Going ahead with its strategy of expanding higher-margin
) entered into a license agreement with Leisure Brands (Pty) Ltd.
to market and distribute
brand products across South Africa. The agreement will be valid
through Dec 2016.
As per the agreement, Leisure Brands has the rights to sell,
promote and distribute
-branded products which include men's headwear, denim pants, men's
belts, shorts in 5-pocket construction, men's socks and umbrellas.
Apart from this, PVH Corp. provides its licensee the authority to
sell, promote, distribute and manufacture
branded products including, sportswear, apparel and
We believe that PVH Corp.'s recently concluded transaction
furthers its plans to concentrate on higher-margin businesses
rather than lower-margin products to drive long-term growth and
enhance shareholder value.
Consistent with this strategy, on Monday this week, the company
entered into a license agreement with TS Commerce Corporation - a
leading men's apparel retailer in South Korea - to expand PVH
brand in Korea.
From the beginning of 2014, we have noticed that the company has
been aggressively engaged in expanding its roots to become one of
the largest global lifestyle apparel retailers. For achieving this,
PVH Corp. is focusing on enhancing its brands across North and
Latin America, Europe and Asia through e-commerce as well as
In the beginning of Jan 2014, PVH Corp. entered into a license
agreement with Axis Golf Pty. Ltd. to market and distribute
brand products across Australia, New Zealand, Fiji and other South
Pacific islands till 2018.
In late March, the company expanded its relationship with
India-based Arvind Brands and Retail Limited, a subsidiary of
Arvind Limited to market PVH Corp.'s renowned brand Calvin Klein in
India and position it as the largest lifestyle brand in the Indian
market over 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
Additionally, the company markets a variety of goods under its
licensed brands which include Speedo, Geoffrey Beene, Kenneth Cole
New York, Kenneth Cole Reaction, Michael Kors, Sean John, Chaps,
Donald J. Trump Signature Collection, Joseph Abboud, DKNY, Ike
Behar and John Varvatos.
Despite possessing 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
Columbia Sportswear Co.
), all of which carry a Zacks Rank #2 (Buy).
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