Blog: Leonie BarriePVH eyeing Warnaco?

Leonie Barrie | 31 August 2006

Is Phillips-Van Heusen Corp lining up as a potential suitor for Warnaco? That’s the buzz doing the rounds at the Magic Marketplace trade show in Las Vegas a Reuters news report said yesterday. Although no-one’s commenting on such speculation – which has been persisting now since June – the rumours are apparently based on calls from shareholder Barington Capital Group LP, which owns a 5.6% stake in Warnaco and last week urged it to consider a possible sale of the whole company. The fund also suggested Warnaco should consider selling off brands and licenses that aren't central to its business, such as the company's underwear and swimwear segments.

Earlier this month Warnaco, which licenses apparel under names including Speedo, Calvin Klein Jeans and Nautica, reported a 46% slide in second-quarter profit. It has recently been hit by a series of mis-steps, including a financial restatement, missed revenue and profitability targets, and extra costs associated with the implementation of a new software system in its swimwear division.

There’s no doubt Warnaco and Phillips-Van Heusen would be a good fit, especially since Warnaco licenses the Calvin Klein brand from Phillips-Van Heusen. But there are also suggestions that a private equity buyer might also be waiting in the wings. Just look at recent examples: Bain Capital was a frontrunner in the bidding for Jones Apparel Group, and Goldner Hawn Johnson & Morrison has taken a majority stake in Allen-Edmonds Shoe Corporation. Obviously time will tell which way it’s going.


BLOG

China still dominates apparel sourcing

The latest full-year data on US apparel import trends for 2017 suggests China will remain the dominant sourcing region for some time to come....

BLOG

Retail's rapid transformation requires "platform thinking"

There’s no doubt the retail industry is undergoing rapid transformation as technology continues to reshape how retailers think about their supply chains and meeting their customers’ needs. But to posi...

BLOG

NAFTA trade talks inch forward

Negotiators are meeting this week for the sixth round of NAFTA trade talks – and as soon as this deal has been repackaged, the spotlight could turn to the US free trade agreement with Central America....

BLOG

How can apparel firms stay competitive into the future?

Continuing with the publication of our Outlook 2018 reports last week, we looked at what apparel firms should be doing now if they want to remain competitive into the future....

just-style homepage



Forgot your password?