PVH Corp., an American clothing company which owns brands such as Van Heusen, Tommy Hilfiger, Calvin Klein, IZOD, Arrow, Warner’s, Olga, True & Co., and Geoffrey Beene, said it is likely to exit from high-end collection of Calvin Klein apparel.
The company may close down the brand’s flagship store on New York’s Madison Avenue. The line didn’t perform as expected for the retailer, it said.
It is also being reported that the company also said it was in talks with its North America apparel partner G-III Apparel Group Ltd. to license out the brand’s women’s jeans unit.
G-III also operates Tommy Hilfiger women’s business, which helped boost PVH’s strong financial results in the fourth quarter, lifting its shares nearly 18 percent in morning trading.
“We believe this was the right decision for the long-term health of the brand (Calvin Klein) as the existing high-end business was not resonating with our core consumer,” Chief Executive Officer Emanuel Chirico said on a post earnings call.
Fashion missteps at high-end Calvin Klein’s 205W39NYC line of clothing have hit sales in recent quarters as customers baulked at the high prices of the ready-to-wear luxury clothing label that offered oversized sweaters, tie-dyed and silk dresses.
The New York-based company said the decision to exit the label and license out its women’s jeans unit would lower its fiscal 2019 revenue by US $ 100 million.
However, the restructuring of Calvin Klein and the lack of a need for big promotions in its jeans business were likely to improve profit margins in the second half of 2019, the company said.
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