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By
Reuters API
Published
Mar 28, 2019
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PVH confirms talks with G-III on Calvin Klein jeans license

By
Reuters API
Published
Mar 28, 2019

Apparel maker PVH Corp confirmed on Thursday it was in talks with its North America apparel partner G-III Apparel Group LTD to licence out the brand's women's jeans unit.


Calvin Klein



G-III also operates Tommy Hilfiger women's business, which helped boost PVH's strong financial results in the fourth quarter, lifting its shares nearly 18 percent in morning trading.

The New York-based company said the decision to licence out its women's jeans unit and exit its high-end collections label would lower its fiscal 2019 revenue by $100 million.

However, the restructuring of Calvin Klein and the lack of a need for big promotions in its jeans business were likely to improve profit margins in the second half of 2019, the company said.

PRESSURE IN CHINA

Chirico said the trade tensions has impacted the company's retail business in China and the United States.

"Business is softer than we saw the first half of 2018... We're looking for that trend to continue throughout the first half of 2019," Chirico said referring to China.

Still, PVH forecast full-year adjusted profit between $10.30 and $10.40 per share, the midpoint of which was above analysts' expectation of $10.31.

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