NEW YORK & SYDNEY--(BUSINESS WIRE)--Oct. 3, 2013--
PVH Corp. [NYSE:PVH], the owner of the Calvin Klein trademarks
worldwide, and Gazal Corporation Limited [ASX:GZL], listed on the
Australian Securities Exchange, announced today that they have formed a
joint venture, PVH Brands Australia Pty. Limited, which will license
from Calvin Klein, Inc., a wholly owned subsidiary of PVH, the rights to
operate, manage and distribute Calvin Klein brand products in
Australia, New Zealand and other island nations in the South Pacific.
The license term is 20 years.
Currently, the principal distribution in the region consists of a
wholesale and retail Calvin Klein Underwear distribution business
operated by Gazal, with product supplied through a wholly owned
subsidiary of PVH, and a wholesale and retail Calvin Klein Jeans
business operated by two other PVH subsidiaries. The joint venture will
combine these businesses and establish a unified approach for enhancing
and expanding the distribution of the Calvin Klein brand in the
region. The combination of Calvin Klein, Inc.’s brand vision and Gazal’s
expertise in the region is intended to maximize the market opportunities
across all products and distribution channels.
As part of the joint venture:
-
Gazal will sell to the joint venture its subsidiary currently
operating its Calvin Klein Underwear distribution business in
Australia and New Zealand.
-
PVH will sell to the joint venture its subsidiaries currently
operating the Calvin Klein Jeans businesses in Australia and New
Zealand.
The joint venture is currently scheduled to begin its wholesale and
retail operations on February 3, 2014. The joint venture will focus
initially on the integration, expansion and enhancement of the existing
underwear and jeanswear businesses and will subsequently extend into
additional product categories.
“This strategic move allows us to directly support the development and
expansion of our Calvin Klein brand in Australia and New
Zealand,” said Tom Murry, CEO of Calvin Klein. “With the tremendous
expertise of Gazal, which has successfully managed our underwear
business for many years, this partnership should ensure the long-term
potential of the brand in the region.”
Gazal markets and manages national and international apparel brands in
Australia and New Zealand, including a portfolio of local Australian and
iconic global brands, including Van Heusen, the menswear brand
that Gazal has operated for over 30 years under license from PVH.
Gazal’s extensive multi-channel distribution network includes wholesale,
company-operated retail and e-commerce channels. Gazal’s performance in
the market confirms its position as a key player in the Australian
wholesale and retail apparel sector. Drawing on this experience, Gazal
will oversee the day-to-day operations of the joint venture.
“Calvin Klein is a global megabrand and we are excited to
commence this joint venture. We have a long and successful relationship
with PVH and are delighted to be expanding our relationship with such a
powerhouse apparel brand. We look forward to growing the Calvin Klein
business in the region,” said Michael Gazal, Executive Chairman of Gazal.
Gazal will realize a one-time profit of A$6.5 million on the sale of its
Calvin Klein Underwear distribution business to the joint venture. Gazal
expects the joint venture to be earnings-neutral in its current 2014
fiscal year, with the expectation for positive earnings contribution in
its 2015 fiscal year.
About PVH Corp.
PVH Corp., one of the world’s largest apparel companies, owns and
markets the iconic Calvin Klein and Tommy Hilfiger brands
worldwide. It is the world’s largest shirt and neckwear company and
markets a variety of goods under its own brands, Van Heusen, Calvin
Klein, Tommy Hilfiger, IZOD, ARROW, Bass,
G.H. Bass & Co., Warner’s and Olga, and its
licensed brands, including Speedo, Geoffrey Beene, Kenneth
Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors,
Sean John, Chaps, Donald J. Trump Signature Collection,
JOE Joseph Abboud, DKNY, Ike Behar and John
Varvatos.
About Calvin Klein, Inc.
Calvin Klein, Inc. is one of the leading fashion design and marketing
studios in the world. It designs and markets women’s and men’s designer
collection apparel and a range of other products that are manufactured
and marketed through an extensive network of licensing agreements and
other arrangements worldwide. Product lines under the various Calvin
Klein brands include women’s dresses and suits, men's dress
furnishings and tailored clothing, men’s and women's sportswear and
bridge and collection apparel, golf apparel, jeanswear, underwear,
fragrances, eyewear, women’s performance apparel, hosiery, socks,
footwear, swimwear, jewelry, watches, outerwear, handbags, small leather
goods, and home furnishings (including furniture). For more information,
please visit calvinklein.com.
About Gazal Corporation Limited
Based in Sydney and listed on the Australian Securities Exchange, Gazal
Corporation Limited is a leading apparel supplier and retailer in
Australasia, marketing both company-owned and licensed brand names such
as Calvin Klein, Van Heusen, Bisley, Nancy Ganz,
Spanx, HoldmeTight, Bracks, Midford, The
Mens Shop and Trade Secret.
PVH CORP. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Forward-looking statements made in this press
release, including, without limitation, statements relating to PVH
Corp.’s future plans, strategies, objectives, expectations and
intentions, are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with
accuracy, and some of which might not be anticipated, including, without
limitation, the following: (i) the Company's plans, strategies,
objectives, expectations and intentions are subject to change at any
time at the discretion of the Company; (ii) the levels of sales of the
Company's licensees at wholesale and retail, and the extent of discounts
and promotional pricing in which the Company's licensees and other
business partners are required to engage, all of which can be affected
by weather conditions, changes in the economy, fuel prices, reductions
in travel, fashion trends, consolidations, repositionings and
bankruptcies in the retail industries, and other factors; (iii) civil
conflict, war or terrorist acts, the threat of any of the foregoing, or
political and labor instability in any of the countries where the
Company's licensees' or other business partners' products are sold,
produced or are planned to be sold or produced; (iv) disease epidemics
and health related concerns, which could result in closed factories,
reduced workforces, scarcity of raw materials and scrutiny or embargoing
of goods produced in infected areas, as well as reduced consumer traffic
and purchasing, as consumers limit or cease shopping in order to avoid
exposure or become ill; (v) the failure of the Company's licensees to
market successfully licensed products or to preserve the value of the
Company's brands, or their misuse of the Company's brands and (vi) other
risks and uncertainties indicated from time to time in the Company's
filings with the Securities and Exchange Commission.
The Company does not undertake any obligation to update publicly any
forward-looking statement, whether as a result of the receipt of new
information, future events or otherwise.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20131003006522/en/
Source: PVH Corp. and Gazal Corporation Limited
PVH CORP.
Media
Calvin Klein, Inc.
Malcolm
Carfrae, +1-212-292-9799
Executive Vice President, Chief
Communications Officer
MalcolmCarfrae@ck.com
or
Investors
PVH
Corp.
Dana Perlman, +1-212-381-3502
Treasurer, Senior Vice
President – Business Development and Investor Relations
investorrelations@pvh.com
or
GAZAL
CORPORATION LIMITED
Media & Investors
Peter
Wood, +61 2 9316-2801
Company Secretary
