NEW YORK — PVH Corp. has become a minority shareholder in the parent company of the Karl Lagerfeld brand. Terms of the transaction weren’t disclosed.
This story first appeared in the April 9, 2014 issue of WWD. Subscribe Today.
The investment will enable PVH to benefit from the growth of Lagerfeld and includes the right of first offer to license the brand for North America. The brand has been primarily focused on Europe and Asia.
Lagerfeld was part of the Tommy Hilfiger Group until PVH acquired Hilfiger in 2010, at which time it was spun off to the group’s former shareholders. Other investors in Lagerfeld include Apax Funds, the Chou Group, Tommy Hilfiger himself and Fred Gehring, chief executive officer of Tommy Hilfiger.
“We are excited to have PVH as a shareholder,” said Pier Paolo Righi, president of Karl Lagerfeld B.V. “We have ambitious plans for the business and have embarked on an aggressive growth strategy, opening a new store every three weeks over the last six months. We believe PVH’s strong track record in supporting the growth opportunity of global designer lifestyle brands will be a big asset.”
Last month, Lagerfeld opened his largest European store on Regent Street in London. The 2,700-square-foot Karl Lagerfeld London flagship is the 17th store to open since the brand’s rollout began 12 months ago. The same month, the designer launched a new signature fragrance masterbrand. The fragrances will be launched worldwide through September. The fragrance push is a key part of the Karl Lagerfeld brand strategy to become a global fashion and lifestyle business, Righi told WWD last month.
Lagerfeld also revealed plans last month to open a 270-room signature hotel in Macau, which Righi said was an “important milestone in the development of our brand and business globally, and specifically in Greater China,” where Lagerfeld now counts five stores.
Apax recently repositioned the brand and its rock ’n’ roll-infused collections in the growing masstige and contemporary price zones.