PVH Corp. is expanding its apparel footprint in Mexico.
The global clothing company finalized its joint venture with Grupo Axo on Dec. 1, which will enable more PVH brand products to be sold to Mexican consumers. The new joint venture will operate and oversee the distribution of Calvin Klein, Olga, Speedo, Tommy Hilfiger and Warner’s brand products in Mexico.
“We believe that leveraging Grupo Axo’s in region expertise across our brand portfolio should ensure the long-term potential of our brands in Mexico while maintaining a direct ownership interest in our Calvin Klein and Heritage Brands businesses in Mexico and giving us more control over our Tommy Hilfiger business in the region,” PVH CEO and chairman Emanuel Chirico said.
The joint venture was developed by merging PVH subsidiary PVH México, S.A. de C.V., which manages PVH’s Calvin Klein and heritage brands businesses in the country and Grupo Axo subsidiary Baseco, S.A. de C.V., a distributor of PVH’s Tommy Hilfiger brand products in Mexico.
“We are excited about the opportunity to expand our relationship beyond Tommy Hilfiger to include the global megabrand, Calvin Klein, as well as the Warner’s, Olga and Speedo heritage brands,” Grupo Axo Co-CEO Andres Gomez said. He added, “We believe all these brands present a significant opportunity for growth in Mexico and we look forward to partnering with PVH to make that potential a reality.”
On Nov. 30, PVH reported positive third quarter results, with a 4 percent increase in overall revenue compared to last year. Much of the company’s financial success stemmed from the Calvin Klein business, which achieved a 9 percent increase in revenue to $891 million over the third quarter last year. This year, Calvin Klein experienced major growth in the Chinese, European and North American wholesale markets.
PVH anticipates that the joint venture will not impact its 2016 earnings.