The arrangement will allow for a smooth transition of core product categories back to PVH at the end of the extended terms. PVH intends to work in close partnership with G-III over the next several years to ensure an uninterrupted and responsible transition for consumers and wholesale partners for both brands, the company said in a media statement.
“This action is an important next step as part of the PVH+ Plan, PVH’s multi-year strategic growth plan, to unlock the full potential of our two iconic brands in the North America market. By bringing these core product categories in-house over time, we will be able to draw on the power and expertise of our global brand teams and have them fully connected to the demand driven supply chain we are developing. We are grateful to G-III for their partnership and long-term commitment to Calvin Klein and Tommy Hilfiger in North America,” Stefan Larsson, chief executive officer, PVH, said.
American clothing company, PVH, has announced that it has extended most of its license agreements with G-III Apparel group for Calvin Klein and Tommy Hilfiger in the US and Canada, largely pertaining to the women’s North America wholesale business. Both the Calvin Klein and Tommy Hilfiger agreements will now have staggered expirations from 2025 through 2027.
“The multi-year transition period will enable us to bring these core product categories, which represented approximately one-third of our global licensing revenue, and less than 10 per cent of our consolidated EBIT in 2021, back in-house in a disciplined and methodical way. G-III will continue to be a key partner as we work together over the next few years to internalise the direct operations of these businesses,” Zac Coughlin, chief financial officer, PVH, said.
Fibre2Fashion News Desk (GK)
