Blog: PVH-Warnaco fit has good prospects
Leonie Barrie | 5 November 2012
In a move that is set to make PVH one of the world's largest and most profitable apparel companies, the clothing maker last week announced plans to buy The Warnaco Group in a $2.9bn deal.
As well as bringing control of the Calvin Klein underwear, jeans and sportswear lines under one roof, the acquisition also sets the stage for major expansion - not only across product categories, but also new geographies and distribution channels. In particular, top line growth is seen on the back of Warnaco's strong presence in Asia and Latin America.
US retailers have yet to weigh up the full impact of Hurricane Sandy, which hit the US East coast early last week. Despite estimates suggesting they were forced to close up to 10% of their stores as the Superstorm swept through, growth in US sales held up in October according to monthly figures. But analysts continue to weigh up the storm's longer-term impact on apparel and footwear sales.
Swedish fashion retailer H&M has hit back at accusations that it fails to pay adequate wages to workers in Cambodian factories - and says the situation would be a lot worse if it didn't source from the country. While Fast fashion retailer Forever 21 is being investigated by the US Department of Labor (DoL) for "significant" labour law violations among its suppliers in Southern California.
And environmental campaign group Greenpeace is stepping up efforts to clean up the clothing supply chain by calling on outdoor apparel firms to ban PFCs from production after tests found the chemicals in a number of leading brands. Separately, the latest report from brands who have committed to a toxic-free future by 2020 says more participation is crucial if their efforts are to have a major impact.
Meanwhile, the European Union has released details of planned changes to its Generalized System of Preferences (GSP) system for developing countries, which are due to come into effect from the beginning of 2014. The update will reduce the number of countries that enjoy preferential access to EU markets from 176 to 89.
However, two years after it was removed from the GSP+ scheme that allowed duty-free exports to the EU, Sri Lanka's apparel industry says it has been hurt by the loss.
Speculation emerged last week that a group of investors is planning to bid for Adidas Group's Reebok unit, and that a likely sale would enable the German sportswear giant to realign its strategy as a ...
Competition for pole position in the women's sportswear market is about to heat up after Nike this week revealed it has set its sights on growing its women's business by 40% over the next two years....
Experts on China's textile and apparel industry say that international brands must take increasing care to ensure their sourcing is environmentally and socially responsible, ahead of an anticipated ti...
It seems former Men's Wearhouse CEO George Zimmer may be about to show his trump card following his fall-out with the apparel retailer, through the launch of a new company....
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