PVH's Calvin Klein to reacquire its European business
PVH Corp. announced that its Calvin Klein, Inc. subsidiary was exercising its rights to reacquire the existing license agreements held by Warnaco for the distribution and sale of ck Calvin Klein apparel and accessories and the operation of retail stores in Europe, effective in 2013. To support this development, PVH International, a division of PVH, which also manages the Tommy Hilfiger brand globally, will establish a dedicated team to operate the ck Calvin Klein apparel and accessories businesses in Europe.
“Bringing the ck Calvin Klein European operations in-house creates an opportunity for us to better develop the Calvin Klein brand in Europe by leveraging PVH's European infrastructure,” said Tom Murry, President & Chief Executive Officer, Calvin Klein.
“PVH's 2010 acquisition of Tommy Hilfigerbrought with it an excellent European operating platform and distribution network with dedicated market expertise. We feel that this established platform, under the leadership of Fred Gehring, CEO of Tommy Hilfiger and PVH International, combined with the strength of our brand and Calvin Klein's innovative in-house design and marketing teams, will accelerate the growth of the business from where it is today.”
Mr. Gehring said, “The European ck Calvin Klein apparel, accessories and retail business represents an exciting opportunity for us to take a leading global designer brand and build on the existing business. By directly integrating the business into our European organization and commercial infrastructure, we believe the ck Calvin Klein European business has the potential to reach approximately $500 million in sales in the next 5 to 7 years.”
Mr. Murry concluded, “We have a longstanding partnership with Warnaco that will continue and have been pleased with the success they have had with theCalvin Klein Jeans license and their operation of the Calvin Klein Underwearbrand around the world. We feel that this new structure will allow both of our organizations to maximize their core competencies to the benefit of the Calvin Klein brand.”
ck Calvin Klein is Calvin Klein's “bridge” brand. The apparel line is designed byKevin Carrigan, who serves as the Global Creative Director for the brand, as well as for the Calvin Klein (white label) and Calvin Klein Jeans brands. At the end of 2011, the ck Calvin Klein brand represented approximately $1 billion in global retail sales, achieved primarily in Asia and Europe, and had an established network of 89 full-price freestanding stores, of which 17 are inEurope. The brand is also operated in Asia and Japan by experienced licensing and retail partners.
Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world. It designs and markets women's and men's designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide.
PVH Corp., one of the world's largest apparel companies, owns and markets the iconic Calvin Klein and Tommy Hilfiger brands worldwide.
Phillips-Van Heusen Corporation