Blog: Calvin Klein steals the show
Leonie Barrie | 29 March 2010
With Phillips-Van Heusen's (PVH) fourth quarter and full-year results coming so soon after its plans to buy Tommy Hilfiger were revealed, the US$3bn deal was expected to steal the show. In the event though, stalwart brand Calvin Klein took centre stage, thanks to a stellar and unexpected performance in the fourth quarter when royalty revenues surged up 22%.
The sales hike helped PVH to a fourth quarter profit of US$27m, and provides a reassuring picture for the company in the upcoming year. Initial feedback from the Tommy deal is good too, with growth in orders seen for autumn 2010 and key customer Macy's hinting that it could double the size of its Hilfiger business over the next three years.
British fashion retailer Next has also toasted an "exceptional" year after profit jumped 18% to GBP505m (US$754m). The UK retailer pledged to expand its sportswear offer and make better use of the internet in the coming 12 months, after revenues rose 4.1% to GBP3.4bn.
Next is also planning further ahead too, after being appointed as official clothing and homeware supplier to athletes and officials at the London 2012 Olympic Games.
Another firm eyeing a bigger slice of the market in 2010 is consumer goods sourcing giant Li & Fung, which last week posted a 39% hike in full-year profit to HK$3.4bn. While turnover slipped 6% to HK$104.5bn (US$13.4bn), the impact was offset by tight cost controls and increased contributions from the company's higher-margin onshore businesses.
German fashion house Hugo Boss is going ahead with plans to shut its last US production plant, despite a Hollywood-style boycott of its suits led by actor Danny Glover. The closure, which is scheduled for 28 April, is described by Hugo Boss as "an unfortunate but necessary business decision."
A labour rights group is calling for better employment policies and social protection to help garment workers in Cambodia recover from the impact of the global economic downturn. The pleas come after new data from a survey led by the International Labour Organization (ILO) found many workers have had their salaries cut in the past year and now struggle to cover basic living costs.
Meanwhile, apparel makers in Macedonia (more accurately called 'the former Yugoslav Republic of Macedonia' due to an ongoing dispute with Greece over its name) say they are beginning to see the first signs of an upturn in demand as European retailers and importers increase orders again as they emerge from recession. The industry is setting itself up as a fast fashion supplier to European retailers and brands - especially those in the UK - with its small volumes and flexible production.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Using worker surveys to drive supply chain change
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- No US rush to Myanmar despite end to sanctions
- Where does VF supply chain sit in growth strategy?
- Amazon wins on-demand apparel manufacturing patent
- Driving ban intensifies Myanmar logistics hurdles
- Inditex, Adidas and Patagonia top ethical report
- Trump bolsters "buy American" with executive order
- Calls for supply chain transparency standard
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts