PVH Corp. buys Tommy Hilfiger license in Central, Southeast Asia
PVH has entered into a definitive agreement with Dickson Concepts Limited for the deal, which will include the acquisition of the Tommy Hilfiger brand in Hong Kong, Macau, Taiwan, Singapore and Malaysia, along with certain related leases and retail assets.
The transaction is expected to close in the second quarter of 2019. Terms of the transaction were not disclosed.
“This transaction demonstrates our commitment to making strategic investments to support the long term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region,” said Chairman and CEO of PVH Corp., Emanuel Chirico.
Tommy Hilfiger has been a bright spot for the U.S. apparel group, especially as Calvin Klein, PVH’s second biggest segment in sales after Tommy Hilfiger, has been struggling.
Daniel Grieder, CEO of Tommy Hilfiger Global, noted that the deal will allow the company to execute “a more fully integrated strategy for the Greater China market,” and ultimately grow.
“This transaction should allow us to further realize the growth opportunities that exist for the Tommy Hilfiger brand by enabling the introduction of a wider range of product lines, and offering consumers a more immersive and elevated brand experience. Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business and invest further in driving the expansion of the brand,” he added.
In PVH's most recent quarter, Tommy Hilfiger posted a 11 percent rise in quarterly revenue reaching $1.1 billion. Likewise, Calvin Klein’s third-quarter earnings, before taxes and interest, fell to $121 million, from $142 million a year earlier.
PVH is expected to report its annual results on Wednesday.
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