PVH BELIEVES NEW CALVIN KLEIN PRODUCT IS ‘TOO ELEVATED’, PLANS FIXES FOR BRAND
Calvin Klein’s corporate parent company PVH is saying its makeover is a bit too fashion forward for its core customer.
“The Calvin Klein brand continues to command strong brand health and desire in all markets; however, the business in the third quarter experienced softness,” said Emanuel Chirico, chairman and chief executive officer of PVH. “While many of the product categories performed well, we are disappointed by the lack of return on our investments in our Calvin Klein 205W39NYC halo business and believe that some of the Calvin Klein Jeans relaunched product was too elevated and did not sell through as well as we planned.”
But this isn’t setting the company back. Chirico continued, “As we move into 2019, we believe the consumer will increasingly feel more connected to the brand as we offer a more commercial product and marketing experience to capture the long-term opportunity for our Calvin Klein business.”
Revenue in the Calvin Klein business for the third quarter increased 2 percent to $963 million compared to the prior year period. Calvin Klein International revenue increased 3 percent to $482 million compared to the prior year period, driven by growth in Europe. International comparable store sales increased 1 percent. Calvin Klein North America revenue increased 1 percent to $481 million compared to the prior year period, as growth in the wholesale business was partially offset by a 2 percent comparable store sales decline.
On the other hand, PVH’s Tommy Hilfiger business is still showing strong resolve. “Our Tommy Hilfiger business truly outperformed, with strength across all regions, product lines and channels of distribution,” added Chirico. “The brand continues to gain meaningful market share, as our consumer-centric brand approach and consistent brand execution are driving global momentum.”
Revenue in the Tommy Hilfiger business for the quarter increased 11 percent to $1.1 billion compared to the prior year period. Tommy Hilfiger International revenue increased 16 percent to $708 million compared to the prior year period, driven by continued strong performance across all regions and channels, including a 13 percent increase in comparable store sales. Tommy Hilfiger North America revenue increased 3 percent to $424 million compared to the prior year period, primarily attributable to strength in the wholesale business, as comparable store sales were relatively flat.
Chirico concluded, “Overall, we remain confident that we are well positioned to execute our strategic priorities through the efforts of our talented associates, enabling us to deliver long-term stockholder value.”
