NEW YORK — Calvin Klein outlets will soon be replacing some Geoffrey Beene ones.
Phillips-Van Heusen Corp. said Wednesday that it would end its license to operate Geoffrey Beene outlets and close its Geoffrey Beene outlet retail division by the end of fiscal 2008. As a result, it will shutter 75 of the existing 100 stores and convert the remaining 25 into Calvin Klein outlets.
Meanwhile, PVH renewed its Geoffrey Beene licenses for dress shirts and men's sportswear until Dec. 31, 2013.
"The closing of our Geoffrey Beene retail division in no way bears on our commitment to our Geoffrey Beene wholesale dress shirt and sportswear businesses," Emanuel Chirico, PVH's chairman and chief executive officer, said, adding the brand "is an important component of our stable of brands."
PVH is working to place Geoffrey Beene associates elsewhere within its divisions.
The company anticipates after-tax charges of approximately $15 million, or 29 cents a share, citing asset impairments, severance, inventory markdowns and lease exit costs.
Calvin Klein Inc. has begun growing its retail network, opening several Calvin Klein-branded megastores featuring apparel and accessories under the Calvin Klein white label. Recently, company executives have also hinted at a renewed push to open freestanding Calvin Klein Collection stores.
"By converting a portion of the Geoffrey Beene store portfolio to Calvin Klein outlet retail stores, we will accelerate the growth of our most productive and profitable outlet retail division, and more quickly reach our desired number of Calvin Klein outlet retail stores," Chirico said.
The conversion of 25 units into Calvin Klein outlets, he added, "should result in significantly higher sales per square foot and higher operating margins in these stores, which should have a positive impact on fiscal 2009 operating results."