IN 2016 GLOBAL RETAIL SALES
COUNTRIES OF DISTRIBUTION
The CALVIN KLEIN brands — Calvin Klein By Appointment, CALVIN KLEIN 205W39NYC, CK Calvin Klein, CALVIN KLEIN, Calvin Klein Jeans and Calvin Klein Underwear — provide us with the opportunity to market products both domestically and internationally at various price points, through multiple distribution channels and to different consumer groups. The CALVIN KLEIN brands are also licensed for a range of products, including fragrance, women's apparel, footwear, eyewear, watches and jewelry in various regions. Global retail sales of products sold under the CALVIN KLEIN brands were approximately $8.4 billion in 2016.
A tiered-brand strategy was established for CALVIN KLEIN to provide a focused, consistent approach to global brand growth and development that preserves the brand's prestige and image. Each of the CALVIN KLEIN brands occupies a distinct marketing identity and position.
"With the appointment of Raf Simons, CALVIN KLEIN began a momentous new chapter in the brand’s history. We believe this new direction will further strengthen our premium positioning worldwide and pave the way for long-term global growth."
- Steve Shiffman
Chief Executive Officer, Calvin Klein
A new brand under which we offer distinct looks handcrafted and made to measure in New York City. Calvin Klein By Appointment is a tribute to the CALVIN KLEIN atelier and the full range of handcrafting skills its artisans offer, from embroidery to tailoring.
CALVIN KLEIN 205W39NYC
Our "halo" brand, under which men's and women's high-end designer apparel and accessories, as well as items for the home, are sold. This line was formerly called Calvin Klein Collection. Representing pure, refined luxury, distribution is through our wholesale partners across the globe (in stores and online), through our retail flagship store on Madison Avenue in New York City, as well as on calvinklein.com in select countries.
Our "contemporary" brand, offering modern, sophisticated, fashionable items including apparel and accessories. This line was formerly called Calvin Klein Platinum. Offerings are sold on calvinklein.com in the U.S. and distribution is growing internationally across select markets.
Our "master" brand includes offerings such as men's and women's sportswear, outerwear, fragrance, accessories, footwear, performance apparel, men's dress furnishings, women's dresses, suits and handbags and items for the home. Distribution is primarily in North America through our wholesale partners (in stores and online), free-standing stores, select pure play digital commerce retailers, and on calvinklein.com in select countries, and is expanding internationally in select markets.
Offerings under this label include men's and women's jeans and related apparel, which are distributed worldwide, and accessories, which are distributed in Europe, Asia and Brazil. With roots in denim, it is the casual expression of the CALVIN KLEIN brand and is famous for its unique details and innovative washes. This line is sold in our own stores, through our wholesale partners (in stores and online), select pure play digital commerce retailers and on calvinklein.com in select countries.
As one of the world's leading designer underwear brands for men and women, Calvin Klein Underwear is known across the globe for provocative, cutting-edge products and marketing campaigns, consistently delivering innovative designs with superior fit and quality. Offerings under this label include men's and women's underwear, women's intimates, sleepwear and loungewear. Calvin Klein Underwear is sold in our own stores, through our wholesale partners (in stores and online), select pure play digital commerce retailers and on calvinklein.com in select countries.
CALVIN KLEIN continues to experience compelling brand and cultural relevancy after nearly 50 years. The hiring of universally acclaimed designer Raf Simons as Chief Creative Officer in August 2016 provides a significant opportunity to unify the CALVIN KLEIN brands under one creative vision, as Raf leads the creative strategy for the portfolio of CALVIN KLEIN brands globally, including design, marketing and communications, and visual creative services. This marks the first time since Mr. Klein was at the company that Calvin Klein’s creative strategy will be under one visionary. We believe that Raf’s execution of his strategy will strengthen CALVIN KLEIN’s premium positioning worldwide and further commercialize the Calvin Klein business, with a goal of achieving $10 billion in global retail sales over the next few years
The core of CALVIN KLEIN is its global 360° marketing campaigns, which are designed to engage consumers through provocative, modern, sensual and iconic lifestyle imagery. The brand’s recent campaigns have been highly visible and commercially successful with consumers. Additionally, CALVIN KLEIN continues to increase its engagement with youth-minded consumers, which we believe will create an opportunity to build loyalty over the long-term.
For Spring 2016, the popular #mycalvins social media campaign was evolved into a 360° lifestyle campaign, with a continued focus on digital consumer engagement. Its call-to-action, “I _____ in #mycalvins,” continued through the Fall season and asked the consumer “What do you do in yours?” The Spring and Fall 2016 campaigns each featured a diverse group of pop culture influencers, including actors, musicians, athletes, fashion icons and artists. Through the campaigns, we took a significant step toward showcasing the “World of CALVIN KLEIN” with products offered under each of the CALVIN KLEIN brands featured together in a true lifestyle presentation.
In Spring 2017, CALVIN KLEIN launched its American Classics campaign, which included works by artist Andy Warhol. The campaign infused elements of the arts and high fashion with a sense of the everyday. CALVIN KLEIN expanded upon this campaign in Fall 2017, with images shot by photographer Willy Vanderperre. In the campaign imagery, a cast of models was photographed against a series of billboards that were erected in the California desert.
CALVIN KLEIN's efforts are being recognized, with CALVIN KLEIN receiving the Fashion Media Awards Ad Campaign of the Year award. In addition, CALVIN KLEIN was ranked #9 on the L2 Digital IQ Index: Luxury China in 2016 and #12 on the L2 Digital IQ Index: Fashion in 2016, which ranks the digital competence of global fashion brands across site, digital marketing, social media, mobile and tablet. Most recently, Raf was presented with the awards for both the Womenswear Designer of the Year and the Menswear Designer of the Year at the 2017 Council of Fashion Designers of America Fashion Awards; notably, Calvin Klein himself was the only other designer to receive both honors the same year.
Calvin Klein has a dedicated global communications team, which encompasses the brand’s communications, public relations, celebrity dressing and special events. In 2016, over $330 million was spent globally in connection with the advertisement, marketing and promotion of the CALVIN KLEIN brands, with approximately 45% of these expenses being funded by Calvin Klein's licensees and other authorized users of the brands.