CK Parent Company Continues To Sell Brand

The third Nomura Retail Retail Nomura retail summit, held by Emanuel Corp, chief executive of PVH Calvin Klein and Tommy Hilfiger, said that P may continue to sell its traditional brand businesses.

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< p > Emanuel Chirico indicates that EBITDA of two brands can directly pform cash flow compared to Calvin Klein and Tommy Hilfiger, and the operating profit margin of the traditional brand department is about 10%, which is a very backward business mode. Chirico

According to Emanuel Chirico's interview with WWD, the two brands of Izod and Van Heusen are relatively hard, earning about $300 million, while operating profit is still below the average operating profit margin of the sector, which is only a low single digit.

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In the 2013/2014 financial year ending February 2, 2014, the total revenue of Heritage Brands traditional brand division of PVH Corp. (NYSE:PVH) was $1 billion 986 million 500 thousand, an increase of 18.6% over the same period of 1 billion 675 million 600 thousand dollars a year. Despite the increase in revenue, the EBIT fiscal pre tax profit in the 2013/2014 financial year was only $90 million 3 thousand, a sharp decline compared with 114 million 600 thousand US dollars in the same period last year. P

As the Department came mainly from the acquisition of Warnaco, it accounted for 1.541 of the pre tax profit in accordance with non GAAP.

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< p > Tommy Hilfiger income is 3 billion 433 million 200 thousand US dollars, although it is less than two times that of the traditional brand department, but the profit before tax is up to 503 million US dollars, which is 5 times higher than that of the traditional brand department, while the 2 billion 766 million 600 thousand Calvin Klein Klein pre tax profit is only 106 million 300 thousand US dollars, but the 2013/2014 fiscal year is the first financial year of Calvin Klein business which belongs to PVH. After adjusting, the profit before tax is actually 431 million 500 thousand US dollars.

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In P, October 2013, PVH issued a similar signal, selling its shoes business G.H. Bass & Co. for $50 million, taking over the G-III Apparel Group Ltd. (NASDAQ:GIII), which has been working closely with PVH.

PVH Corp. (NYSE:PVH) CEO Emanuel Chirico said in a paction statement that the sale of the business is because the group will focus on Calvin Klein and Tommy Hilfiger leading lifestyle brands.

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< p > the current PVH Heritage Brands traditional brand departments include IZOD, Van Heusen, ARROW, Speedo, Warner "s," and other private brand businesses, as well as the 12 brand agency businesses such as ",", "," and "Xun".

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While P is trying to strip off traditional brand businesses, Emanuel Chirico reveals that it may recover Calvin Klein and Tommy Hilfiger brand dealership and develop more categories for Calvin Klein.

According to Emanuel Chirico, the two brands of Calvin Klein and Tommy Hilfiger can reach $1 billion 500 million to $2 billion 500 million in 2015 and 2016.

In the 2013/2014 fiscal year, Calvin Klein came from royalties, advertising and other revenues totaling $262 million 900 thousand, and Tommy Hilfiger was less than $92 million 880 thousand.

According to Emanuel Chirico, only Tommy Hilfiger is worth $500 million in Brazil, China, South Korea and South Asia.

These agents Emanuel Chirico hope that the group will slowly recover or operate through the joint venture. PVH announced in October 2013 that it had a joint venture with Gazal Corporation Limited (ASX:GZL), an Australian listed company, PVH Brands Australia Pty. Pty., which will be responsible for the company's subsidiary business, and is responsible for distributing the brand products in Australia, New Zealand and the South Pacific island countries for a period of 20 years.

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< p > in addition to management rights, Emanuel Chirico hopes Calvin Klein can replicate the success of Tommy Hilfiger and get involved in sports dress, a href=, //www.sjfzxm.com/news/index_c.asp, shoes, /a, accessories and so on.

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< p > despite the fact that the two brands of < a href= "//www.sjfzxm.com/news/index_c.asp" > Calvin Klein < /a > and a href= "//www.sjfzxm.com/news/index_c.asp" > Tommy Tommy < < > can already bring nearly $7 billion annual sales to the company, it does not seem to satisfy two brands.

At the beginning of April 2014, PVH Corp. (NYSE:PVH) acquired the minority shareholding of Karl Lagerfeld BV, the designer of Karl Lagerfeld, and the details and amount of the paction were not disclosed.

According to the paction statement, PVH will get the Karl Lagerfeld North American agency, and Karl Lagerfeld has been focusing on the development of Europe.

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< p > currently, shareholders of Karl Lagerfeld BV include Apax Funds, Chou Group, designer Tommy Hilfiger and chief executive officer of Tommy Tommy.

PVH and Karl Lagerfeld have a lot of origins. The Karl Lagerfeld brand was created by the designer herself since 1984.

In 2005, it was bought by Tommy Hifiger group.

In 2006, Apax Partners bought Tommy Hifiger group for $1 billion 600 million.

Subsequently, Tommy Hifiger group was sold to Philips-Van Heusens (PVH) for $3 billion by Apax Partners, but Karl Lagerfeld brand is still Apax, not sold as part of the Tommy Lagerfeld.

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< p > Calvin Klein and Tommy Hilfiger have been acquired by PVH before, starting from agency right, Karl Lagerfeld in the future may also become the bag of PVH.

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