Warnaco Buy CK Product Portfolio

Warnaco, the largest underwear manufacturer in the United States, has reached a new authorization agreement with Phillips-Van Heusen to expand the product mix of Calvin Klein brand.

Under the agreement, Warnaco will buy a Calvin Klein portfolio of US $38 million 500 thousand, including the right to operate Calvin Klein denim retail stores in Eurasia and Latin America, as well as the franchise of CK Calvin Klein jewelry store in Europe and Latin America.

Warnaco also asked for the right to operate Calvin Klein denim apparel online in Eurasia and America.

At the same time, the company also signed a two level licensing and distribution agreement with Calvin Klein and Windsong Golf limited, selling Calvin Klein golf apparel in Asia.

Warcaco bought Calvin Klein jeans empowerment in Europe and Asia for $286 million in 2005, as well as part of the brand's sportswear in Europe.

Phillips-Van Heusen owns the copyright of the brand and operates it all over the world.

Warnaco wants to expand the brand, especially in the current global market of jewelry market.

From an economic point of view, this part of the business can increase annual revenue by 150 million dollars in five years.

As part of the agreement, Phillips-Van Heusen will regain control of the Confezioni Moda Italian company, which will return the authorization of the Calvin Klein clothing series.

Previously, Warnaco plans to take over the management of this part of business from January 2008 until 2013.

The return of this part of the business has been discussed for several months, and Calvin Klein wants to run some businesses by itself.

For high-end clothing series, profitability is not necessarily the most important goal.

For Calvin Klein, although the economic benefits can not be ignored, the company's main purpose of its high-end clothing business is positioned to enhance the brand image.