wanaco acquisition, men's swimwear, the premier swimwear brand in the world with Speedo, clearly gives us a major foothold in all of these businesses and really helps us to deal with our partners on the retail side of the equation. When you look at how we see the next couple of years, 2,003 13 2014 are really reset years for us. They're transition years as we get the business forward. They're investment years in order to really establish us as we go forward to grow the businesses.
We are well on our way to integrating the Wanaco businesses systems and integration online, really investing. We talked about that $60,000,000 of investment that's going on in the second half of last year and the first half of this year, really resetting the business, continuing to grow through all of that, but not at our historical levels of growth. We believe by the end of 2015 2014, particularly as we get into the Q4, we should start to see significant growth on our bottom line as we move forward into those years. Our guidance that we updated, we were disappointed with our Q1 results. Overall, it was a challenging environment, particularly here in North America.
We took our earnings down about 1% to 2%, about $0.10 range. We're disappointed we had to do that. We felt it was the right thing to do for the business, particularly because we felt in the second half of the year we had so much growth ahead of us. We felt we wanted to get this out and not just hang in there. So we made that decision.
I think we're well positioned as we go into the second half of the year. We are counting on the consumer spending to continue to improve as we're seeing it the last couple of months. The sentiment with consumer particularly here in North America, we've seen improve over the last 2 months. We are our expectation is that that will continue into the second half of this year. We believe by the Q3 the promotional environment in order to clear the merchandise that really built it from the Q4 of last year into the Q1 of this year in the overall macro retail environment will be well behind us.
Retailers are moving very quickly to get back on inventory plan levels. And we think the 3rd Q4 comparisons year over year from 2013 are much easier in the second half of the year and not as challenging as they were in the first half. So we feel we are very well positioned as we go into the second half of twenty fourteen. And I always like to stop here and say, as we recognize our strategic partners around the world, our sourcing partners around the world, our licensing partners around the world as well. So we also recognize we need to be measured by more than just our bottom line.
We need to be recognized how we treat people around the world, what the conditions in factories are around the world, the safety level in those factories around the world. The world is not a level playing field when it comes to those things. The things that are taken for granted here in North America and in Europe and the developed part of the world, it's not you can't take those things for granted in developing countries in Asia and Latin America. So you have to be even more focused on what the working conditions are, what the safety conditions are in those facilities. It's been part of who we are and what we stand for as a corporation.
It will continue to be that and it's areas that we continue to invest in as we go forward. So this is a major area of focus for us. There are more challenging areas to source around the world be it Bangladesh, the rest of Asia as we were talking about developing Eastern Africa as a place for sourcing. We're in there very early, really challenging that. One of the areas will be factory conditions and the appropriate treatment of workers.
That will be a priority for us. I think by us being there as part of the initial wave that goes into that continent, we will start in a better way. We will try to lay our culture and our values into that part of the world as well. And we want to be an agent for change to improve the working conditions in all of those developing countries as we've gone forward. So that's a big area for us.
The other areas we focus on, we focus on the impact we have on the environment through our manufacturing process, in our office, the recycling of products. It's an area that our associates around the world feel strongly about and it's an area that we want to continue to be a leader in. We also are very focused on our employees and our associates, the training that they get, that we give them the opportunity to advance their careers, that we pay appropriate salaries both from a benefits point of view, a salary, equity compensation, the entire package. Those are the areas that we focus on. Don't usually like to talk to our own horn, but these are just a number of the awards and listings that the company is listed on from most admired company, CRO Magazine, which is the corporate responsibility magazine.
We continue to be ranked in the top 50 companies globally around the world of all public companies. Given our size, I think that's an amazing accomplishment. And I think we really try to be a leader in this area. But we recognize 1st and foremost, our responsibility is to deliver appropriate financial returns to our shareholders and we want to do it in a way that we can wake up in the morning, feel proud of ourselves and be a great corporate citizen. So with that, I'll get back on soon.
That's our business presentation and I'll open the floor up to any questions, comments about the business or any other area that any of our shareholders may have. So someone is walking around with a microphone on both sides. Yes, I'm sorry, sir. If you please state your name, your affiliation.
Philip Berman, Portfolio Manager and Shareholder. Some comments and questions together. Under the leadership of Manny Sharico and Fred Gehring, PVH has leap markedly forward over the last few years to become a second to none top notch purveyor of luxury goods. The past year was widely anticipated to be a transition year where sales would not be up as in the past and earnings would be down slightly and margins would be off and it played out very much that way. After a stupendous run up in PVH stock over the last few years, we have seen PVH trade in a limited trading range.
It is noteworthy that the stock did manage to make a new high in 20 14. It's not unusual after an extended stock price run up over a short period of time to plateau and recharge until the next up phase becomes activated. Due to the lower earnings, we have a very high PE on the stock, which would not be acceptable to Wall Street, notwithstanding the fact that we have 2 of the best executives here running the show giving us good guidance, Manny Charico and Fred Gehring that is being allowed by Wall Street. Now some questions. With respect to our future business exposure, if you exclude our presence inside the shops at JCPenney, do we have significant exposure to the trend of malls being sold and considered an alternative as an alternative to non retail store use?
One of the challenges I think that retailers in general are dealing with is the number of stores that they operate. And I think if you spoke to every retailer in America, there's probably 5% to 10% of their stores that over time they'd like to close and recycle. As the Internet, e commerce has become a bigger portion of it, I think that's only put more pressure on that. So there are we have a number of stores that we service be it with JCPenney, Macy's, Elks, Dillard's, Sears that are in what I would describe as demalls that over the next 3 to 5 years may close down. For us, that's there's a potential minor sales exposure, but there's a higher profitability opportunity with the close down of those storesmalls because those are the retailers' worst performing stores.
Those are the stores where we have the most exposure from a merchandise markdown point of view. And I think it actually gives us the ability as they clean up some of their portfolio and it will be a gradual process over the next 2 to 4 years that we really see that as an opportunity for us to improve our overall profitability. So we look at it as an opportunity, one that we'll take advantage of over the next 4 years.
Up until now, Internet sales are replacing physical store sales at a nominal steady rate. If at some point Internet sales start to really soar and ramp up at a high double digit rate. Are we ready to handle that on our Internet sites?
So I think there's 2 components to that. We, on a wholesale basis, sell to our retail partners to their e commerce sites and that has been the fastest growth area of our wholesale businesses. So today between all our brands, we're doing over $350,000,000 in sales supporting our retail partners, macys.com, dillards.com, belks.com, supporting that business. And those tend to be some of our most profitable sales to the wholesale channel. We also sell to a number of the pure play retailers like Amazon.
And as they try to attempt to figure out the difference between selling books and videos and DVDs and selling fashion apparel and as that business starts to grow and becomes a more significant portion with them, we think our brand positioning there and the desirability of our brands make us highly desirable to those customers who today we sell, but are still a very tiniest portion of our business. The last piece is direct to consumers ourselves on our own Internet sites. Tommy Hilfiger, we're significantly down the road there and seeing double digit kind of growth on about $100,000,000 business by the end of this fiscal year and being done in a very profitable basis. The Calvin Klein business is at the infancy of that, but I think we'll quickly ramp up. We have the systems in order to support that logistics, the warehousing capabilities both internally and through 3rd party partners in order to capture that business.
So it is a focal point of ours. We're watching it very closely. Historically, this company has been a multi channel distributor of product via direct to consumers through our own regular price stores, through factory outlet stores, selling through the wholesale channel. I think we view this as an additional channel that we have to be prepared for and one that we will grow with and will provide us significant growth in the future. Okay.
Other apparel companies have moved to reacquire their outstanding licenses to consolidate and control a product. What is your view as to that with respect to PVH?
I think when it comes to the Tommy Hilfiger brand and the Calvin Klein brand, I think that's a strategy that over the next 2 to 5 years, you will see us employ more aggressively. We've done it in the past. I think we will be given now that we have the international operating platforms today in Europe that we didn't have 4 years ago, in Asia that we acquired a year and a half ago and in Latin America that we acquired a year and a half ago. It gives us the confidence, the ability and the management teams in order to service more of that business in those regional areas. So there's a real opportunity to start to think about bringing those businesses in house.
I think I outlined that in my presentation and it's an area that will continue to be a focal point for us.
It's obvious that JCPenney's physical revamping of its stores has helped sales. What can you say with respect to the same at Taylor and Macy's remodeling efforts?
Well, I think J. C. Penney first. I think J. C.
Penney went through a major transition, which I don't think I'm saying anything controversial. I say is with very limited success, to be kind, and I think has come out of it the last 9 to 12 months in a positive way. We were able to work with the JCPenney management team, the team that put in the transition, Ron Usen business in sportswear where today we have tremendous presentations at JCPenney, shop presentations where we didn't contribute the full value for those shops to build the capital and we're now very well established. They're doing very well there. But at the same time, we had some major classification businesses in JCPenney, dress shirts, neckwear, our women's intimate business that really suffered as J.
C. Penney suffered. So inventories were taken way down, the focus on those businesses that historically have been very profitable both for J. C. Penney and for PVH wasn't there.
And now with the new management team in place, those classification areas have become a refocus. So for the last 9 months, we've seen our business significantly bounce back in women's intimates, in dress shirts and neckwear and some of our classification sportswear businesses and have been able to maintain our shop presentations with IZOD and with Van Usen to continue to grow those businesses. So we are very happy how we are positioned with JCPenney today. We're also very excited about that it seems like JCPenney from a financial point of view has made a turned a major corner that the people aren't asking me today, will J. C.
Penney survive? The question is, how much will J. C. Penney grow? So I think that conversation has changed.
Your second part of your question, Macy's and some of the other department stores, we've got, I think, second to almost anyone else, the best presentation on the floor with Calvin Klein and Tommy Hilfiger in those Macy's doors. The brand is presented in the best possible way in all of their A doors. The only exception to that I would say is Calvin Klein Jeans, which is in the process of being corrected because there's a lack of investment on the part of Wanaco in those businesses. We are course correcting that, getting reestablished back in their top 100 doors, building shops in those top 100 doors. And I think the presentations will only continue to grow there.
As our business last year with Macy's with the Calvin Klein brand grew in the high single digits despite the jeans business being down over double digits And with our Tommy Hilfiger business that the brand continued to grow also in the high single digit range. So I think we are well positioned aligned with Macy's with 2 powerhouse brands that will take them forward.
How are we doing in the accessories section category against the very heavy peer group competition?
Well, that's for us, the Calvin Klein and both Tommy play in the accessory area. I think different than some of those brands where they consider themselves accessory companies or some of them even luxury accessory companies, we really have never taken that position. We are a lifestyle designer brands, both Calvin and Tommy that have a strong accessory positioning on the floor. Those businesses are growing for us double digit and will continue to grow both here in North America and internationally.
Thank you.
You're very welcome. Any other questions? Good morning.
Good morning. David Schilling from the Interface Center on Corporate Responsibility, an organization of shareholders, faith based social responsible investors. And Manny, it's great to be here. A couple of points, last year, we had our annual meeting at the same time. Sorry not to be here to see the progress the company is making.
And number 2, I did talk to Manny a little bit beforehand and told him that as a United Methodist clergy, I usually speak about 30 minutes and I would keep it under that. And he was really pleased to hear that. But it's interesting, I just want to I don't really have a question. I think it's more looking at the trajectory of the company in an organization that's been engaging directly with PVH since the late 80s. I joined the staff in 1994.
Bruce Klatzke was the CEO. We had lots of meetings related to human rights, which he really deeply believed in. Lots of questions around issues related to labor rights in Camosa 1 and 2 not suppliers, but those were factories in Guatemala that were owned by PVH. And if you look at when the company adopted its sort of code, human rights, labor rights code for its suppliers, it really began to move. And Bruce was a part of the White House Apparel Industry partnership as I was.
The company stepped forward to look at sweat shop issues. And I think Manny that's been really that framework you have built on. And I think for us as faith based investors, social responsible investors that's critical. And it's not like this is something that is on the side of the company. I think it's important for shareholders to know and underscore that you're not just saying that CSR is important to the company.
Those of us that have been working since 'seventy one as a coalition of shareholders see that. And I think your leadership, the leadership of Rita Rodriguez on the Board, it's so critical to have that Corporate Responsibility Committee, which is the oversight and really looks at how things are moving. And then, of course, the staff that is there, Melanie Steiner doing a tremendous job and her staff and reporting to Mike Schaeffer. Let's give a little round of applause. Don't hold your applause.
We try to right those wrongs that happen. But I think just a couple other points. One, we work with literally hundreds of companies in many sectors and probably all the apparel companies that you relate to in a business sense. And it's rare that a company gets a comfort level working with a whole range of stakeholders in multi stakeholder initiatives like the Fair Labor Association that came out of that White House Apparel Industry Partnership. Still, you're involved, there with a range of companies, some non governmental organizations, consumer groups, etcetera.
That's so important. Global Social Compliance Program, which is an initiative of companies in the U. S, Europe, Australia, Asia, looking at trying to harmonize approaches to supply chain compliance. So there doesn't have to be all these duplicative audits and money and resources can be put into change. So the company has really stepped forward.
But I'd like to underscore just the role that the company has played since the Tazreen fire in Bangladesh, which took 112 lives, the Rana Plaza building collapse, which was just a horrendous shock wave to every person irrespective, because of the almost 1200 that were killed and way over 2,500 that were injured. The company was the 1st U. S. Company to really get your roll up your sleeves and get into the accord for the fire and building safety, which is a really unique kind of interaction, partly because it's trade unions, it's civil society, it's working with the government, it's trying to develop sustainable change. So with your representatives on the steering committee, I think it's just been a tremendous model.
And I can't tell you how much your leadership in this issue has built a sort of cache of real respect from trade unions, from unions, from non governmental organizations, from those that may be seen as critics of other companies, because you really have moved the agenda and have been willing to take all those trips to Bangladesh and to work through all these thorny issues to try to protect lives in factories in Bangladesh. And that we hope can be accelerated globally. So, A, we appreciate your leadership. We'll continue to push in issues. I think one of the areas still in the supply chain is the wage issue.
We see it in Bangladesh where the minimum wage was $38 a month, now changed to $68 a month, still not enough. The issues around human trafficking, modern slavery, the ILO, the International Labor Organization, just last week, June 11 adopted the Forced Labor Convention that updated the one that was adopted in 1930. And there, it's really focusing on human trafficking and modern day slavery. And your company is really trying to get a handle on this. ICCR is really pressing companies to prohibit the payment of fees of workers anywhere in the supply chain.
And we'll be certainly talking about that. The reason is it tends to lead to bonded labor. Passports are taken. Often the written contract is never there, so they're entrapped. So the company's DNA is there and we want to see some more progress there.
But I'm here to talk on behalf of the ICCR members who are shareholders in PVH and in our operations really looking at your annual report, getting the feedback on your CSR reports, which have really improved. So while there's still progress to be made, and I really want to commend the company for its leadership and for really moving beyond sort of CSR talk to walking the walk. Thank you.
Any other questions or comments? If there are no further questions, we'll move to the report of the inspectors of election on voting and the conclusion of the meeting. This is Michelle O'Donnell, our Assistant Secretary of the company and she's here to read the results. I'd also like to thank her for all her hard work to put this whole meeting together and orchestrate it and thank her for everything she does at PVH.
The Inspector of Elections has certified the results of the matters to be voted upon at this 20 14 Annual Meeting of Stockholders. The certification which will be appended to the minutes of this meeting provides in part that the annual meeting was held pursuant to notice duly given. The inspector was sworn to execute faithfully duties of Inspector of Election with strict impartiality and according to the best of her ability. There were present in person or by proxy holders of 74,000,000,39,200 and 23 shares of common stock or 89.99 percent of the shares eligible to be voted at the meeting. A quorum for all purposes was present at the meeting.
Each of the 12 nominees for Director received a majority of the votes cast and was declared to be the duly elected for a term of 1 year. The advisory proposal to approve the compensation paid to our named executives was approved by 97.6 percent of the votes cast and was declared to have been duly adopted. The resolution ratifying the appointment of Ernst and Young LLP as auditors for the fiscal year ending February 1, 2015 received an affirmative vote of a majority of the shares present and was declared to have been duly adopted.