We believe Calvin Klein is one of the best known designer names in the world, offering a modern design aesthetic. The Calvin Klein brands — Calvin Klein Collection, ck Calvin Klein and Calvin Klein — provide us with the opportunity to market products both domestically and internationally at higher price points, in higher-end distribution channels and to different consumer groups than most of our Heritage Brands business product offerings.
In order to more efficiently and effectively exploit the development opportunities for each brand, a tiered-brand strategy was established to provide a focused, consistent approach to global brand growth and development. Each of the Calvin Klein brands occupies a distinct marketing identity and position that preserves the brand’s prestige and image.
Calvin Klein designs all products and/or controls all design operations and product development and oversees a worldwide marketing, advertising and promotions program for the Calvin Klein brands. We believe that maintaining control over design and advertising through Calvin Klein’s dedicated in-house teams plays a key role in the continued strength of the brands. In 2010, over $300 million was spent globally in connection with the advertisement, marketing and promotion of the Calvin Klein brands and products sold, and these expenses are principally funded by Calvin Klein’s licensees and other authorized users of the Calvin Klein brands.
Worldwide retail sales of products sold under the Calvin Klein brands were approximately $6.7 billion in 2010.
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Our Calvin Klein business primarily consists of (i) Calvin Klein Licensing – a licensing organization managing arrangements with over 40 third parties and our own Calvin Klein Collection men’s and women’s wholesale high-end apparel and New York City flagship businesses and (ii) Calvin Klein Apparel – including Calvin Klein dress furnishings, men’s better sportswear businesses and Calvin Klein retail stores.
Calvin Klein Licensing
- We have licensing and similar arrangements worldwide for use of the Calvin Klein brands for (i) a broad array of products including women’s sportswear, jeanswear, underwear, fragrances, eyewear, men’s tailored clothing, women’s suits and dresses, women’s performance, men’s and women’s golf apparel, hosiery, socks, footwear, swimwear, jewelry, watches, outerwear, handbags, leather goods, home furnishings (including furniture) and accessories and (ii) to operate retail stores outside of North America
- Calvin Klein’s largest licensing partners in terms revenue earned by Calvin Klein in 2010 were: (i) The Warnaco Group, Inc., which accounted for approximately 42% of such revenue, (ii) G-III Apparel Group, Ltd., which accounted for approximately 14%, and (iii) Coty, Inc., which accounted for approximately 12%
- We also market the high end Calvin Klein Collection brand of men’s and women’s apparel and accessories offerings through our Calvin Klein Collection global flagship store on New York City’s Madison Avenue as well as through our Calvin Klein Collection wholesale business.
Calvin Klein Apparel
- We operate our Calvin Klein dress furnishings and men’s better sportswear businesses in North America; and
- We operate Calvin Klein retail stores located principally in premium outlet malls in the United States and Canada.
Calvin Klein Financial Summary
2011 SUMMARY FINANCIALS