Looking to fuel expansion of the Tommy Hilfiger brand across Greater China, PVH Corp. has entered into a definitive agreement to reacquire the license for the brand in Hong Kong, Macau, Taiwan, Singapore and Malaysia from Dickson Concepts Ltd., along with certain related leases and retail assets.
The transaction, terms of which were not disclosed, is expected to close in the second quarter of 2019. PVH said the deal aligns with its stated strategy of gaining more direct control over its brands, including through the acquisition of licensed businesses. The move is also meant to allow the company to capitalize on what it sees as significant growth opportunity in the region.
“This transaction demonstrates our commitment to making strategic investments to support the long term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region,” Emanuel Chirico, chairman and CEO of PVH Corp., said.
Revenue in the Tommy Hilfiger business for the third quarter increased 11 percent to $1.1 billion compared to the prior-year period. Tommy Hilfiger International revenue was up 16 percent to $708 million, driven by continued strong performance across all regions and channels, including a 13 percent increase in comparable store sales.
When reporting third quarter financial results in November, Chirico said the Tommy Hilfiger Asia business was strong, with the China and Japan businesses continuing “to deliver strong growth across all channels with exceptional performance in e-commerce.
“Beginning with China, we see significant opportunity to expand Tommy in China as many of our lifestyle offerings are underpenetrated,” he said. “While we did see some slowing in retail traffic, our business delivered strong performance overall, and we capitalized on the immense consumer demand to shop digitally. Our Super Brand Day with Tmall was exceptional, and we continue to be opportunistic leveraging our digital partnerships.”
Daniel Grieder, CEO of Tommy Hilfiger Global, said Monday, “This transaction should allow us to further realize the growth opportunities that exist for the Tommy Hilfiger brand [in the region] by enabling the introduction of a wider range of product lines and offering consumers a more immersive and elevated brand experience. Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business and invest further in driving the expansion of the brand.”