Latest news with #PVH
Yahoo
a day ago
- Business
- Yahoo
G-III Brings War of Words to PVH in Licensing Lawsuit
Updated 7:17 p.m. ET July 21 The marriage of the PVH Corp.'s brand power and G-III Apparel Group's production prowess has been crumbling since 2022, when PVH moved to take back its Tommy Hilfiger and Calvin Klein licenses over five years. More from WWD 'Clueless' Costume Designer Mona May Reflects on 30 Years of the Movie's Fashion and That Yellow Plaid: 'We All Had Goosebumps in the Fitting Room' PVH CEO Stefan Larsson Buys $1M in Stock, Signaling Confidence in Fashion Company's Strategy 'F1' Star Damson Idris Is Ready for Takeoff Now the breakup has become not just litigious, but bitter. G-III hit PVH with a $250 million breach of contract lawsuit last month after it was denied three-year extensions on its women's suit licenses for both brands. But because the full complaint was under seal, the legal paperwork only hinted at the scope of the dispute. Now that a redacted version of the lawsuit has been filed with New York State Court, years of frustration were given an opportunity to boil over in public. G-III not only argues that there was no basis to deny the license extensions, but takes aim at PVH chief executive officer Stefan Larsson's plans to remake the company and highlights the attendant impact on the licensed businesses. The suit separately alleges a 'sustained and deliberate campaign of unlawful misconduct.' 'We filed this legal action to protect and uphold our contractual rights, as we believe that PVH is taking steps that do not align with our agreements,' a G-III spokesperson said. 'We have had a successful partnership for more than two decades and see their recent actions as an unreasonable attempt to jeopardize our business.' Regarding the lawsuit, a PVH spokesperson said: 'G-III's claims are baseless. We are responding via the legal process and look forward to addressing these matters in court. Through our continued execution of the PVH+ Plan, we are building our brands for the long term. Our strong, go-forward licensing partnerships play an important role in helping us drive sustainable, brand-accretive growth and unlock the power of our iconic brands.' PVH generated $300 million in earnings before interest and taxes from its overall licensing business last year — and the G-III license takeback impacts 20 percent of PVH's expected licensing revenues for 2025. While the suit hints at the state of the broader relationship between PVH and G-III, it directly focuses in on a narrower slice of the business. It also offers just one side of the story. But it's juicy in a fashion insider kind of way. Generally, the suit bemoans the loss of the partnership that was established with former PVH CEO Manny Chirico and cumulatively produced $16 billion in North American wholesale sales. 'After Mr. Chirico retired following a long and successful run as PVH's CEO, a new management team took the reins at PVH in 2021. Relations between defendants and G-III have worsened ever since, as defendants have made a series of strategic and entirely avoidable blunders,' the suit claimed. 'In April 2022, PVH launched a new strategy for the Calvin Klein and Tommy Hilfiger brands, called the PVH+ Plan. When introducing the plan to investors, PVH stated that 'our licensed partners play a vital role in allowing us to bring the full lifestyle of Calvin Klein to our consumers…we are working closely with our licensing partners to bring them along on our journey.'' Turns out, the journey wasn't as long for G-III as it expected and PVH said later that year that it would be repatriating its G-III licenses over five years. Behind the scenes, even the communication strategy to reveal the change caused friction. According to the suit, the PVH news release on the license amendments was different than the drafts that were shared with G-III and touted the company's plan to 'transition…core product categories back to PVH.' The release, along with an interview Larsson gave to WWD and subsequent trade articles, 'shocked the market — in particular department stores and other retailers that had counted on G-III as a long-term partner in regard to Calvin Klein and Tommy Hilfiger products,' the suit alleged. Despite the obvious tension at the start, both companies appeared to be going their own way. Morris Goldfarb, who's been CEO of G-III for more than 50 years, put all of his long experience in to fill the hole that would be left when PVH ultimately walked away with about half of his business. G-III relaunched its Donna Karan brand, looked to rev up the Karl Lagerfeld subsidiary, signed a 25-year license for Halston, inked a deal with Champion and more. Meanwhile, Larsson, who before PVH worked at H&M, Old Navy and Ralph Lauren Corp., sharpened his strategic focus on Tommy Hilfiger and Calvin Klein. His PVH+ Plan looked to pump up the brands with high profile media moments, like Calvin Klein's campaign with Bad Bunny featuring the brand's new Icon Cotton Stretch underwear with an 'infinity waistband' that has no stitching. The idea is to get people talking by putting a white-hot spotlight on those hero products and then presenting a very focused brand, an effort that was meant to be helped along by taking direct control over the U.S. wholesale business G-III previously managed. When PVH has lined everything up with its new approach — like with Bad Bunny — the results are good. But at least some analysts are getting antsy and are keen to see those kinds of PVH+ gains hit more of the company's overall business. G-III's suit zeros in on a relatively nuanced bit of contractual back and forth. When the company put in its bid to renew the suit licenses, PVH replied that both businesses had seen a 'negative compound annual growth rate (i.e., a decline)' that would have been even worse if PVH had not allowed G-III to sell more goods through off-price than initially allowed under the contract. But the suit argues that: 'to the extent that sales of these apparel lines have been declining, the declines are a direct — and frankly foreseeable and preventable — consequence of defendants' own ill-considered and poorly executed strategies and actions — issues that, by the way, G-III has consistently sought to bring to PVH's attention, but to no avail — as well as macro trends in the apparel industry, none of which are, needless to say, under G-III's control.' G-III also claimed that both the Calvin Klein and Tommy Hilfiger suit businesses hit their 'bargained-for performance.' 'Defendants are unreasonably seeking to impose a new and extracontractual condition on G-III's right to extend the licenses, over and above the contractually agreed-upon performance requirements,' the suit said. 'The real reason for defendants' unreasonable refusal to approve an extension of the licenses is that, under the stewardship of its new management team, PVH has been on a punitive and meritless campaign against G-III, attempting at every turn to harm G-III's business and reputation and to blame G-III for the failures of defendants' own ill-advised strategies. This latest maneuver is just more of the same.' The suit also contended that, 'in another major and head-scratching blow to G-III and its department store clients, PVH promoted a new strategy for Calvin Klein and Tommy Hilfiger that sought to focus sales of the brands in a more limited number of stores, including by reducing door counts by more than 90 percent — from 450 to only 25 'doors' — at one retailer, closing all 'doors' at another retailer, and asking G-III to reduce the number of Calvin Klein and Tommy Hilfiger skus. Further, PVH did not and does not have a successful track record on women's wholesale, so the retail market was nervous about how PVH would be able to execute in the women's wholesale space.' PVH has been looking to build back its North American wholesale business methodically so that it meshes with its broader, global vision for Calvin Klein and Tommy Hilfiger. 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Fashion United
3 days ago
- Business
- Fashion United
Tommy Hilfiger owner PVH cuts roles among head office
PVH, the parent company of Tommy Hilfiger and Calvin Klein, has cut some of its head office roles, the majority of which reside at its EMEA headquarters in Amsterdam, the Netherlands. According to a statement to Drapers, issued by a spokesperson for the group, its European, Middle Eastern and African (EMEA) business is 'evolving' as the company looks to 'unlock our full potential in the region and drive sustainable, profitable, long-term growth'. The spokesperson continued: 'As a result, some associates have experienced a role change, and some roles have been impacted. We will be providing transitional support to impacted associates.' In its Q1 report for FY25, PVH lowered its profit forecast amid an ongoing challenging economic climate. US customs policies were cited as the primary cause for concern, leading the group to revise its profit target from the initial 12.40 and 12.75 dollars to 10.75 and 11 dollars. During the quarter, the company swung into a pre-tax loss of 349 million dollars, down from a pre-tax income of 187 million dollars in the previous year. Gross profit also fell from 3 percent year-on-year to 1.16 billion dollars. FashionUnited has contacted PVH with a request for more information.
Yahoo
04-07-2025
- Business
- Yahoo
1 Small-Cap Stock Worth Your Attention and 2 to Be Wary Of
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one small-cap stock that could amplify your portfolio's returns and two that may have trouble. Market Cap: $3.48 billion Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger. Why Should You Sell PVH? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Anticipated sales growth of 1.8% for the next year implies demand will be shaky Low returns on capital reflect management's struggle to allocate funds effectively At $72.44 per share, PVH trades at 5.5x forward P/E. If you're considering PVH for your portfolio, see our FREE research report to learn more. Market Cap: $1.74 billion Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees. Why Are We Hesitant About HMN? 6.1% annual net premiums earned growth over the last four years was slower than its insurance peers Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 1.7% annually over the last five years Underwhelming 6.3% return on equity reflects management's difficulties in finding profitable growth opportunities Horace Mann Educators is trading at $42.60 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than HMN. Market Cap: $1.95 billion Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options. Why Is CASH a Good Business? Impressive 15.1% annual net interest income growth over the last four years indicates it's winning market share this cycle Differentiated product suite is reflected in its Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 6.4% Share repurchases over the last two years enabled its annual earnings per share growth of 24.5% to outpace its revenue gains Pathward Financial's stock price of $82.73 implies a valuation ratio of 2.2x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Business Insider
04-07-2025
- Business
- Business Insider
Calvin Klein (PVH) CEO Buys $1 Million of Parent Company's Stock
The CEO of clothing retailer Calvin Klein has bought a large chunk of parent company PVH Corp. (PVH) stock with the share price at multiyear lows. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Stefan Larsson, who serves as CEO of both Calvin Klein and its corporate parent, PVH, paid $1 million on June 26 to buy 15,645 PVH shares at an average price of $63.92 each. Larsson now owns 269,438 PVH shares, according to a regulatory filing with the U.S. Securities and Exchange Commission (SEC). The stock purchases come with PVH stock trading near a three-year low of $59.28 per share. Larsson, who was previously CEO of Ralph Lauren (RL), last purchased PVH stock on the open market nearly three years ago, in September 2022, when he paid $1 million for 18,540 shares at an average price of $53.94. Lowered Guidance Like many retailers, PVH Corp. has struggled this year as consumers pullback their discretionary spending and amid uncertainty caused by tariffs. In early June, PVH stock fell 18% in a single day after the company lowered its forward guidance, saying 'we are navigating an increasingly uncertain consumer and macroeconomic backdrop.' So far in 2025, PVH stock has lost about a third of its value. In addition to Calvin Klein, the company also owns retail brands such as Tommy Hilfiger, Kenneth Cole, and Michael Kors. In a statement, PVH told Barron's that the latest stock purchase 'is a reflection of Mr. Larsson's belief in PVH, and in the company's ability to continue to deliver long-term value.' PVH stock is down 31% on the year. Is PVH Stock a Buy? average PVH price target of $89.36 implies 22.36% upside from current levels.
Yahoo
03-07-2025
- Business
- Yahoo
PVH Stock Retains Buy Rating Despite Lowered EPS Forecast and Margin Pressure
PVH Corp. (NYSE:PVH) ranks among the 30 stocks expected to beat the market by 20 percentage points this year. Jefferies analysts lowered their price target on PVH Corp. (NYSE:PVH) from $105 to $95 on June 5 while maintaining their Buy rating. The decision was made in response to the company's most recent guidance revision. For the most part, PVH Corp's first-quarter earnings met expectations. Nonetheless, the company lowered its earnings per share forecast for the fiscal year 2025 by roughly 14%. The shift is a result of increased promotions, fewer choices for mitigating tariffs, and further difficulties with the Calvin Klein platform. Sales growth for PVH Corp. (NYSE:PVH) is largely steady and suggests the brand is gaining traction. However, a potential earnings before interest and taxes inflection has been postponed due to margin constraints, and is now expected to occur in the fourth quarter. PVH Corp. (NYSE:PVH) is a global clothing manufacturer that owns and operates a wide range of brands, including Tommy Hilfiger and Calvin Klein. Through a variety of distribution channels, the company designs, promotes, and distributes an extensive selection of clothing, accessories, and shoes. While we acknowledge the potential of PVH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Sign in to access your portfolio
