Calvin Klein Rebranding Could Cost $240 Million USD Following Raf Simons' Departure

Including the closure of the 205W39NYC line after poor sales.

Fashion
15,120 Hypes 8 Comments

Calvin Klein is facing costs of hundreds of millions of dollars in rebranding to following Raf Simons‘ departure. Though the company enjoyed a surge in sales powered by the holidays, completely retooling the American brand will inevitably take a toll on profits.

PVH Corp, Calvin Klein’s parent company, has removed its 205W39NYC high-end diffusion line and closed the flagship store on Manhattan’s Madison Avenue following Simons’ departure. In efforts to recuperate the profits not gained from the 205W39NYC line, PVH Corp faces a rebranding financial deficit of $240 million USD, $50 million USD more than the conglomerate first anticipated.

Michelle Kessler-Sanders, president of Calvin Klein 205W39NYC, will leave Calvin Klein in June and her departure follows on from a total of 100 employees leaving the Milan and New York offices. Raf Simons left Calvin Klein back in December 2018, eight months prior to his contract ending as a result of going “too far [and] too fast on both fashion and price,” according to Emanuel Chirico, Chief Executive Officer PVH Corp.

PVH Corp has designated $65.7 million for severance and termination, $55 million for “long-lived asset impairment,” which includes the closure of the 205W39NYC business and the flagship, $45 million for lease and contract termination costs and $5 million for inventory markdowns, as reported by WWD.

In case you missed it, Roberto Cavalli has announced it will be axing all its North American operations.

Read Full Article
Source
Vogue

What to Read Next

Kylian Mbappé's 2018 World Cup Jersey up for Auction
Sports

Kylian Mbappé's 2018 World Cup Jersey up for Auction

And it’s signed by the full championship winning France team.

New Era Celebrates the Start of Baseball Season with "We Reign As One" Campaign
Fashion  

New Era Celebrates the Start of Baseball Season with "We Reign As One" Campaign

Presented by New Era
It will give you chills.

Beams' Re-Releases Cult Book 'Live Small/Live Modern'
Design

Beams' Re-Releases Cult Book 'Live Small/Live Modern'

Published in English for the first time ever.


Apple AirPods Are the Best Selling True Wireless Earpods in the World
Tech

Apple AirPods Are the Best Selling True Wireless Earpods in the World

Dominating 60% of the global market.

Nike Dresses Its Air Max 1 With Premium Yellow Suede and Debossed Swooshes
Footwear

Nike Dresses Its Air Max 1 With Premium Yellow Suede and Debossed Swooshes

Buttery goodness.

Drake & HBO Release First 'Euphoria' Teaser Trailer
Entertainment

Drake & HBO Release First 'Euphoria' Teaser Trailer

Take a first look at Zendaya’s appearance.

More ▾
 
Subscribe to our Newsletter

Receive the latest in Footwear, Fashion, Music and Creativity in our newsletters.

By Subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.