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August 27, 2007

How PVH can both Max. CK Brand to ensure long term growth and profits.

Analysis of: PVH Q2 Net Soars 35% on Calvin Klein Growth | www.just-style.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Allan Zwerner
Independent Consultant, Allan Zwerner Consulting
Implications: PVH needs to take total control over the CK Brand, not as a licensor, but as an owner of the brand.For PVH to grow domestically and max international growth PVH must buy back the CK Brand.CK Brands future lies in developing own retail stores and to build a profitable model the stores must have both Sportswear as well as Denim.

Analysis: For PVH to build a strong direct retail business, the Merchandising team needs total access to the total product assortment be it Denim, Sportswear and or Dress Furnishings in mens and womens. To simply say that PVH can just buy goods from key volume licensees is a distant second to being able to design and flow what the merchandising team needs, as well as, to react to trends as they emerge.Until there is one mindset for the CK Brand , the retail concept will not be as profitable.At frist one may argue that Guess useslicenseeing product and is successful, this is true however the key elemant total sportswear and denim male and female is under one mindset.Therefore if PVH is going to continue to have long term growth in sales and profits one"mindset" is a must.


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