NEW YORK--(BUSINESS WIRE)--Apr. 13, 2016--
PVH Corp. [NYSE: PVH] announced today it has completed its acquisition
of the 55% interest in TH Asia Ltd., its joint venture for Tommy
Hilfiger in China, that it did not already own. The acquisition is
expected to add approximately $100 million of revenue and be slightly
accretive to 2016 earnings per share on a non-GAAP basis.
Emanuel Chirico, Chairman and Chief Executive Officer, PVH Corp.,
commented: “This transaction has been envisioned since PVH and the funds
advised by Apax Partners established the Tommy Hilfiger China joint
venture in connection with the Tommy Hilfiger acquisition in 2010. With
the closing of this transaction, our Tommy Hilfiger business can now
operate directly its fastest growing market, while leveraging our
well-established infrastructure in Asia, our regional leadership
expertise and strong brand momentum across both our Tommy Hilfiger and
Calvin Klein businesses in the region. We look forward to the continued
growth of the Tommy Hilfiger business in China.”
With a heritage going back over 130 years, PVH Corp. has excelled at
growing brands and businesses with rich American heritages, becoming one
of the largest apparel companies in the world. We have over 30,000
associates operating in over 40 countries with over $8 billion in 2015
revenues. We own the iconic Calvin Klein, Tommy Hilfiger, Van Heusen,
IZOD, ARROW, Speedo*, Warner’s and Olga brands and market a
variety of goods under these and other nationally and internationally
known owned and licensed brands.
*The Speedo brand is licensed for North America and the Caribbean in
perpetuity from Speedo International, Ltd.
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 (the “Company”) earnings, 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, (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 Company may be
considered to be highly leveraged, and uses a significant portion of its
cash flows to service its indebtedness, as a result of which the Company
might not have sufficient funds to operate its businesses in the manner
it intends or has operated in the past; (iii) the levels of sales of the
Company’s apparel, footwear and related products, both to its wholesale
customers and in its retail stores, 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 and its 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, repositionings of brands by the
Company’s licensors and other factors; (iv) the Company’s plans and
results of operations will be affected by the Company’s ability to
manage its growth and inventory; (v) the Company’s operations and
results could be affected by quota restrictions and the imposition of
safeguard controls (which, among other things, could limit the Company’s
ability to produce products in cost-effective countries that have the
labor and technical expertise needed), the availability and cost of raw
materials, the Company’s ability to adjust timely to changes in trade
regulations and the migration and development of manufacturers (which
can affect where the Company’s products can best be produced), changes
in available factory and shipping capacity, wage and shipping cost
escalation, and 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 or its licensees’ or other business
partners’ products are sold, produced or are planned to be sold or
produced; (vi) 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
become ill or limit or cease shopping in order to avoid exposure; (vii)
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 (viii) other risks and uncertainties
indicated from time to time in the Company’s filings with the Securities
and Exchange Commission.
Risks and uncertainties related to the acquisition include, among
others, competitive responses to the acquisition; the inability to
obtain, or delays in obtaining, cost savings and synergies from the
acquisition; unexpected costs, charges or expenses resulting from the
acquisition; litigation relating to the acquisition; the inability to
recognize the expected benefits of the acquisition; the inability to
integrate the acquired business without disruption to the acquired
business or existing operations; and any changes in general economic
and/or industry specific conditions.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160413006154/en/
Source: PVH Corp.
PVH Corp.:
Dana Perlman,
212-381-3502
Treasurer and Senior Vice President, Business
Development & Investor Relations
investorrelations@pvh.com
or
Tommy
Hilfiger:
Abdel El Hamri, 212-548-1728
Senior
Vice President, Marketing & Communications, the Americas and SVP, Global
Communications
Abdel.ElHamri@tommy.com
