Calvin Klein boss talks strategy
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Calvin Klein boss talks strategy

In the fast-moving fashion world, brands have to evolve to stay current. With that in mind, Fashion giant PVH Corp’s iconic Calvin Klein (CK) has announced a number of big changes in recent days that look set to reinvigorate its position in the market. First, and most obviously, is the abrupt departure of the label’s chief creative officer, Raf Simons. The designer had only been at CK for a couple of years, and he had eight months left on his contract. But that’s just the beginning: in a recent announcement, the brand’s CEO, Steve Shiffman, added details.

PVH Corp’s share price has already appreciated by 15% so far this year

pvh g 140119

Source: Yahoo Finance

Shiffman said, at the end of last week: “CALVIN KLEIN has long been driven by its ability to balance art and commerce in a culturally relevant way – one that has often defied the status quo. Our industry is witnessing a historic transformation in consumer behavior which presents a significant growth opportunity as we look to grow the brand to $12 billion in global retail sales over the next few years. Now more than ever, we must double down on meeting consumer demands by creating culturally relevant products and experiences that engage communities by pushing fashion and culture forward.”

Here are some of the headline changes that will be going on in CK’s near future: the brand’s flagship store, situated at 654 Madison Avenue, will be closing this spring. CK will also be relaunching its CALVIN KLEIN 205W39NYC business, albeit with a new name. This ‘new’ business will interact with other CK brands, bring in new products and unique experiences, and “evolve the traditional luxury fashion model by connecting with a diverse range of communities, offering an unexpected mix of influences and moving at an accelerated pace.”

Shiffman added that the brand’s leadership team would be putting digital first, introducing a “consumer marketing organisation” and streamlining its North American business to become a “more effective organisation”. He said: “These strategic initiatives will enable us to run a more modern, dynamic and effective business, as well as allow us to reinvest in the brand.”

Disclosure
Dominion holds PVH Corp in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.