REPORT Reverdy Johnson,
[email protected] PVH’s Calvin Klein Turnaround Will Take Even Longer Than Anticipated Companies: BME:ITX, GES, HKG:0330, ICON, JOEZ, JWN, KORS, LVMUY, M, PVH, RL, STO:HM-B, TYO:9983, VFC March 5, 2015 Research Question: Can PVH increase same-store-sales for its Calvin Klein and Tommy Hilfiger brands in the United States and Europe in 2015? Silo Summaries Summary of Findings 1) European Department Store Executives . PVH Corp.’s (PVH) revitalization of Calvin Klein already was These five sources believe PVH managing CK is a expected to be a slow process and now is proving to be even positive for the brand and will result in eventual lengthier than anticipated. Sources who contributed to Blueshift success, but also said the turnaround will take longer than originally expected. The spring CK line appears to Research’s May and/or September 2014 reports now are less have improved incrementally, but one source said initial optimistic and said the timeframe to success has been extended. feedback from a small sample in the stores is negative. Sources are not excited about Calvin Klein’s sales prospects in Two sources said fall is a further improvement on spring in terms of quality and branding, but the small gains 2015 based on a litany of challenges in revitalizing the brand, but underscore the slow turnaround. TH saw a boost in they also noted potential incremental gains on easy comparables sales in Jan. and Feb. following disappointing results in from a poor performance in 2014. the warmer fall and early winter.