Arvind to Sell PVH's Calvin Klein Brand in India - Analyst Blog
26 March 2014 - 12:30AM
Zacks
Arvind Brands and Retail Limited, a subsidiary of Arvind
Limited, is set to market PVH Corp’s (PVH)
renowned brand Calvin Klein in India. This marketing right came to
Arvind after it recently acquired a 49% stake in the joint venture
that acts as the licensee of the Calvin Klein trademarks in India,
Premium Garments Wholesale Trading Private Limited, from the
previous partners, Murjani Group.
Per the new license agreement with Premium Garments, Arvind Brands
will be responsible for selling Calvin Klein Jeans apparel and
accessories, including belts, bags, and small leather goods, as
well as Calvin Klein Underwear products in India.
The new agreement will auger well for PVH Corp’s vision for the
Calvin Klein brand after it became the sole owner of the brand by
acquiring The Warnaco Group Inc. in Feb 2013. Also, the company is
expected to make the best of Arvind’s marketing expertise in India.
Further, the joint venture will emphasize on exploiting marketing
opportunities for the Calvin Klein Jeans and accessories, and
innerwears in India, while focusing on the expansion and betterment
of these products.
PVH’s association with Arvind dates back 20 years when Arvind
became the license distributor of PVH’s ARROW brand. Over the years
PVH has tried and tested Arvind’s marketing skills through its
joint venture to market its Tommy Hilfiger, ARROW and IZOD brands
in India. Through this latest collaboration, both the company’s are
aiming to position Calvin Klein as the largest lifestyle brand in
the Indian market in the next five years.
PVH Corp is one of the leading global apparel companies and owner
of the world’s most popular brands, namely Calvin Klein and Tommy
Hilfiger. Apart from owning and marketing these lifestyle brands,
the company has some of the largest shirt and neckwear brands to
its credit including Van Heusen, IZOD, ARROW, Warner's and
Olga.
Additionally, the company markets a variety of goods under its
license brands which include 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.
Despite possessing such a solid portfolio of brands, PVH Corp.
remains focused on brand building, asset management, global
expansion and effective implementation of business strategies to
drive long-term growth. We believe that the company is moving in
the right direction, which will help it to exploit opportunities in
the lifestyle apparel market. However, lingering macroeconomic
factors could dampen its growth in the near term.
Currently, PVH Corp. carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the apparel space include
Hanesbrands Inc. (HBI), Joe's Jeans
Inc. (JOEZ) and Michael Kors Holdings
Limited (KORS), all of which carry a Zacks Rank #1 (Strong
Buy).
HANESBRANDS INC (HBI): Free Stock Analysis Report
JOES JEANS INC (JOEZ): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis Report
PVH CORP (PVH): Free Stock Analysis Report
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