Calvin Klein is closing its Madison Avenue flagship store in New York this spring as the fashion label shakes up its strategy.
The apparel maker owned by PVH Corp. said it would begin using a “digital-first” approach and reorganize its North American division, combining operations in sportswear and jeans. Its higher-end Calvin Klein 205W39NYC business will get a makeover as well, relaunching with a new name and creative direction. Designer Raf Simons left in December.
“Our industry is witnessing a historic transformation in consumer behavior,” Chief Executive Officer Steve Shiffman said in a statement. It’s especially important now to meet customers’ desires for “culturally relevant products and experiences.”
The Calvin Klein brand has struggled to draw shoppers with its new initiatives. Emanuel Chirico, CEO of parent company PVH, expressed disappointment in the brand’s 205 collection and jeans business on a conference call with analysts last quarter.
The flagship is at 645 Madison Avenue, at East 60th Street. Shiffman said Calvin Klein is currently evaluating options for new retail locations, though he did not specify where. Management wants to grow Calvin Klein to US$12 billion in global retail sales “over the next few years,” Shiffman said.
PVH shares rose about 5 per cent after the close of regular trading Thursday, after the company said fourth-quarter profit likely beat its earlier projections. Adjusted earnings will be at least US$1.75 a share, ahead of the US$1.61 average estimate of analysts surveyed by Bloomberg.