Calvin Klein, Inc. Announces Exclusive Distribution Agreement With Murjani India Ltd. Bringing Wholesale And Retail Operations To India.
Global Reach of ck Calvin Klein, Calvin Klein Jeans, and Calvin Klein Underwear Expanded and Strengthened; Women’s & Men’s Apparel, Accessories and Retail Stores to Debut Spring 2007
NEW YORK, NY, September 25, 2006 – Calvin Klein, Inc., a wholly owned subsidiary of Phillips-Van Heusen Corporation [NYSE: PVH], today announced that it has entered into an exclusive distribution agreement and retail store license for India with Murjani India Ltd.
The agreement includes both the ck Calvin Klein bridge line of women’s and men’s apparel and accessories, as well as Calvin Klein Jeans and jeans accessories. Murjani will sell the products through free standing retail stores and select department stores approved by CKI. Separately, The Warnaco Group, Inc. has entered into an exclusive distribution and retail agreement with Murjani for Calvin Klein Underwear and, pursuant to its global licenses, will be the exclusive supplier of Calvin Klein Jeans and jeans accessories.
These new arrangements include the planned opening of a total of at least 40 free-standing ck Calvin Klein, Calvin Klein Jeans, and Calvin Klein Underwear stores over the first five years of operation, with development beginning as early as Spring 2007.
Murjani has an established retail distribution platform to bring well-known luxury brands to India, and currently has relationships with Gucci, Jimmy Choo, and French Connection, among others.
“We have been evaluating the potential of the Indian market for an extended period of time. We feel strongly that over the next decade this region will become a very important part of our global business,” said Tom Murry, President and Chief Operating Officer, Calvin Klein, Inc. “Throughout our review of the region and potential partners, we have been very impressed with Murjani's past experiences and future plans, and feel that they will do a great job managing the strategic distribution of Calvin Klein in India.”
“We are very excited about partnering with Calvin Klein, one of the world’s most recognized brands” said Vijay Murjani, Managing Director of the Murjani Group “This is yet another big step towards our objective of providing a world class brand experience to the Indian consumer.”
Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world. It designs and markets women’s and men’s designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide. Brands/lifestyles include Calvin Klein Collection, ck Calvin Klein, Calvin Klein, Calvin Klein Jeans and Choice Calvin Klein. Product lines under the various Calvin Klein brands include apparel, accessories, shoes, underwear, sleepwear, hosiery, socks, swimwear, eyewear, watches, jewelry, coats, and fragrances, as well as products for the home.
Phillips-Van Heusen Corporation is one of the world's largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world's largest shirt company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co., and its licensed brands Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, unlisted, A Kenneth Cole Production, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection and JOE Joseph Abboud.
The Warnaco Group, Inc., headquartered in New York, is a leading apparel company engaged in the business of designing, marketing and selling intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories under such owned and licensed brands as Warner's®, Olga®, Lejaby®, Body Nancy Ganz(tm), Speedo®, Anne Cole®, Op®, Ocean Pacific®, Cole of California® and Catalina® as well as Chaps® sportswear and denim, J. Lo by Jennifer Lopez® lingerie, Nautica® swimwear, Michael Kors® swimwear and Calvin Klein® men's and women's underwear and sportswear, men's, women's, junior women's and children's jeans and accessories and women's and juniors’ swimwear.
The Murjani Group, founded in 1930, is the only Indian company in the world to have developed and launched major international designer brands such as Gloria Vanderbilt and Tommy Hilfiger. In 2004 Murjani launched the first international designer lifestyle brand in India - Tommy Hilfiger, which rapidly became the leading international lifestyle brand in the country. In 2006, the Murjani Group announced several exclusive relationships with major international brands for India, including Gucci, Jimmy Choo, French Connection, Tumi, and Build A Bear.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release including, without limitation, statements relating to the Company’s future revenues and earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the levels of sales of the Company’s apparel, footwear and related products, both to its wholesale customers and in its retail stores, the levels of sales of the Company’s licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, repositionings of brands by the Company’s licensors and other factors; (iii) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth and inventory, including the Company’s ability to continue to realize revenue growth from developing and growing Calvin Klein; (iv) the Company’s operations and results could be affected by quota restrictions and the imposition of safeguard controls (which, among other things, could limit the Company’s ability to produce products in cost-effective countries that have the labor and technical expertise needed), the availability and cost of raw materials (particularly petroleum-based synthetic fabrics, which are currently in high demand), the Company’s ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company’s products can best be produced), and civil conflict, war or terrorist acts, the threat of any of the foregoing, or political and labor instability in the United States or any of the countries where the Company’s products are or are planned to be produced; (v) disease epidemics and health related concerns, which could result in closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas; (vi) acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquired entity into the Company with no substantial adverse affect on the acquired entity’s or the Company’s existing operations, employee relationships, vendor relationships, customer relationships or financial performance; (vii) the failure of the Company’s licensees to market successfully licensed products or to preserve the value of the Company’s brands, or their misuse of the Company’s brands and (viii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events or otherwise.
For more information please contact :
Murjani Group
contact@murjanigroup.com
