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Brand Acquisitions

03/29/2010

Economic hardship is the perfect environment for companies to grow their businesses. PVH acquired Calvin Klein in 2002 during the recession that took place after September 11th, 2001. Jones Apparel Group, rumored to have been looking for a high-end buy, will fully own Robert Rodriguez to help expand its portfolio of brands. And just two weeks ago, PVH recently announced that it will acquire american designer Tommy Hilfiger for $3 billion.

Tommy Hilfiger Editorial in Harper's Bazaar, via models.com

Tommy Hilfiger makes sense on several levels. PVH already owns the license for Tommy Hilfiger neckwear, a division that will now be able to work more closely with the namesake designer. Tommy Hilfiger also has an enormous cache with European consumers and supposedly makes more money abroad than here in the U.S. Lastly, PVH lacks a more contemporary American heritage brand that can compete with the likes of Ralph Lauren.

My only reservation is that PVH already has so much of its product sold at Macy’s (Bass, Van Heusen, Michael Kors neckwear, IZOD, Geoffrey Beene, CK White Label) that adding Tommy Hilfiger (a brand exclusively sold at Macy’s and branded free standing  stores) will make the company particularly dependent on the department store’s performance.

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