PVH, parent company of Calvin Klein and Tommy Hilfiger expect 10% increase in prices
Three years from the aquisition of Tommy Hilfiger for US$ 3 billion, American apparel giant Phillips Van Heusen had more than doubled its size and sales outside the U.S. account for half of total sales, compared to 10% in the past.
In 2010, PVH Group total sales reached 10,1 billion euros, which corresponds to a direct turnover of 3,1 billion euros. Based on the booming performance of Tommy Hilfiger and the ebb of its debts, PVH is ready for an important acquisition in 2012, either a major U.S. brand with an international awareness or a European brand with significant potential for growth.
Fred Gehring, CEO of Tommy Hilfiger confirmed his company’s exceptional sales performance, unseen previously, registering a constant 15% increase worldwide and 9 % increase in the U.S.
In the last quarter of this year, the increase in the price of cotton and in labour costs will reach a rate of 13%, however, through rationalization and optimization of logistics and production, the company expects a maximum price increase of 10% in its products, being confident consumers will not be affected.