Apparel giant PVH Corp has inked a licensing deal with Peerless Clothing International for its Tommy Hilfiger tailored menswear.

The move is part of a bid by PVH to consolidate its North America men's tailored businesses under one partner, and comes into affect on 1 January 2018. The Hilfiger tailored business is currently produced by Marcraft Clothes Inc.

"We believe it best serves the needs of our company and brands to have all of the men's tailored businesses under the direction of one partner and that Peerless is well-positioned to build upon the success to date of the Tommy Hilfiger men's tailored clothing business," says PVH chairman and CEO Emanuel Chirico.

The company has what Chirico calls a "long-standing" relationship with Peerless, which has been the licensee for its Calvin Klein, Van Heusen, and Izod brands for several years.

UBS Investment Bank analyst Michael Binetti says he expects to see PVH roll up more of its licenses in 2017, with the company likely to prioritise those in Asia.

"While our earnings forecasts don't include a bigger transaction at this time, we believe PVH could start evaluating potential to add a third big brand, and we expect the company to start thinking more opportunistically with any larger potential M&A opportunities that may arise," he adds.

Last month, PVH revealed it has expanded its commitment to sustainable development by joining the United Nations Global Compact (UNGC), the world's largest voluntary corporate citizenship initiative, and signing the CEO Water Mandate to safeguard and preserve water resources.

PVH commits to two UN environmental accords