Calvin Klein Began To Make A Big Adjustment After Leaving Raf Simons.

In January 10th, Calvin Klein CEO Steve Shiffman announced the pformation plan of the brand after the departure of former chief creative officer Raf Simons.

Although the departure from Simons has only been in the past month, the pformation plan seems to be very complete, covering a wide range, and there are no detailed and specific measures.

First of all, the Calvin Klein 205W39NYC, which has been renamed as Raf Simons, will be renamed again.

However, I wonder if it is because Simons's successor selection has not been confirmed, so that the creative trend of the brand is still uncertain, and the brand name is still undecided.

And Simons's flagship flagship store, which is rebuilt in Madison's road in New York, will shut down after taking office.

Simons has worked with artist Sterling Ruby to pform the store from a minimalist style to an artistic style.

What makes people remember is that there is a bright yellow wall in the shop, and there are many sculptural devices with artistic sense.

Although it is not clear how this store will be handled afterwards, considering that in 2018, Calvin Klein has passed the long-term lease of the 3 storey shop through the real estate agency. The brand will probably enable the famous brand to open flagship store here, and it will also allow other sub brands in the Calvin Klein series to enter here.

These initiatives can be seen as Calvin Klein is trying to erase the shadow of Raf Simons in the brand.

This is consistent with previous Calvin Klein parent company PVH Group executives' statements.

"From a product point of view, we are moving too far or too fast, whether it is fashion or price.

We are working hard to make up for this mistake. "

Emanuel Chirico, chairman and chief executive of PVH, issued an unusual negative statement in the third quarter of the group's performance to comment on the performance of Calvin Klein.

The trigger for these remarks is the decline of Calvin Klein.

According to the third quarter report released by PVH in the fiscal year, sales growth of Calvin Klein dropped to 2%, and pre tax profit fell by more than 17%.

In the third quarter, Calvin Klein's sharp fall in pre tax profits was blamed on the Simons led creative and marketing plan, which did not generate enough sales growth, and increased spending by about $10 million.

Therefore, in this adjustment, in addition to the development direction of the main brand "rectification", Calvin Klein also announced that it will increase its investment in digitalization and all channels, so as to better keep pace with the times and industries.

Specifically, Calvin Klein has recently established the position of executive vice president of consumer integration, and has taken the lead in the Steven Klein, the global communications director of jewelry brand.

Meanwhile, in its most important North American market, Calvin Klein also announced that it would streamline its organizational structure and improve its operational efficiency.

The movement of Calvin Klein and the cowboy product line will be integrated.

The operation of the Calvin Klein brand in the North American online and offline will be opened up.

"The industry we are experiencing is experiencing unprecedented changes, so we will invest $12 billion in the next few years to create growth opportunities."

Shiffman said.

In fact, for Calvin Klein, the timing of change is not so bad.

Unlike many brands who are forced to seek new changes after encountering a crisis, the performance of Calvin Klein can be justified at least from the performance level.

Along with this strategy adjustment information, there is also PVH's expected earnings report for fiscal year 2018.

PVH expects its total revenue to reach at least $9 billion 570 million in fiscal year 2018, exceeding the plan, and its earnings per share is expected to reach $1.75, which is also higher than the previous investment guidance yield range.

However, this part of the figures is not included in the follow-up brand adjustment.

PVH expects Calvin Klein's current brand adjustment plan to cost about $120 million and cause about 100 people to quit.