NEW YORK--(BUSINESS WIRE)--Apr. 8, 2014--
PVH Corp. (NYSE:PVH) announced today that it has become a minority
shareholder in the parent company of the Karl Lagerfeld brand.
Terms of the deal were not disclosed.
This investment will enable PVH to benefit from the growth of this
unique brand and includes the right of first offer to license the brand
for North America, which has primarily been focused in Europe and Asia.
Karl Lagerfeld was part of the Tommy Hilfiger Group until PVH acquired
the Group in 2010, at which time it was spun off to the Group’s former
shareholders. Other investors in Karl Lagerfeld include Apax Funds, the
Chou Group, Mr. Tommy Hilfiger and Fred Gehring, CEO of Tommy Hilfiger.
Pier Paolo Righi, President of Karl Lagerfeld B.V., said: “We are
excited to have PVH as a shareholder. We have ambitious plans for the
business and have embarked on an aggressive growth strategy, opening a
new store every three weeks over the last six months. We believe PVH’s
strong track record in supporting the growth opportunity of global
designer lifestyle brands will be a big asset.”
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, Calvin Klein, Tommy
Hilfiger, Van Heusen, IZOD, ARROW, 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, Joseph Abboud, DKNY, Ike Behar
and John Varvatos.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: Forward-looking statements and information included in
this press release, including, without limitation, statements relating
to the Company’s future plans, strategies, objectives, expectations and
intentions, and the benefits, results, and effects of its investment in
Kingdom Holding 1 B.V., the parent company of Karl Lagerfeld B.V. (the
“Karl Lagerfeld Business”), 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, or
make further investments in Kingdom Holding 1 B.V. that may be necessary
to maintain its interest as the business is developed; (iii) the Karl
Lagerfeld Business is in the early stages of development, and the
Company has limited rights with respect to influencing its development
as such, there can be no assurance of the success of the Karl Lagerfeld
Business or that the Company will receive a return on its investment;
the Company may even lose its investment in its entirety; and (iv) 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.
Source: PVH Corp.
Dana Perlman, 212-381-3502
and Senior Vice President, Business Development and Investor Relations