Phillips-Van Heusen Corp. has big plans for Calvin Klein this year. Discussing fourth-quarter and year-end results in a conference call with analysts Tuesday, Emanuel Chirico, PVH’s chairman and chief executive officer, unveiled several product launches and initiatives planned for 2009 to further develop the Calvin Klein subsidiary. Among the steps are a new women’s and men’s ad campaign for Calvin Klein Underwear; a new ck Calvin Klein fragrance, and a new sublabel of Calvin Klein Jeans. PVH, hit by a number of restructuring and downsizing charges, reported Monday that it lost $37.9 million, or 74 cents a diluted share, in the quarter ended Feb. 1, compared with net income of $30.3 million, or 55 cents, in the year-ago period. Revenue dipped 1.2 percent to $577.8 million in the quarter. Excluding charges, earnings per share was 30 cents a share, 2 cents better than analysts expected, helping to push PVH shares up $2.55, or 13.5 percent, to $21.48 on Tuesday. Calvin Klein Jeans, licensed to Warnaco Group Inc., this fall will debut a new sublabel called Body, for men and women. “We are not only launching it on a dual-gender basis, but we are also launching it across all geographies — Europe, Asia and the U.S. — at the same time,” said Chirico. The new campaign for Calvin Klein underwear, also licensed to Warnaco, will debut this fall as well. The dual-gender campaign will feature new celebrity spokespeople, said Chirico, adding further details are pending. Calvin Klein fragrance royalties were down about 25 percent in the quarter. The business was hurt by weak sales at department stores and duty free airport shops, due to the recession. Fragrance licensee Coty will launch a new ck Calvin Klein initiative in September, targeting young men, also supported by a big media push. Even with these launches, total Calvin Klein advertising expenditures are expected to be down $10 million this year, but still over the $150 million mark. Calvin Klein retail stores suffered a 14 percent decline in comparable-store sales in the quarter, after 27 consecutive months of comps improvements, due to pressure on designer brands in the weak economy. On the upside, Calvin Klein outerwear and dresses, licensed to G-III Apparel Group Ltd., posted strong sales, with royalties ahead of plan by 10 percent for the quarter. The footwear business, licensed to Jimlar Corp., posted sales growth of 30 percent in the quarter. In the second half of 2008, CKI launched e-commerce at calvinklein.com, and the company believes the channel can grow into a $40 million to $50 million business within four to five years. It is currently generating about 10 percent of that figure, said Chirico. PVH ended the year with $328.2 million in cash and no bank debt. A $325 million line of credit matures in 2012, and the company expects to generate free cash flow of $70 million this year. Chirico said the company continues to seek synergistic acquisitions but hasn’t yet found suitable deals.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim