PVH Corp. is consolidating its control of Tommy Hilfiger, reacquiring the brand’s license for Central and Southeast Asia from Dickson Concepts.
The license covers the Tommy Hilfiger brand in Hong Kong, Macau, Taiwan, Singapore and Malaysia. The deal also includes certain related leases and retail assets and is expected to close in the second quarter, but full terms of the transaction were not disclosed.
Emanuel Chirico, chairman and chief executive officer of PVH Corp., said, “This transaction demonstrates our commitment to making strategic investments to support the long-term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region.”
PVH has already set the table for a stronger play in the region, having bought back the 55 percent Tommy Hilfiger joint venture in China that it didn’t already own as part of a $172 million deal in April 2016.
Daniel Grieder, ceo of Tommy Hilfiger Global, added that the business is moving toward a “more fully integrated strategy for Greater China.”
“This transaction should allow us to further realize the growth opportunities that exist for the Tommy Hilfiger brand by enabling the introduction of a wider range of product lines, and offering consumers a more immersive and elevated brand experience,” Grieder said. “Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business and invest further in driving the expansion of the brand.”
PVH will report its annual results on Wednesday. Tommy Hilfiger has been a bright spot in the company’s financials lately, particularly as its corporate sibling, Calvin Klein, has changed course and shuttered its collection business for a more democratic approach following the departure of Raf Simons.
The Tommy Hilfiger business drove its revenues up 11 percent to $1.1 billion in the third quarter.