PVH Corp. to Operate Businesses By Leveraging Its European
Platform
NEW YORK--(BUSINESS WIRE)--Mar. 5, 2012--
PVH Corp. [NYSE: PVH] 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 Hilfiger brought 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 the Calvin Klein Jeans license and their operation of the Calvin
Klein Underwear brand 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 by Kevin 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 in Europe. 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. Brands/lifestyles include Calvin Klein
Collection, ck Calvin Klein, Calvin Klein, Calvin
Klein Jeans and Calvin Klein Underwear. Product lines under
the various Calvin Klein brands include women’s dresses and
suits, men's dress furnishings and tailored clothing, men’s and women's
sportswear and bridge and collection apparel, golf apparel, jeanswear,
underwear, fragrances, eyewear, women’s performance apparel, hosiery,
socks, footwear, swimwear, jewelry, watches, outerwear, handbags, small
leather goods, and home furnishings (including furniture). For more
information, please visit calvinklein.com.
PVH Corp., one of the world’s largest apparel companies, owns and
markets the iconic Calvin Klein and Tommy Hilfiger brands
worldwide. It is the world’s largest shirt and neckwear company and
markets a variety of goods under its own brands, Van Heusen, Calvin
Klein, Tommy Hilfiger, IZOD, ARROW, Bass
and G.H. Bass & Co., and its licensed brands, including Geoffrey
Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL
Michael Kors, Sean John, Chaps, Donald J. Trump
Signature Collection, JOE Joseph Abboud, DKNY, Ike
Behar and John Varvatos. For more information, please visit pvh.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995:
Forward-looking statements made in this release, including, without
limitation, statements relating to the future plans, strategies,
objectives, expectations and intentions of PVH Corp. and its
subsidiaries (collectively, “PVH”) are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy, and some of which might not be anticipated,
including, without limitation, the following: (i) PVH’s plans,
strategies, objectives, expectations and intentions are subject to
change at any time at its discretion; (ii) in connection with the
acquisition of Tommy Hilfiger B.V. and certain affiliated companies, PVH
borrowed significant amounts and will have to use a significant portion
of its cash flows to service such indebtedness, as a result of which PVH
might not have sufficient funds to operate its businesses in the manner
it intends or has operated in the past; (iii) acquisitions and issues
arising with acquisitions and proposed transactions, including without
limitation, the ability to integrate an acquired entity, into PVH with
no substantial adverse affect on the acquired entity’s or PVH’s existing
operations, employee relationships, vendor relationships, customer
relationships or financial performance; and (iv) other risks and
uncertainties indicated from time to time in PVH’s filings with the
Securities and Exchange Commission.
The Company does not undertake any obligation to update publicly any
forward-looking statement, whether as a result of the receipt of new
information, future events or otherwise.
Source: PVH Corp.
Calvin Klein, Inc.
Malcolm Carfrae
EVP, Global
Communications
212 292 9799
malcolmcarfrae@ck.com
Jennifer
Crawford
VP, Corporate Communications
212 292 9795
jennifercrawford@ck.com
or
PVH
Contact/Investor Relations:
Dana Perlman
Treasurer, SVP
Business Development and Investor Relations
212 381-3502
