Retail is heating up south of the border.
PVH Corp. and Grupo Axo have inked a joint-venture agreement that will license from wholly owned subsidiaries of PVH the rights to operate and manage the distribution of Calvin Klein, Tommy Hilfiger, Warner’s, Olga and Speedo brand products in Mexico.
According to a press release Thursday, the joint venture will be formed by merging PVH México, S.A. de C.V., a wholly owned subsidiary of PVH and the operator of its Calvin Klein and Heritage Brands businesses in Mexico, with Baseco, S.A. de C.V., a wholly owned subsidiary of Axo and a Mexican distributor of Tommy Hilfiger.
“This strategic move allows us to maintain a direct ownership interest in our Calvin Klein and Heritage Brands businesses in Mexico, while gaining more control over our Tommy Hilfiger business in the region,” Emanuel Chirico, chairman and chief executive officer of PVH, stated. “Grupo Axo, which will oversee the joint venture’s day-to-day operations, is an experienced multi-channel distributor, including successfully managing our Tommy Hilfiger business in Mexico for the last 22 years. We believe that leveraging Grupo Axo’s in region expertise across our brand portfolio should ensure the long-term potential in Mexico of our brands.”
Andres Gomez, co-chief executive officer of Grupo Axo, continued, “We have a long and successful relationship with Tommy Hilfiger and PVH. We are excited about the opportunity to expand our relationship to include the global megabrand, Calvin Klein, as well as the Warner’s, Olga and Speedo heritage brands. We believe all these brands have huge potential for growth in Mexico and we look forward to partnering with PVH to make that potential a reality.”
PVH, which also owns Izod and Van Heusen, posted earnings per share of $1.63 in the fourth quarter, compared with $0.62 per share for the same period in the prior year. Revenue increased 2 percent from $2.07 billion to $2.11 billion. At time of writing, shares (PVH) had climbed 2.85% Friday to reach $88.82.