PVH to bring women’s licenses back in house from G-III
U.S. fashion giant PVH Corp. announced on Wednesday that it has extended most of its license agreements with G-III Apparel Group, with plans to bring its core women’s product categories back in-house.
As part of the agreement, the Calvin Klein and Tommy Hilfiger brands in U.S. and Canada, particularly the women’s North America wholesale business, will now have staggered expirations from 2025 through 2027.
The aim is to create a smooth transition of the core product categories back to PVH at the end of the extended terms. PVH said it will work closely with G-III over the coming years to ensure an uninterrupted transition for consumers and wholesale partners for both brands.
“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,” said Stefan Larsson, chief executive officer, PVH Corp.
“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.”
Zac Coughlin, chief financial officer, PVH Corp., added: “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% 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 internalize the direct operations of these businesses.”
On Wednesday, PVH also announced that third quarter revenue decreased 2% to $2.281 billion compared to the prior year period. Tommy Hilfiger revenue decreased 4%, while Calvin Klein revenue increased 1% compared to the prior year period.
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