AMSTERDAM, Jun 18, 2010 (BUSINESS WIRE) --The Tommy Hilfiger Group, which is wholly owned by Phillips-Van Heusen Corporation (NYSE: PVH), announced today that it will bring its European handbag and small leather goods business in house, effective for Spring 2011.
Tommy Hilfiger handbags and small leather goods were introduced to the European market in 2004 under a licensing arrangement currently operated by Tichebox Srl. Sales exceeded EUR 16.5 million (US$20.3 million) at wholesale in 2009.
"The integration of this business within the Tommy Hilfiger Group is intended to optimize both product development, as well as sales," said Fred Gehring, Chief Executive Officer of the Tommy Hilfiger Group. "We see tremendous growth potential for these categories and this step will provide us with greater control and improved brand alignment."
The transaction is expected to close by June16, 2010. No financial details of the transaction have been disclosed. The division will be managed by Christopher Koerber, SVP of Footwear and Accessories and will report to Daniel Grieder, CEO of Tommy Hilfiger Europe B.V. Simultaneously with the closing, Tommy Hilfiger will enter into a new licensing agreement with Tichebox for the design, production, sales and marketing of luggage under the Tommy Hilfiger brand.
About the Tommy Hilfiger Group
With a premium lifestyle brand portfolio that includes Tommy Hilfiger and Hilfiger Denim, The Tommy Hilfiger Group is one of the world's most recognized designer apparel groups. Its focus is designing and marketing high-quality menswear, womenswear, children's apparel and denim collections. Through select licensees, the Group offers complementary lifestyle products such as accessories, fragrances and home furnishings. Merchandise under the Tommy Hilfiger brands is available to consumers worldwide through an extensive network of Tommy Hilfiger retail stores, leading specialty and department stores and other select retailers and retail channels. For additional information about the Tommy Hilfiger Group, please visit www.tommy.com.
About Phillips-Van Heusen Corporation
Phillips-Van Heusen Corporation, 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 and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Trump, JOE Joseph Abboud, DKNY and Timberland. Visit www.pvh.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release, including, without limitation, statements relating to the future revenue and earnings, plans, strategies, objectives, expectations and intentions of Phillips-Van Heusen Corporation and its subsidiaries, including the companies comprising the Tommy Hilfiger Group, which were recently acquired by Phillips-Van Heusen Corporation (Phillips-Van Heusen Corporation and its subsidiaries are referred to herein collectively as the "Company"), 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 Company may be considered to be highly leveraged, and will have to use a significant portion of its cash flows to service such 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, including the Company's ability to continue to develop and grow the Calvin Klein businesses in terms of revenue and profitability, and its ability to realize benefits from the Tommy Hilfiger Group; (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), 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 limit or cease shopping in order to avoid exposure or become ill; (vii) acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquired entity, such as the Tommy Hilfiger Group, into the Company with no substantial adverse affect on the acquired entity's or the Company's existing operations, employee relationships, vendor relationships, customer relationships or financial performance; (viii) 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 (ix) 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, including, without limitation, any estimate regarding revenue or earnings, whether as a result of the receipt of new information, future events or otherwise.
SOURCE: Phillips-Van Heusen Corporation
Media:
Tommy Hilfiger Europe B.V.
Abdel El Hamri, +31 (0)20 589 5701
Director of European Communications
Abdel.Elhamri@tommy.com
or
Avery Baker, +31 (0)20 589 9889
EVP Global Marketing and Communications
Avery.Baker@tommy.com
or
Investors:
Phillips-Van Heusen
Michael Shaffer, +1 212 381 3523
Executive Vice President and Chief Financial Officer
michaelshaffer@pvh.com