June 24, 2021
This is one of the first major decisions made by Stefan Larsson as CEO of Tommy Hilfiger’s owner PVHCorp. Calvin Klein brand. Swedish executives who took over the iconic Emmanuel Chirico in their current role have already let go of some of American fashion giants, but now the company says goodbye to the historic segment of its business. I am.The company has signed a New York-based contract Genuine brand Group (ABG) Heritage brand $ 220 million business.
“This was a difficult decision, recognizing that the Heritage Brands business provided the resources to lay the foundation and give us the opportunity to incorporate PVH into one of the world’s largest fashion companies today,” Larsson said. Is stated in the release. “For the past few years, we have been actively optimizing our Heritage Brands business and focusing on allocating resources to profitable businesses to maximize shareholder value. ABG is for future success. We believe we are in a good position to develop and invest in these brands. “
If the separation seems symbolic, it’s because these heritage brands make up the roots of the group. Founded in 1881 in Pennsylvania as a clothing company specializing in work shirts, Phillips-Van Heusen has evolved into a leading supplier of shirts for business people in the 20th century. Therefore, PVH is a historic player in the men’s formal wear sector, Izod, Arrow And Van Hoisen brand. In 2017, the group added a label bearing the name of the late American designer Geoffrey Beene to its heritage portfolio.
This segment, the smallest of PVH’s three business pillars, generated $ 1.8 billion in revenue in 2020, despite being primarily tied to the North American market. After excluding these brands from their activities, PVH reviewed its 2021 goals. Whereas previous guidance predicted an increase of 24% to 26%, annual revenue is expected to increase in the range of 22% to 24% compared to 2020. The Group expects net profit before tax to increase by $ 100 million.
ABG concludes high-end menswear products
“It’s exciting to bring a renowned heritage brand into the ABG portfolio,” said Jamie Salter, ABG’s founder, chairman and CEO, in a release. “We will leverage our global partner network and brand development expertise to continue the excellent work PVH has done to create a sustainable brand business.”
In line with the transaction details outlined by both companies, PVH will continue to own and operate the underwear and underwear business led by: Warners We will also continue to operate the shirt and neckwear business.Licenses for the sportswear business of Izod, Van Hoisen and Arrow Centric brand,in particular Hudson With Tommy Hilfiger as well as jeans and Joe’s jeans Under armorTo the United Legwear & Apparel Company, which includes, and its partners champion And SKECHERS.
ABG is a marketing specialist who develops relevant brand image strategies and finds product manufacturing and distribution partners.Over the past few years, the company has built an impressive portfolio of brands, including those like Volcom, Forever 21, Nautica,Prince, spider And Tretorn, Herve Leger, Jones New York, Adrian Vittadini.
However, the group’s greatest success was the purchase of Barneys in the department store. With the latest acquisition, which is expected to close in the third quarter of this year, the company will integrate its high-end formal menswear business in addition to its newly purchased heritage brand. Brooks Brothers, Heart Schaffner and Hicky Freeman.
All these assets seem to constitute a solid debate for pursuing another epic project. And in fact, Bloomberg recently reported that ABG is preparing an IPO. In 2019, after investment firm Blackrock acquired a $ 875 million stake in the group, the company was worth about $ 4 billion. ABG’s management is aiming for an IPO of over $ 10 billion, according to Bloomberg sources.
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Authentic Brands Acquires Izod, Arrow and Van Heusen from PVH
Source link Authentic Brands Acquires Izod, Arrow and Van Heusen from PVH