• Calvin Klein: Expanding further across Australia and New Zealand.
    Calvin Klein: Expanding further across Australia and New Zealand.
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The owner of the Calvin Klein trademarks worldwide and Gazal Corporation Limited have confirmed a joint venture set to fuel further expansion.

The joint venture will see PVH Brands Australia gain the rights to operate, manage and distribute Calvin Klein brand products in Australia, New Zealand and other island nations in the South Pacific. The license term is 20 years.

Currently, the principal distribution in the region consists of a wholesale and retail Calvin Klein Underwear distribution business operated by Gazal. The product is supplied through a wholly owned subsidiary of PVH, and a wholesale and retail Calvin Klein Jeans business operated by two other PVH subsidiaries.

The joint venture will combine these businesses and establish a unified approach for enhancing and expanding the distribution of the Calvin Klein brand in the region.

According to the company, the combination of Calvin Klein, Inc.’s brand vision and Gazal’s expertise in the region is intended to maximise the market opportunities across all products and distribution channels.

As part of the joint venture Gazal will also sell to the joint venture its subsidiary currently operating its Calvin Klein Underwear distribution business in Australia and New Zealand.

PVH will sell to the joint venture its subsidiaries currently operating the Calvin Klein Jeans businesses in Australia and New Zealand.

The joint venture is currently scheduled to begin its wholesale and retail operations on February 3, 2014 and will focus initially on the integration, expansion and enhancement of the existing underwear and jeanswear businesses.

Following its launch, the corporation is expected to extend into additional product categories.

Calvin Klein CEO said Tom Murry said the tie-up signifies a new era for the brand in Australia.

“This strategic move allows us to directly support the development and expansion of our Calvin Klein brand in Australia and New Zealand,” he said.

“With the tremendous expertise of Gazal, which has successfully managed our underwear business for many years, this partnership should ensure the long-term potential of the brand in the region.”

Gazal is expected oversee the day-to-day operations of the joint venture, drawing on its experience managing a multi-channel distribution network. This includes wholesale, company-operated retail and e-commerce channels.

Gazal executive chairman Michael Gazal said the partnership will grow Gazal's opportunities in the Australian market also.

“Calvin Klein is a global megabrand and we are excited to commence this joint venture. We have a long and successful relationship with PVH and are delighted to be expanding our relationship with such a powerhouse apparel brand. We look forward to growing the Calvin Klein business in the region,” he said.

Gazal is expected to realise a one-time profit of AU$6.5 million on the sale of its Calvin Klein Underwear distribution business to the joint venture.

Gazal expects the joint venture to be earnings-neutral in its current 2014 fiscal year, with the expectation for positive earnings contribution in its 2015 fiscal year.

Gazal markets and manages national and international apparel brands in Australia and New Zealand, including a portfolio of local Australian and iconic global brands, including Van Heusen, the menswear brand that Gazal has operated for over 30 years under license from PVH.

PVH Corp., one of the world’s largest apparel companies, owns and markets the iconic Calvin Klein and Tommy Hilfiger brands worldwide.

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