After breaking up with Raf Simons, the PVH group is eager to erase any traces of the designer at Calvin Klein and is in the process of "cleaning" the brand.
Calvin Klein CEO Steven Shiffman unannounced his "Go Forward" strategy yesterday, and the restructuring process is expected to take 12 months and cost about $120 million, according to the fashion business update.In addition to closing the Raf Simons' converted Madison avenue flagship store in New York, the cost includes labor compensation for 100 layoffs, inventory liquidation, contract termination costs and rent and miscellaneous expenses.In addition, Calvin Klein's high-end series Calvin Klein 205W39NYC will also be renamed, and the design style will be comprehensively adjusted.
To better improve its profitability, PVH decided to merge the Calvin Klein men's sportswear and Calvin Klein jeans businesses, combine retail and e-commerce into one unit, and set up a CMO unit called the consumer marketing organization.
'more than ever, there is a need to move fashion and culture forward and create new products and experiences to meet consumer needs,' Steven Shiffman said in the announcement. 'this strategic move will enable brands to move in a more modern, dynamic and efficient direction.'He further emphasized that the commercialization of Calvin Klein will create tremendous growth opportunities for the group during this critical period, with annual revenue expected to enter the $12 billion club in the next few years.
Some industry insiders pointed out that Calvin Klein kept fluctuating this year with the departure of Raf Simons and the adjustment of brand strategy.Less than two weeks after Raf Simons' departure, Calvin Klein appointed Steven Waldberg, a former bulgari executive, as executive vice President of consumer engagement, a new position for Calvin Klein that will focus on brand marketing, public relations, communications and corporate social responsibility.